Croatia is preparing a broad revision of its electricity-market legislation aimed at dealing with delayed renewable projects. The overhaul would also introduce new rules covering grid connections, electricity sharing, retail contracts and long-term power-market instruments. The changes are linked to issues affecting project timelines under existing connection arrangements.
Connection-fee delays and expiry of renewable approvals
One immediate problem concerns projects held up by uncertainty over connection regulation. Regulator HERA set the unit grid-connection fee only in May after a prolonged delay that prevented some developers from completing connection agreements. The timing of that decision is central to how deadlines would be handled under the proposed amendments.
According to the Croatian Renewable Energy Sources Association, 16 energy approvals totaling 711 MW were due to expire by the end of August. The proposed legislation would protect projects from losing approvals where the delay stemmed from regulatory circumstances beyond developers’ control. It would also create a basis for restarting certain deadlines tied to the connection-fee issue.
For projects specifically affected by the absence of the connection fee, relevant deadlines would begin from the date HERA adopted its decision. Developers whose approvals had already expired for the same reason would be able to apply again. Administrative delays in spatial planning or construction permitting could also support extensions.
Grid-connection transparency and deadlines for existing agreements
The proposed amendments are not limited to transitional relief. Distribution operators would be required to publish clearer information on available connection capacity and to apply transparent, non-discriminatory procedures. The framework would also address existing producer connection agreements that lack final completion deadlines.
Under the reform, producer connection agreements without final completion deadlines would have to be concluded within four years of the revised law entering into force. This requirement is intended to set a defined timeline for projects where completion terms are currently absent. It forms part of a broader set of changes affecting both access to the grid and contracting conditions.
Electricity sharing, retail contract options and wholesale-market instruments
The legislative package would introduce electricity sharing, enabling renewable generation including surplus rooftop solar to be distributed between consumers and within residential communities. Customers would gain access to a wider range of contract types, including fixed-term and fixed-price products as well as dynamic tariffs linked to wholesale prices. The sharing and retail elements are designed as part of the same market overhaul.
Wholesale-market provisions in the proposal would encourage greater use of power purchase agreements and two-way contracts for difference. Supplier risk-management obligations and national resource-adequacy assessments would also be incorporated into the framework. These elements would shape how long-term contracting and risk controls operate alongside grid-access rules.
The overall package links measures for delayed renewable projects with changes intended to affect grid capacity allocation, long-term contracting structures, consumer flexibility and security-of-supply considerations.
