EU approves renewable energy development funding scheme in Croatia
A new approved scheme in Croatia will provide premium power tariffs for renewable energy projects, including geothermal.
The European Commission has approved, under EU State aid rules, a Croatian aid scheme to support electricity production from renewable sources. The measure will help Croatia reach its renewable energy targets, including those set in its Recovery and Resilience plan, and contribute to the European objective of achieving climate neutrality by 2050, without unduly distorting competition in the Single market.
Croatia notified the Commission of its intention to introduce a new scheme to support electricity produced from renewable energy sources, namely wind, solar, hydro, biomass, biogas and geothermal power plants.
Under the scheme, the aid will take the form of a premium on top of the electricity market price. The premium will be set through a competitive bidding process and will not be higher than the difference between the average production cost for each renewable technology and the electricity market price. The beneficiaries will be selected in tenders that will take place in the period 2021-2023.
The measure, which has a total budget of approximately EUR 783 million (HRK 6 billion), will be open until 2023. The aid will be paid out to the selected beneficiaries for a period of 12 years.
The scheme will help Croatia increase its share of electricity produced from renewable energy sources and reduce CO2 and other greenhouse gas emissions. It will support Croatia’s commitment to achieve the European climate targets and environmental objectives, as also set in its National Energy Climate Plan (NECP) and its Recovery and Resilience plan.
Source: EU Commission