Croatia - Distributed Energy ResourcesCroatia-Distributed Energy Resources
Overview
Croatia imports about 50% of the total of about 350 PJ (petajoules) of energy consumed annually. It imports 80% of its oil needs, 40% of its gas, 35% of its electricity, and 100% of its coal needs. As a member of the European Union (EU) since July 1, 2013, Croatia has adjusted its energy sector regulations and development plans to enable smooth integration into the European energy market and to ensure a diversified and sustainable supply of energy resources and improved energy efficiency.
The Croatian government is updating its Energy Strategy, adopted in 2009. It has not implemented the old strategy, primarily due to the 2009-2015 economic recession in Croatia. The new strategy will focus more on renewable energy and on Distributed Energy Resources (DER) -- physical and virtual energy assets that are deployed across the distribution grid at or near the end user, behind the meter. In early 2019, the government adjusted the regulatory framework to develop a smart grid that would enable the small scale units operated by households or businesses to sell their electricity surplus to the grid, based on a sustainable business model.
While there are eleven active electricity suppliers in Croatia, the state-owned Croatian Electricity Company (HEP) is still the key market player. Since Croatia joined the EU, the Croatian Electric Energy Transmission Operator (HOPS) operates as a the state-owned company, independent from HEP. These companies will play an important role in the development of DER in Croatia. According to a recent analysis prepared by The Boston Consulting Group (BCG), a U.S. based global management consulting firm, local DER are mostly limited to reselling imported solar heating equipment to households and businesses, with little local production. Only a few DER suppliers offer integrated solutions with cost-benefit analysis, permit acquisition, installation, and maintenance. Almost no one yet offers full end-to-end services including financing, an insurance package, local network integration, and energy trading. However, there are several local companies preparing to launch such full-service business models during the 2019-2020 period.
Leading Sub-Sectors
According to BCG, Croatia has great potential for solar energy usage in the form of DER. Croatia has one of the highest amounts of solar radiation in Europe (3.4-5.2 kWh/m2day), but one of the lowest photovoltaic capacity per capita (12 Wp -- lower than Sweden and 40 times lower than Germany). The largest opportunity lies along the Croatian coast that is flooded by tourists who overload the local infrastructure capacity during the summer (in 2018, 18.7 million foreign tourists visited Croatia – a country of 4 million inhabitants).
Opportunities
According to BCG, the following are the seven key technologies that are needed to support the development of DER in Croatia:
Web Resources
Ministry of Environmental Protection and Energy
Croatian Electricity Company
Croatian Electric Energy Transmission Operator
Croatian Energy Regulatory Agency
Croatian Energy Market Operator
Energy Institute Hrvoje Pozar
U.S. Embassy - U.S. Commercial Service
Damjan Bencic, Senior Commercial Specialist
Zagreb, Croatia
Tel: +385 (0)1 661 2186; Fax: +385 (0)1 661 2446
Email: Damjan.Bencic@trade.gov
Website: export.gov/croatia/
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Croatia imports about 50% of the total of about 350 PJ (petajoules) of energy consumed annually. It imports 80% of its oil needs, 40% of its gas, 35% of its electricity, and 100% of its coal needs. As a member of the European Union (EU) since July 1, 2013, Croatia has adjusted its energy sector regulations and development plans to enable smooth integration into the European energy market and to ensure a diversified and sustainable supply of energy resources and improved energy efficiency.
The Croatian government is updating its Energy Strategy, adopted in 2009. It has not implemented the old strategy, primarily due to the 2009-2015 economic recession in Croatia. The new strategy will focus more on renewable energy and on Distributed Energy Resources (DER) -- physical and virtual energy assets that are deployed across the distribution grid at or near the end user, behind the meter. In early 2019, the government adjusted the regulatory framework to develop a smart grid that would enable the small scale units operated by households or businesses to sell their electricity surplus to the grid, based on a sustainable business model.
While there are eleven active electricity suppliers in Croatia, the state-owned Croatian Electricity Company (HEP) is still the key market player. Since Croatia joined the EU, the Croatian Electric Energy Transmission Operator (HOPS) operates as a the state-owned company, independent from HEP. These companies will play an important role in the development of DER in Croatia. According to a recent analysis prepared by The Boston Consulting Group (BCG), a U.S. based global management consulting firm, local DER are mostly limited to reselling imported solar heating equipment to households and businesses, with little local production. Only a few DER suppliers offer integrated solutions with cost-benefit analysis, permit acquisition, installation, and maintenance. Almost no one yet offers full end-to-end services including financing, an insurance package, local network integration, and energy trading. However, there are several local companies preparing to launch such full-service business models during the 2019-2020 period.
Leading Sub-Sectors
According to BCG, Croatia has great potential for solar energy usage in the form of DER. Croatia has one of the highest amounts of solar radiation in Europe (3.4-5.2 kWh/m2day), but one of the lowest photovoltaic capacity per capita (12 Wp -- lower than Sweden and 40 times lower than Germany). The largest opportunity lies along the Croatian coast that is flooded by tourists who overload the local infrastructure capacity during the summer (in 2018, 18.7 million foreign tourists visited Croatia – a country of 4 million inhabitants).
Opportunities
According to BCG, the following are the seven key technologies that are needed to support the development of DER in Croatia:
- Battery Storage: Captures electricity for use at a later time
- Photovoltaic: PV panels for conversion of sunlight to electricity
- Combined Heat & Power: CH&P plants with various feedstocks
- Energy Efficiency: A way of managing and restraining the growth of energy consumption
- EMS/VPP (Environmental Management System/Voluntary Protection Program): A digital ecosystem of hardware, software, and services for monitoring and controlling the energy flow
- Demand Response: Services that help better match the power demand with supply
- Grid Integration: Not a specific technology, but solutions that help integrate DER into the grid
Web Resources
Ministry of Environmental Protection and Energy
Croatian Electricity Company
Croatian Electric Energy Transmission Operator
Croatian Energy Regulatory Agency
Croatian Energy Market Operator
Energy Institute Hrvoje Pozar
U.S. Embassy - U.S. Commercial Service
Damjan Bencic, Senior Commercial Specialist
Zagreb, Croatia
Tel: +385 (0)1 661 2186; Fax: +385 (0)1 661 2446
Email: Damjan.Bencic@trade.gov
Website: export.gov/croatia/
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.