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Renewable energy in Croatia - The rapid increase in recent years

The renewable energy market has seen a rapid increase in recent years in Croatia. An improved feed-in tariff system which made investing in renewable energy more attractive to entrepreneurs or financiers boosted both the installed capacity and the generated electricity from renewable energy. At present, under the Croatian feed-in tariff system, the installed capacity of about 400 MW is capable of producing about 800 GWh of renewable electricity per year. This generated renewable electricity represents only 5.2% of the annual final electricity consumption in Croatia. Ranked by installed power capacity, the number one renewable energy source in Croatia is wind energy with 354 MW, followed by biomass and biogas with 17 MW, cogeneration with 12 MW, solar photovoltaics with 7 MW and small hydro with 3 MW. To keep up with the running expenditures within the feed-in tariff system, the incentive fee for renewable electricity generation increased fivefold in 2013. At the moment, end consumers support the renewable electricity generation with about 5% of the paid value of electricity. This incentive fee is expected to follow the increase of renewable energy capacities in Croatia and will present an additional financial burden to electricity consumers. On the other side, the solar thermal market is having a slower progress mainly due to smaller subsidies in this field. By the end of 2013 the totally installed solar thermal surface in Croatia was 185.000 m2 or 44 m2 per 1000 inhabitants which is number still modest compared to the EU-28 average which amount to 85 m2 per 1000 inhabitants.

renewable energy in Croatia ; feed-in tariff system ; incentive fee

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