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Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference on Sustainable Development of Energy, Water and Environment Systems STORIES Project workshop

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Page 1: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Organization of the electricity market and

renewable energy sources in the Republic

of Croatia"

Dubrovnik, 2nd October 2009

5th Dubrovnik Conference on Sustainable Development of Energy, Water and Environment Systems

STORIES Project workshop

Page 2: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Contents

Basic company data

Electricity market model

Incentives scheme for electricity production from renewable energy sources and CHP in Croatia

Integration of RES in electricity market model

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 3: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Scope of activities

Electricity market organization

Natural gas market organization

Incentivizing electricity production from renewables and cogenerations

Incentivizing production of biofuels

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 4: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Basic organizational scheme

General Manager

Assistant General ManagerInformation and

Communication Technology Department

Secretariat

Electricity Market Department

Renewables and Cogeneration Department

Economic, Legal and Personnel Department

Gas Market Department

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 5: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

The Energy Act (Official Gazette 68/01, 177/04 & 152/08)

The Act on the Regulation of Energy Activities (Official Gazette 177/04 & 76/07)

The Electricity Market Act (Official Gazette 177/04, 76/07 & 152/08)

Secondary legislation

Legislative framework

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 6: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Croatian Power System-Basic Data

Source: Energy in Croatia, Ministry Annual Energy Report, 2007

Gross consumption18 TWh

Maximum load3098 MW

Source: www.hep.hr/ops

(50%)

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 7: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Based on electricity trading via bilateral contracts

Contractual parties in the bilateral contract for electricity supply are an eligible customer and a supplier

Bilateral electricity trade contracts are concluded between a supplier, a trader or a producer

Settlement and charging the difference between contracted and delivered energy according to Rules on balancing the electric power system and Methodology on providing balancing energy services in the electric power system

Market model

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 8: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Suppliers

Traders

MARKET PLAN

POWER SYSTEMOPERATION PLAN

TSOEligible

customers HROTE

Tariffcustomers

supplier

Tariffcustomers

DSO

Producers

Incentivized RESCO

electricity trade contract

network contract

supply contract

contract and schedule submission

plans

Croatian electricity market

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 9: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Entering into contracts with all suppliers to comply with the decree on the minimum share of electricity produced from renewable energy sources and cogeneration,

Collecting funds from the charge for incentivizing renewable energy sources and cogeneration from the suppliers,

Entering into contracts with eligible producers entitled to incentive price,

Settlement, collection and allocation of funds from the charge for incentivizing renewable energy sources and cogeneration onto producers of electricity from renewable energy sources and cogeneration based on the contracts entered into

Legal obligations – RES&CHP

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 10: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Current situation...

There are 16 contracts that have been signed in HROTE so far:

Wind Power Plant 17 150 kW

PV Plants 16,14 kW

SHPP 30 kW

Biogas 1 000 kW

Wind Power Plant 52 654 kW

PV Plants 28,9 kW

production

construction

Planned projects ( approx. 5 102 GW):

...and future projects

Wind Power Plant 4 830 850 kW

PV Plants 9 114 kW

SHPP 158 382 kW

Geothermal 4 710 kW

Biomass 61 669 kW

Biogas 25 745 kW

CHP 40 183 kW

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 11: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Incentive price

Consumer

TSO/DSO

ELIGIBLE PRODUCER

SUPPLIER

Pro

du

ce

d R

ES

CO

-Efe

d i

nto

th

e g

rid

Data of electricity consumed

Me

as

ure

d R

ES

CO

-E

Power purchase contractT

he

bil

l fo

r R

ES

CO

pro

du

ce

d e

lec

tric

ity

Th

e b

ill

for

inc

en

tiv

e f

ee

Data of electricity consumed

Data of measured RESCO-E

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Colection and allocation of incentive fee

Page 12: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

The example of distribution RES-E (WPP)

WindPowerPlant

HROTE HEP-TSO (balancing in real time)

CUSTOMERS

1MWh

1MWh

1 MWh60€

60€ 36€

96 €/MWh

6 €

42 € (the incentive fee)

1MWh

SUPPLIERS

+

42€

60 € (the price of RES & CHP electricity )

Page 13: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Power load

Balancing of RES electricity

hours

Produced RES electricityElectricity based on contracted schedule

Balancing energy

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 14: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

TSO/DSO

RES PRODUCER

Pro

du

ced

RE

S-E

fed

in

to t

he

gri

d

HROTE(“competent body”)

The Registerof GoOs

Project -Implementation of the GoO System in Croatia

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 15: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Feed-in tariffs model is the best solution for early phase of development of RES market because it creates “safe” environment for investors

Regulated mechanism for RES is suitable for current status of electricity market development (lack of competition)

Complex administrative procedures should be simplified especially for small and micro generation

Precise determination of costs caused by intermittent generation and covering expenses to balancing energy providers are necessary for integration of large scale WPP

Conclusion

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Page 16: Organization of the electricity market and renewable energy sources in the Republic of Croatia" Dubrovnik, 2 nd October 2009 5 th Dubrovnik Conference

Dubrovnik, 2nd October 2009 STORIES Project Workshop

Thank you for your attention

Presenter:

Leo Prelec, B.Sc.E.E.General Manager

Croatian Energy Market Operator

[email protected]

+385 1 63 06 700

+385 1 63 06 777

[email protected]

www.hrote.hr