Source: http://www.res-legal.eu/search-by-country/croatia/single/s/res-e/t/promotion/aid/tenders-sustav-poticanja-zajamcenom-otkupnom-cijenom/lastp/359/
Timestamp: 2019-04-19 14:15:13+00:00

Document:
Since 1 January 2016, renewable energy in Croatia is promoted through an incentive in the form of a guaranteed purchase price ("zajamčena otkupna cijena") after undergoing a tendering process.
Until 31.12.2015 renewable energies were supported through a feed-in tariff pursuant to the (now obsolete) Tariff System for Electricity Production from Renewable Energy Sources and Combined Heat Power (Tarifni sustav za proizvodnju električne energije iz obnovljivih izvora energije i kogeneracije). On 1 January 2016, the new Act on Renewable Energy Sources and High-efficiency Cogeneration came into force and introduced tenders, which offer guaranteed purchase prices for electricity produced in RES installations with a capacity of up to 500 kW.
Privileged producers ("povlašteni proizvođač", Art. 20 RES Act) of electricity from renewable energy sources have the right to the guaranteed purchase price, if the Croatian Energy Market Operator (HROTE) has selected them as lowest bidder in a public tender. The Market Operator issues a call for tenders at least once a year, if quotas for the support of certain technologies of renewable energies are available (Art. 34 § 1 and 2 RES Act).
The eligible installation must not exceed a capacity of 500 kW (Art. 33 § 1 RES Act). The classification of power plants by technology and source of energy are defined under the RES Promotion Decree. Art. 4 of the RES Promotion Decree differentiates between the size of projects across eligible technologies.
The amount of the guaranteed purchase price for the delivered net electricity is determined in the decision of the HROTE, which selects the lowest bidder in the public tender. Basically, the guaranteed purchase price does not change for the duration of the contract between the installation owner and the HROTE. However, the guaranteed purchase price of electric energy will be adjusted every year in relation to the established corrected guaranteed purchase price of electric energy from the previous year by applying the average annual consumer price index (Art. 35 § 6 RES Act).
The maximum guaranteed purchase price of electric energy will be determined by the HROTE based on the methodology of guaranteed purchase prices of electricity defined in the RES Promotion Decree.
As a precondition for being eligible for this support scheme, the plant operator as natural or legal person needs to acquire the status of a privileged producer ("povlašteni proizvožač"; Art. 19 § 8 RES Act).
In order to conclude a contract with the Croatian Energy Market Operator (HROTE) the privileged producer needs to take part in a public tender, which the HROTE will carry out, if the quota for the respective technology is available (cf. Art. 34 RES Act). All participants in the tender must submit the financial deposit in the amount of HRK 50 (approx. EUR 7) per kW of the planned capacity of the proposed project. The deposit will be given back to the applicant if the project is not successful in the tender or the applicant withdraws from participating in the tender (Art. 7 RES Promotion Decree). The successful applicants in the tender must submit the financial guarantee in the amount of HRK 300 (approx. EUR 40) per kW of the planned capacity of the proposed project.
The lowest bidding applicants will be selected by the HROTE through a decision and this project holder thereby acquires the right to enter into a contract with the Market Operator.
Pursuant to Art. 28 of the RES Act the government will issue a special decree on the determination of quotas for the promotion of electricity production from renewable energy sources for the period from 2016 to 2020. This Decree has not been adopted yet.

References: Art. 20
 § 1
 § 1
 Art. 4
 § 6
 Art. 19
 § 8
 Art. 34
 Art. 28