Energy Law at Croatia

Here's an overview of Energy Law in Croatia:

Energy Law in Croatia

1. Legal and Regulatory Framework

Croatia's energy sector is governed by EU-aligned legislation, as a member of the European Union since 2013.

The sector is regulated through national laws and by transposing EU directives, particularly on energy efficiency, renewables, market liberalization, and decarbonization.

The cornerstone legislation is the Energy Act (Zakon o energiji), which provides the basis for regulation, market operation, and energy policy implementation.

2. Key Legislation

Energy Act (OG 120/12, 14/14, 95/15, 102/15, 68/18, 52/19) – General framework for the energy sector.

Electricity Market Act – Regulates electricity production, distribution, transmission, and trade.

Gas Market Act – Governs the natural gas market.

Renewable Energy Sources and High-Efficiency Cogeneration Act – Promotes RES and regulates incentives.

Energy Efficiency Act – Provides for measures to increase efficiency across sectors.

3. Regulatory Bodies

HERA (Croatian Energy Regulatory Agency): Independent body responsible for energy market regulation, licensing, tariffs, and consumer protection.

Ministry of Economy and Sustainable Development: Develops and implements national energy policy.

HOPS (Croatian Transmission System Operator): Manages electricity transmission.

HEP (Hrvatska Elektroprivreda): State-owned utility responsible for electricity generation, distribution, and supply.

4. Electricity Sector

Croatia’s electricity market is liberalized but dominated by HEP, particularly in generation and supply.

Consumers can choose their electricity supplier.

Power generation is a mix of hydro, thermal, and increasingly renewable energy sources.

Transmission and distribution are regulated monopolies.

5. Renewable Energy and Climate Goals

Croatia aligns with the EU’s Green Deal and has committed to:

36.6% renewable energy share in gross final consumption by 2030.

Reduction in greenhouse gas emissions.

Support mechanisms for RES include:

Feed-in tariffs (for legacy projects)

Market premiums (for new projects)

Investment subsidies

Net metering for small-scale producers

6. Natural Gas and Energy Security

Croatia imports most of its gas but has developed infrastructure for diversification, including the LNG terminal on Krk Island.

The gas market is open to competition, with regulated network operators and traders.

7. Energy Efficiency and Environmental Requirements

The Energy Efficiency Act mandates:

National Energy Efficiency Action Plans (NEEAPs)

Obligations on public buildings and transport

Energy projects must comply with Environmental Impact Assessment (EIA) and strategic environmental assessment (SEA) procedures.

Summary Table

AspectDescription
Legal BasisEnergy Act, Electricity Market Act, RES Act, EE Act
Regulatory AuthorityHERA (regulator), Ministry of Economy (policy)
Electricity MarketLiberalized, with dominant public utility (HEP)
Renewables Share (2030)Target of 36.6%
Incentives for RESMarket premiums, subsidies, net metering
Energy EfficiencyRegulated by law, aligned with EU directives
Environmental OversightMandatory EIAs and SEAs for major energy projects

 

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