EC approves Croatia's 783 mln euro scheme to aid power output from RES

The European Commission (EC) said on Thursday it has approved Croatia's 783 million euro ($886 million) scheme to support production of electricity from renewable energy sources (RES).

“The measure will help Croatia reach its renewable energy targets, including those set in its Recovery and Resilience Plan, and contribute to the European objective of achieving climate neutrality by 2050, without unduly distorting competition in the single market,” the EC said in a statement.

The approval concerns a new scheme that the Adriatic country plans to introduce to support electricity produced from wind, solar, hydro, biomass, biogas and geothermal power plants. Under the scheme, the aid will take the form of a premium to the electricity market price.

The premium will be set through a competitive bidding process and will not be higher than the difference between the average production cost for each renewable technology and the electricity market price. The beneficiaries will be selected in tenders that will take place in the period from 2021 to 2023. The measure, which has a total budget of some 6.0 billion kuna ($901 million/798 million euro), will be open until 2023. The aid will be paid out to the selected beneficiaries for a period of 12 years.

($=7.530 euro)

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