Status of Development – EIHP, Croatia

The pending transition from FIT to Market Premium system is the reason of current biogas market freeze in Croatia. Despite the obstacles, EIHP is actively pursuing Biogas Action aims and by aligning its targets to the complicated circumstances and focusing on knowledge transfer, creation of stakeholder platform, development of business models and trainings.

State of Departure

Although Croatian biogas market records a 27% annual growth from 2016 to 2017, this growth is based on power purchasing contracts signed by December 2015. Since January 2016, a single contract was not signed in the overall renewable energy sector, let alone in biogas. The main reason is poor transition from feed-in system to market premium system that is still pending and non-existence of implementing acts both for electricity and bio fuel market. n May 2017, there are 38.935 MWe in 26 biogas plants operating. 23.094 MWe in 27 biogas plants have power purchasing contract signed with the Croatian Energy Market Operator (HROTE) and are eligible for FiT within the old system. Only 2 biogas plants remain to rely on waste (5.5 MWe) whereas most of them, if not all, rely heavily on maize silage as the main feedstock.

All energy from biogas is focused on electricity production whereas biomethane, either as natural gas substitute or as biofuel for transport, is fully neglected despite some existence of fundamental legislation that includes biomethane production and utilisation.

What have been done during the first project part

During the first period of BiogasAction, EIHP was optimistic in the new Government to tackle burning energy sector issues, starting from renewing 2009 Energy Strategy, NREAP renewal, biofuels on market, financing on contracted renewable energy projects and fast and smooth transition to from feed-in system to market premium. Yet, despite the efforts within Biogas Action to contribute to creating better frameworks for the widespread production of biogas and biomethane by participating actively in public discussions and writing comments on given working versions of legislative acts, it was necessary to admit that project indicators are not likely to be achieved as originally proposed. Thus, EIHP has undergone through changes of Grant Agreement.

Activities regarding the institutional building include knowledge tansfer sessions, work on platform for biogas market stakeholders, but also work to avoid the announced by the government FiT reduction. EIHP is actively meeting with municipalities, policy makers, biogas stakeholders when Biogas Action is being introduced.

Implementation of series of 6-8 trainings is planned for mid 2018 aiming at farmers, utility company management, GHG emission mandatory payers, fossil sector companies, officers from extension service and other think tank members.

Read the full report about the first period of the project in Croatia, here.