Electricity production

FREEDOM TO ESTABLISH
 
If you are established outside the Republic of Croatia, you as a natural or legal person have freedom to provide services on a permanent basis in the Republic of Croatia, if you register an establishment in the Republic of Croatia and obtain the licence for performing the energy activity of electricity production from the Croatian Energy Regulatory Agency and submit the following documents, i.e. fulfil the following conditions:
 
Proof of general qualifications:
 
  • Completed form Application for Issuing of the license for performing the energy activity of electricity production (ZDOED obrazac), signed by a legal or a natural person (further in the text: the Applicant)
  • An excerpt from the relevant register proving that the Applicant is registered for performing the energy activity of electricity production, in case the Agency cannot determine whether a legal or natural person is registered for the performance of energy activity by inspecting the relevant public register
  • A statement by the responsible person that members of the board or their subordinates in the legal person have not been convicted by a final judgment for criminal offences against the economy in the last five years, certified by a notary public, or a statement by a natural person that he/she has not been convicted by a final judgment for criminal offences against the economy in the last three years, certified by a notary public
 
Proof of technical qualifications:
 
  • The evidence of ownership or the right of usage of premises, facilities and/or equipment for business purposes based on the lease contract or another contract concluded with the owner of the leased premises, facilities and equipment for carrying out the energy activity
  • Use permits or other necessary certificates as proofs of compliance with the legislation regulating physical planning and construction and with other specific legislation based on which a building, facility and/or equipment can be used, operated or an energy activity can be performed
  • A statement by the responsible person that the authorized inspection has not detected deficiencies to be rectified or if the inspection had identified the deficiencies, a proof of their rectification
  • A list of ongoing contracts with other legal entities that affect the technical qualifications of the Applicant (if concluded)
  • Technical description of the built production facility, for each production facility that is owned or with the right of use
  • The three-year development and investment plan for performing the energy activity of electricity production signed by the responsible person in the legal person or the three-year development and investment plan for performing the energy activity of electricity production signed by a natural person
 
Proof of professional qualifications:
 
  • The organization chart or a section of the Applicant’s organization chart concerning the energy activity of electricity production
  • A list of workers employed in the energy activity of electricity production with the data concerning the level of education, the workplace and the job description according to the Staff Establishment Plan signed by the responsible person in the legal person or by the natural person
  • A list of ongoing contracts with other legal entities that affect the professional qualifications of the Applicant (if concluded) 
 
Proof of monetary qualifications:
 
  • The form BON-1 and for a natural person a cash inflows and outflows ledger reported to the tax authorities in the last two years
  • The form BON-2 or the Solvency Certificate issued by the business bank for the legal or a natural person
 
Decision on the issuance of a license for the performance of the energy activity of electricity production
 
An energy entity that has obtained a license to perform the energy activity of electricity generation may participate in the electricity market by buying or selling electricity to another producer, supplier, trader, power exchange, Croatian Transmission System Operator for the purpose of providing ancillary services, providing balancing services, compensation exchange plan and to cover losses in the transmission network,  HEP-Distribution System Operator for the purpose of providing ancillary services and to cover losses in the distribution network or by importing or exporting it across the borders of the Republic of Croatia.
 
In order to participate in the electricity market in the Republic of Croatia, a potential producer is obliged to:
 
  • be registered as a legal/natural person in the court/trade register
  • conclude a contract on the use of the network with HOPS and/or HEP-ODS
  • have a license to perform the energy activity of electricity production issued by HERA (for production facilities with a total installed power of > 500 kW)
  • have obtained EIC code in an EIC Issuing Office mandated by ENTSO-E (EIC)
  • In case you want to be:
    • balance group manager conclude an imbalance responsibility agreement with HOPS
    • a member of an existing balance group concludes an agreement on membership in the selected balance group
  • submit to HROTE the Request for Conclusion of the Electricity Market Participation Agreement (Request)
  • conclude an Electricity Market Participation Agreement (the Agreement) with HROTE, and
  • In the case of import or export:
    • submit to HOPS a request for participation in the allocation of cross-border transmission capacities
  • participate in the allocation of cross-border transmission capacities (depending on the borders, the allocation is organized and implemented by HOPS, JAO or SEE CAO)
 
A producer in trial operation is an energy entity that produces electricity during the trial operation of production facilities, the total installed power of which exceeds 500 kW. For performing the energy activity of production, the producer in trial operation does not require an energy permit.
 
