Considering the specific factors that play into the electricity market, it was impossible to implement the usual market mechanisms in price trends, said Jelena Bukic, the head of the Tariff Department at EP HZHB
– To us, it would be a good measure to reduce the VAT and it is precisely the measure that most of the EU countries undertook in this crisis. However, it is interesting that seven countries had a lower VAT rate even before the crisis. There’s also Croatia, which had the problem of social prices and the research there showed that the VAT transfer was full. That means that the prices of electrical energy followed the reduction of the VAT, because the prices in the retail market were mostly regulated, and that is precisely the case in BiH as well.Croatia introduces aggregatorsAntun Andric, the assistant director of HOPS
(Hrvatski operator sistema) shared his experiences from Croatia and how they were trying to create a flexible system.
– System operators are always in a crisis, there is never enough money, the expectations are great, among other things, to be part of this transition, to ensure the system flexibility that everybody is talking about. At HOPS we see that a part of the solution are distributed sources of energy and distributed consumers and we have tried to include them in our market through the concept of aggregators. We have an aggregator of 10 MW, which brings together 15 purchasers, which then join HOPS and agree with it the conditions of flexibility, that is, the tertiary reserve. The system operator has to secure the reserve, and that is maintained by traditional producers, of whom there are less and less. Croatia is dominated by hydro power plants, which are dependent on hydrology factors. We see the concept of aggregators in the distribution network as an opportunity – pointed out Andric.
They have a limited price which is regulated and below that they allow market competition for power reserves.
Croatia has done couplings with Slovenia and Hungary and now has a stable wholesale electricity market.Admir Softic, the assistant minister for energy at the Ministry of Foreign Trade of BiH
, said that BiH was the only one in the region without a local electricity market. EP HZHB and EP BiH have expressed a desire to initiate that process and are ready, and ERS has said that they will support the idea if it is justified.
– We would have a volume of around 5 terawatt-hours in the BiH market, if it is established. The ministers will make the decisions, but the recommendations are for the market to be formed.
Let us remind that the 2022 Trebinje Energy Summit was held between March 16 and 18, organized by Elektroprivreda RS, the City of Trebinje and the company SET
.The eKapija portal was the media sponsor of the Summit
. You can read about the participants and the topics of the Summit HERE