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Croatia

( Last update: March 2006 )

Electricity Market
Sector structure
Upstream 100% state–owned Hrvatska Elektroprivreda d.d. (HEP Group) is the legally-unbundled entity owning electricity subsidiaries.

HEP Proizvodnja d.o.o. (HEP Generation ltd.) largely dominates generation: it owns all hydro facilities (21 HPPs as well as punping station Buško Blato d.o.o.) and 8 TPPs (as well as TPPs on the territories of Bosnia-Herzegovina and Serbia).

Other players in generation are TE Plomin d.o.o. (co-owned by HEP Generation and RWE Power) and Krško nuclear power plant (50% owned by HEP). Imports from HEP-controlled.

Hrvatski nezavisni operator sustava i tržišta d.o.o. is the Croatian Independent System and Market Operator (CISMO).
Networks HEP - Operator prijenosnog sustava d.o.o. (HEP Transmission ltd.) is the legal entity with public service obligation as transmission system operator (TSO), according to Regulated TPA model. The national grid is organised in four transmission areas and network centres: Zagreb, Osijek, Opatija and Spit.

HEP Distribucija d.o.o. (HEP Distribution ltd.) has public service obligation as distribution system operator (DSO) in Croatia.
Downstream One distribution company, HEP Opskrba d.o.o. (HEP Supply ltd.), responsible for supply to tariff customers.

Eligibility level set by the Electricity Market Act at 9 GWh/y since July 2006.
Gas Market
Sector structure
Upstream Domestic extraction accounts for 60% of demand.

One production company, INA-Naftaplin, owned by Croatian Government and Hungarian Oil & Gas Company plc (MOL, owning 25%+1 share of capital).

Production sharing agreements with Italy's ENI for exploitation of off-shore fields (Ivana, Marica and others) in the Adriatic Sea.

Remaining demand met by import from Russia on the basis of long-term contracts. Import contracts under negotiation with MOL.
Networks 100% state-owned Plinacro d.o.o., unbundled from INA in 2003, acting as gas transport company throughout Croatia on negotiated TPA basis.
Downstream 38 Distribution and supply companies. Rapidly growing demand, especially by new gas generation plants. Eligibility level set by the law at 100 million cm/y. Major eligible customers are HEP, Petrolkemija, Pliva and distributors.
Current issues Ongoing restructuring of the energy sector. Privatisation of INA is under way. HEP privatisation planned for the near future: by Law, at least 51% of HEP shares to remain in Government hands until accession to EU.

Gradual opening of energy market and integration into the EU and regional market. Full electricity market liberalization expected in July 2008 (July 2007 for commercial customers). No explicit timetable for natural gas market opening: government plans to fulfil EU membership criteria within the end of 2006.

Promotion of energy efficiency and use of renewable sources in the National Energy Program.

Harmonization of the energy policy according to the European Union Directives and in line with REM.

Increase of generating capacity, especially natural gas-fuelled plants, and interconnections.
National Legislation
Sources IERN staff on publicly available information