- The European Union has approved a financial scheme to increase RE development in Croatia.
- This development will assist Croatia in meeting its renewable energy targets.
The European Commission has approved, under EU State aid rules, a Croatian funding scheme to support electricity production from renewable sources. Croatia informed the Commission of introducing a new scheme to support electricity produced from renewable energy sources, such as solar, hydro, wind, 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. It 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. After that, the aid will be paid out to the selected beneficiaries for a period of 12 years.
This scheme will help Croatia arrive at 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.