The Croatian Renewable Energy Association (OIEH) is proposing a green tariff model for homeowners with their own electricity generation. It is aimed primarily at operators of solar systems who consume part of their self-generated electricity on site and feed only the surplus into the grid. Such homeowners also draw electricity from the grid when their own solar power is insufficient to cover demand.
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Such “prosumers” and their many small photovoltaic systems are placing a growing burden on the Croatian power grid. The proposal aims to reduce strain on the distribution network while creating incentives for grid-friendly operation. Tariffs need to be accordingly and precisely tailored to these operators, emphasised Filip Krušević of OIEH when presenting the model at this year’s Solarflex Croatia in Zagreb.
Utilities withdrawing
The proposed tariff responds to a twofold problem in the Croatian electricity market. "We are in a situation where numerous small generators with self-consumption are connected to the grid, and this places considerable stress on the distribution grid operator," said Krušević. "Moreover, ever more utilities are withdrawing from the residential customer business and no longer signing feed-in contracts with them. This is because, given the way the market is structured, it is simply not worthwhile for the utilities, making a dedicated green tariff for prosumers a necessary step.”
Building on dynamic electricity tariffs
The proposed model builds on existing European requirements. EU regulation already obliges utilities to offer dynamic tariffs, and the category of the active customer is now anchored in Croatian energy law. The proposal builds on this framework with a focus on solar system operators. The tariff is designed to penalise large feed-in volumes at times of grid surplus. “At the same time, the tariffs should be structured to directly reward grid-friendly behaviour,” Krušević said.
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A role for storage
Home storage systems play a key role. Krušević called for appropriate incentives to support battery deployment. “It would even be conceivable for someone to install only a battery without being a generator. The tariff should incentivise both this and grid-friendly operation of the storage system,” he said. He also pointed to the need to continue using price signals to shift electricity consumption more strongly into off-peak periods.
Accounting for regional differences
He stressed that the model should not be designed uniformly across the country. “It is crucial that there be a regional component,” the OIEH expert said. “Istria cannot have the same tariffs as other regions of Croatia, because the situation differs from one region to another.” Zagreb, for example, faces fewer challenges from small-scale feed-in, with fewer systems than in more rural regions or along the Adriatic coast. The detailed design will be developed by the regulator HERA on the basis of data from the distribution grid operator HEP ODS.
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In Krušević’s view, all market participants would benefit from the tariff, including utilities. “For the model to be accepted, it must above all be attractive to end customers,” he said. “If it eases operations for utilities and distribution grid operators, it must ultimately be structured so that it is also cheaper for end users than existing models.”
More room on the grid
Krušević also sees positive effects for further expansion of renewable energy. “This addresses the problem that in many locations there is not enough grid capacity to integrate new installations,” he said. As a result, more systems can be connected, accelerating deployment. This marks the next step after operators have increased their self-consumption.
For now, the green feed-in tariff remains an idea. Developing the detailed design is the next step, to be taken by utilities and HEP ODS as the responsible authority. (su)