In 2007, Croatia has adopted a feed-in tariff legislation based on the Tariff System for the Production of Electricity from Renewable Energy Sources and Cogeneration on 22 March 2007 and the Regulation on Incentive Fees for Promoting Electricity Production from Renewable Energy Sources and Cogeneration.
Croatia has adopted a feed-in tariff system for the production of electricity from renewable sources and cogeneration. The market operator concludes contracts on the purchase of electricity at an incentive price with eligible renewable energy producers until the total planned production of renewable electricity reaches the minimum share established under a special regulation. The contracts shall be concluded for a period of 12 years.
According to Art. 4 of the Tariff System the tariffs distinguish between plants with installed electrical power up to 1 MW and plants exceeding 1 MW. The tariffs in 2007 reach from 3.40 HRK /kWh (~0.46 €) for small solar power plants to 0.36/kWh HRK (0.05 €) for liquid biofuel power plants. Tariffs for wind power plants are determined at 0.64 HRK/kWh (~0.09 €) and 0.65 HRK/kWh above 1 MW, respectively. Other tariffs for plants under 1MW include hydro power 0.69 HRK/kWh (~0.1 €), biomass 1.2 - 0.95 HRK/kWh (0.16-0.13 €) and goethermal power plants 1.26 HRK/kWh (~0.17 €). The tariffs can be lowered by a factor of between 0.99 and 0.93 if the share of domestic components in the electricity production project is below 60%. The tariffs are annually adjusted to the retail price index.
The tariffs paid by the market operator are financed through incentive fee funds according to the Regulation on Incentive Fees of 2007. The incentive fee shall be paid by the electricity buyer and are set in the Regulation at 0.0198 HRK/kWh (~0.27 ct. €) in 2008 to 0.035 HRK/kWh (~0.48 ct. €) in 2010.
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