In order to participate in the electricity market in the Republic of Croatia, the producer in the trial is obliged to:
  • be registered as a legal/natural person in the court/trade register
  • conclude a contract on the use of the network with HOPS and/or HEP-ODS
  • obtain an EIC label from HOPS
  • conclude an agreement on membership in the selected balance group  
  • submit a request for the conclusion of an electricity market participation agreement via the form published by HROTE on its website (Application)
 
With the application, it is necessary to submit:
  • a copy of the Network Use Agreement concluded with the system operator (HOPS or HEP-ODS)
  • a document proving, in accordance with the provisions of the Construction Act, the notification of the start of the trial operation and the date of the anticipated end of the trial operation
  • a document proving that the manufacturer has entered into a contract for membership in the balance group with the head of the balance group in the trial operation
 
The producer in trial operation shall be obliged to notify HROTE without delay of the completion of the trial operation with the submission of a copy of the Certificate for Permanent Operation of the Plant, and if it still intends to participate in the electricity market, submit a request for the conclusion of a contract on participation in the electricity market. 
 
Fees
 
EUR 1,990.84 (for application for issuing of the license)
 
Payment via online banking
 
From: Company title, Company Address
(in case of natural persons use full name or title)
 
Receiver: HERA, Ulica grada Vukovara 14, 10000 Zagreb, Croatia
VAT No.: HR83764654530
Bank: Hrvatska poštanska banka, Jurišićeva 4, 10000 Zagreb, Croatia
IBAN: HR9123900011100027703
BIC code: HPBZHR2X
Reference No.: VAT Number of the natural or legal person submitting the ZDOED Form
 
 
 
hera@hera.hr (for sending photographed or scanned documents; signed, without a stamp)
 
 
 
1.327,23 EUR (annual fee for the service of organising the electricity market)
0,02 EUR/MWh electricity sold (monthly fee for electricity market organisation service)
 
Payment via online banking:
 
Payer: Company title, Company Address
Receiver: HRVATSKI OPERATOR TRŽIŠTA ENERGIJE d.o.o., Ulica grada Vukovara 284, 10000 Zagreb, Croatia
VAT No.: HR75801633608
Bank: Privredna banka Zagreb d.d., Radnička cesta 50, 10000 Zagreb, Croatia
IBAN: HR4723400091110177478
BIC code: PBZGHR2X
Reference No.: OIB Payers 
 
 
Competent authority and regulations
 
Croatian Energy Regulatory Agency
Ulica grada Vukovara 14, 10 000 Zagreb
+385 1 6323 700/6326 777
hera@hera.hr
 
Croatian Energy Market Operator Ltd.
Ulica grada Vukovara 284, 10 000 Zagreb
+385 1 63 06 700
hrote@hrote.hr
 
 
Act on the Electricity Market (OG 111/21, 83/23, 17/25)
Energy Act (OG 120/12, 14/14, 102/15, 68/18 - Act on the Amendments to the Act on the Regulation of Energy Activities)
Ordinance on Licenses for Carrying Out Energy Activities and Keeping the Register of Issued and Revoked Licenses for Energy Activities (OG 44/22 )
Decision on the Fees for Carrying Out the Regulation of Energy Activities (OG 38/22)
Rules on balancing the electricity system (HOPS, 12/2023)
Electricity Market Organisation Rules (OG 107/19, 36/20)
Decision on the fee for the organization of the electricity market (OG 94/07, 38/12) 
 
Authorization
 
Decision on Issuing the License for Carrying Out the Energy Activity of Electricity Production
 
Deadline: 30 days and in case of examination procedure 60 days
 
Electricity Market Participation Agreement Concluded
If it is in trial operation - a Contract on Temporary Participation in the Electricity Market has been concluded
 
Legal remedies
 
It is not possible to submit a complaint against the Decision of the Croatian Energy Regulatory Agency, but it is possible to initiate an administrative dispute at the competent administrative court.
In the event of rejection of the request to conclude a contract, the party has the right to lodge a complaint with the Croatian Energy Regulatory Agency.