Regulation on the criteria for conducting a public tender for the issuance of an energy permit in Croatia

In July 2023, the Regulation on criteria for conducting a public tender for the issuance of an energy permit came into effect. This marked the culmination of nearly two years since the enactment of the new Law on the Electricity Market, providing Croatia with a fundamental sub-legal act facilitating the development of new energy projects in the fields of electricity, heat, and cogeneration. The energy permit is an administrative act of the Ministry of Economy and Sustainable Development, based on which the construction, reconstruction, or revitalization of production facilities is planned.
This regulation has brought a significant change in the priorities and sequence of documentation development. Under the old law and the Regulation on criteria for issuing an energy permit for production facilities, the energy permit was generally obtained after obtaining the location permit. With the new law and regulation, obtaining the energy permit is now a step that immediately follows the development of the conceptual solution for the production facility. Obtaining the energy permit is now a prerequisite for the connection process to the distribution or transmission grid before the relevant operator (e.g. of operator – HOPS – Croatian transmission system operator).
The energy permit includes highly detailed information about the production facility, spatial coverage, utilized technology, the timeframe for project completion, obtaining the occupancy permit, and the connected power. This permit does not constitute a legal basis for entering into possession of the land where the facility is to be constructed, but it serves as evidence of legal interest for the purpose of obtaining the necessary permits for the construction of facilities for electricity production or energy storage. The energy permit is the foundation for registering renewable energy projects in the OIEKPP registry (abbreviation for register of renewable energy sources and cogeneration and privileged producers), subsequently enabling the project holder to obtain the status of a privileged electricity producer. Registration in the OIEKPP registry allows the project holder to participate in tenders for the allocation of market premiums and guaranteed purchase prices organized by HROTE (Croatian energy market operator), based on the Law on Renewable Energy Sources and High-Efficiency Cogeneration.
With the enactment of the Regulation on Energy Permits, the Republic of Croatia has eliminated a significant obstacle to the development of projects in the areas of electrical energy, thermal energy, and cogeneration. The criteria outlined in the Regulation on Energy Permits are clear and transparent, representing a progression compared to the previous process of issuing energy permits. The energy permit should serve as a substantial relief for entrepreneurs in the further development of projects, especially in terms of acquiring real property rights. In essence, this regulation greatly contributes to the development and increasingly prevalent construction and implementation of renewable energy sources, including offshore wind farms, their associated energy facilities and overall, all ORES.