Feed in market premium

Country Croatia
Influence of the
financing instrument
Thematic Scope electricity generation or consumption suitable for coupling with P2G hubs
Type Other
Legal/Financial Form minimal guaranteed price by law

In Feed in market premium subsidies based on the energy produced multiplied by the positive difference between contracted tariff and average monthly tariff for electricity on CROPEX day ahead market. If the difference is negative power producer keeps the incomes. Possible usage of the funding instrument in the P2G context: Electric energy from RES facilities established by this mechanism may be used for producing green hydrogen, which is a significant input for P2G and RES plant determines the amount of electricity that will be sent to the grid, and what can potentially be used as a surplus. P2G and green hydrogen will become a very interesting option after the subsidization period for the RES facilities ends. The new Law on RES and CHP is in the final phase of preparation. As it is aligned with RED II directive, RES plants will have the right to skip the electricity supplier and directly contract electricity sale with any natural or legal person, which in this case may be P2G company.

Legal Entity Hrvatski regulator tržišta energije (HROTE)
Croatian Energy Market Operator (CEMO)
Geographic Scope Entire Croatia
Eligibility Criteria Selection on a tender procedure in which the offered bid refers to contracted price. Valid bid, among other papers, must have a location or a building permit, grid connection consent and a financial guarantee for proving that the project will be developed.
Co-Financing Rate Entire eligible payment amounts (assessed based on metering and previously determine amount of produced electricity) are paid to the plant owners (difference between the contracted price and market price) .
Volume The volume of Feed in market premium and Feed in tariff is determined by CEMO each year, based on the quotas for RES which are defined by the RES goals for RES share in 2030.
Duration The duration of the subsidy is maximum 12 years.
Limitations Subsidy is limited by the aforementioned quotas. Multiple subsidies are allowed, but are in that case revised and individually reduced to a reasonable level.
Periodicity thus far Yearly (determined by CEMO).
Web Address https://www.hrote.hr/