Croatia launches second round of renewable energy auctions

Recently the Croatian Energy Market Operator (HROTE) launched the second round of renewable energy auctions aimed at promoting photovoltaic, wind, and hydropower projects. The auction allocated a total of 450MW of PV, 150MW of wind, and 7.25MW of hydropower projects, with a total installed capacity of 607.25MW, of which PV projects were allocated the most installed capacity, 74%, and the auction received a total of 257.2 million euros in support.

The tender for PV projects is divided into two parts, one of which provides market subsidies for each PV project with an installed capacity of more than 1MW, with a maximum reference value of €67.05/MWh. The other part grants subsidies to PV projects with a capacity of 200kW to 6MW, with a quota of 100MW and a maximum reference value of subsidies of €82.04/MWh.

Croatia's first renewable energy auction was held in 2022 to allocate 638MW of renewable energy projects. However, the first auction attracted only weak interest, with only 107MW of projects receiving subsidies. The regulator offered a quota of 300MW for PV projects, and ultimately only four bids were accepted, totaling 8MW. 2021 saw the allocation of small-scale renewable energy projects. With a cumulative installed capacity of 88MW, only 25.5MW of renewable energy projects were approved for incentives, including 13.4MW of PV projects.

HROTE's initial plan was to launch the round in 2023, and has been under intense pressure ever since. HROTE said the auction was in line with the new subsidy scheme that incentivizes renewables through market premiums and feed-in tariffs. The regulator adopted the scheme two days before the bidding began.

Croatia's renewable energy development program is supported by the government and regulators, with incentives for project construction through market premiums and feed-in tariffs, as well as subsidy opportunities for small and medium-sized enterprises (SMEs) and the renewable energy community. According to the Croatian Renewable Energy Agency (RESC), Croatia has installed 238.7MW of new PV capacity in 2023, and the cumulative installed capacity has reached 462.5MW, demonstrating Croatia's positive development in the renewable energy sector. Through these initiatives, Croatia is expected to further promote its clean energy transition, protect the environment and reduce carbon emissions.

Seraphim is a Tier 1 solar module manufacturer, listed by BNEF. We research, develop, produce, and sell solar PV products since 2011.

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