engleski

Financial incentives for RES penetration in Croatia: The Role of Environmental Protection and Energy Efficiency Fund

The most important barrier for stronger RES penetration is in their high up-front costs, which are still quite above those of conventional energy sources. Apart from favourable legislative framework, there is a strong need for financing mechanisms that will trigger more investments in renewable energy sources. Until recently only commercial loans were at disposal for RES projects in Croatia. The situation has changed by establishing the Environmental Protection and Energy Efficiency Fund, which can offer incentives for RES instalments not covered by tariff system for electricity produced from RES and cogeneration facilities. In this paper the main characteristics of the Environmental Protection and Energy Efficiency Fund will be presented. The Fund’ s organisation, activities, sources of funding and allocation of financial means will be described. Special attention will be given to the possibilities for financial support of renewable energy sources projects and planned investments in these projects. It still remains to be seen whether the Fund will act according to its work plan and enable more RES project implementations.

renewables; financial incentives

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