The Government of Croatia has adopted the amendments to the law on renewable energy sources and high-efficiency cogeneration. They change rules for consumers producing electricity for self-consumption, facilitate the establishment of citizen energy communities and regulate decentralized energy production.

The amendments align the Croatian legislation with the European Union’s Renewable Energy Directive and bring benefits to citizens, entrepreneurs, and investors, the Ministry of Economy said.

One of important innovations is a new scheme for the production of energy for self-consumption. Instead of the current net metering mechanism, the new law introduces net billing. It values more fairly the surplus electricity that prosumers deliver to the grid, according to the ministry.

The grid costs charged to prosumers will be aligned with the actual amount of electricity that they take from the grid

Consumers – citizens and entrepreneurs that produce energy for their own needs, will pay grid costs matching the amount of electricity they actually take from it, enabling a sustainable and fair system for all users, the ministry added.

Existing prosumers will have ten years for the transition to the new scheme.

The bill enables the production of electricity for self-consumption in remote locations, provided that all metering points are registered with the same consumer. The ministry expects the measure to pave the way for greater investments, flexibility, and decentralized energy production.

Waste separation is a condition for granting incentives for waste incineration

The rules for establishing citizen energy communities have been simplified, to further strengthen their role in the energy transition. The amendments stricten the criteria for the sustainability of biofuels and they prohibit incentivizing the incineration of waste not from a system of separate collection.

The upcoming law sets the basis for a plan for the development of electricity infrastructure and storage capacities. It will create the conditions for greater integration of renewable energy sources into the grid, the ministry stressed.

“With this law we are taking an important step forward in the energy transition, ensuring a balance between the interests of citizens, the economy, and the energy system, and creating the foundations for a sustainable development of the Croatian energy sector in the long term,” Minister Ante Šušnjar stated.