Croatia has launched a new initiative to bolster its renewable energy sector with a significant auction aimed at expanding solar photovoltaic (PV) capacity. The Croatian Energy Market Operator (HROTE) announced the auction, which includes 450MW of solar PV capacity up for bidding, in a bid to enhance the country's renewable energy production.
According to HROTE, the auction, which opened earlier this year and closes on June 27, 2024, aims “to promote the production of electricity from renewable energy sources.” The initiative is part of Croatia's strategy to diversify its energy mix and increase reliance on sustainable energy solutions.
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The auction is divided into several categories based on project size and ownership. The majority of the capacity, 350MW, is designated for projects with an installed capacity exceeding 1MW, with a maximum bid price set at €67.05/MWh (US$71.86/MWh). An additional 100MW is split between projects ranging from 0.2MW to 6MW, reserved specifically for small and medium-sized enterprises or renewable energy communities, with bidding capped at €82.04/MWh.
Participants are restricted to submitting one bid per project, ensuring a competitive process. In the event of oversubscription in any category, successful bids will be determined based on the lowest bid price. Projects with identical bids will be prioritized by size, favoring smaller projects.
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Each winning bid is eligible for a maximum support of €30 million per project, aimed at facilitating the implementation of solar PV projects across Croatia.
The auction marks a pivotal step for Croatia, which currently lags behind many EU members in solar PV capacity. As of the end of 2023, Croatia had 500MW of installed solar capacity, with projections suggesting a substantial increase to 5.7GW by 2030.
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This growth is a significant leap from the country's existing National Energy and Climate Plan (NECP), which had forecasted only 1GW of solar PV capacity by the end of the decade, highlighting Croatia's ambitious renewable energy targets.
The outcome of the auction, expected to be announced by the end of 2024, will play a crucial role in shaping Croatia's renewable energy landscape and its progress towards sustainable energy goals.
