The Energy Act and the Electricity Market Act create the fundamental conditions for an electricity market in Croatia. Preparing and adopting Electricity Market Rules and other secondary legislative acts have created the condition for the operation and gradual opening of the market.
There are two electricity markets in Croatia. Initially, the selected model was a bilateral market model in which electricity trading is carried out under bilateral contracts which are concluded between electricity market participants. By changes of Electricity Market Act the concept of balancing groups was introduced which enabled portfolio optimization of subjects grouped in a single balance group. Second electricity market is organized electricity market carried out by CROATIAN POWER EXCHANGE Ltd. (CROPEX).
The law provides for a gradual dynamics of opening electricity markets in the Republic of Croatia. The market is completely opened as from 1 July 2008.
A market participant in the Croatian electricity market is any producer, supplier, trader or eligible customer. A producer, supplier and trader must have a license for performing energy activity, issued by the Croatian Energy Regulatory Agency (HERA) and sign Electricity Market Participation Agreement with HROTE.