August 06 2012
According to the Ministry of Economy, Labour and Entrepreneurship's Annual Energy Report for 2010(1) 18,869.9 gigawatt hours (GWh) of electricity were supplied in Croatia in 2010 (with reported transmission and distribution system losses representing 2,021.9GWh).
Croatia imports approximately 40% of its electricity (depending on the season and prevailing weather). According to the report, Hrvatska elektroprivreda dd (HEP Group), Croatia's national electricity company, generates 4,165.56 megawatts (MW) of electricity, of which 1,681MW (40.6%) is generated by thermal power plants, 2,136.56MW (51%) by hydropower plants and 348MW (8.4%) by one nuclear power plant.
The total length of the transmission network is 7,438 kilometres (km) (1,247km of which is 400 kilovolts (kV), 1,210km is 220kV and 4,789kV, while 192km is medium voltage). It is operated by HEP-Operator prijenosnog sustava doo (HEP-TSO). The distribution network is 103,401.2km in length and is operated by HEP-Operator distribucijskog sustava doo (HEP-DSO). In terms of cross-border exchange, 12,359GWh entered Croatia and 7,682GWh exited Croatia in 2010.
In April 2012 the government increased the tariff rates for all customer categories. The price of electricity thus rose by 20% for residential customers and 12% for commercial customers. The government announced that prices will continue to rise until they meet the EU average.
Croatia's national electricity strategy is set out in the Strategy of Energy Development 2009 to 2020.(2) The key points of the strategy are:
The electricity legal framework is regulated by the following acts:
The framework recognises five types of electricity activity - generation, transmission, distribution, sale of power and electricity market organisation. Generation and supply (including sale) to eligible customers and trading on the electricity market are market activities in which price and quantity are freely negotiated. In contrast, generation of electricity for tariff customers, transmission and distribution of electricity, electricity market organisation and supply for tariff customers are regulated activities.
All market activities are performed by the HEP Group, which comprises:
In accordance with the third EU energy package, the government is considering unbundling HEP Group. So far, only ownership unbundling appears to be excluded.
Plomin C - 500 MW coal-fired thermal plant
On July 24 2012 HEP issued notification for a request for expressions of interest for a strategic partner in the design, financing, construction and maintenance of the Plomin C coal-fired nuclear plant (500 MW capacity, with planned annual production of 3.6 TWh), and for a supplier of fuel for the plant. The deadline for submissions is September 14 2012. By September 28 2012 HEP will issue a shortlist and call the shortlisted parties to present their binding offers, after which potential partners will have access to all necessary documentation (including a data room). The bidder with the most economically advantageous offer should be picked by the end of the first quarter of 2013, while the project is expected to be finalised between 2015 and 2017. The project value is estimated at €800 million, of which half shall be financed by the strategic partners and half by HEP.
In order to achieve security of supply, the Croatian government is planning the following additional projects:
(1) See www.mingorp.hr/UserDocsImages/Energija2010_cd.pdf.
(2) Official Gazette 130/09.
(3) Official Gazette 68/01, 177/04, 76/07, 152/08 and 127/10.
(4) Official Gazette 177/04 and 76/07.
(5) Official Gazette 177/04, 76/07, 152/08, 14/11 and 59/12.
(6) Planned capacity 360MW.
(7) Planned capacity 52MW.
ILO provides online commentaries as specialist Legal Newsletters. Written in collaboration with over 500 of the world's leading experts and covering more than 100 jurisdictions, it delivers individually requested information via email to an influential global audience of law firm partners and international corporate counsel. Please click here to register for the service.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com.