Author(s)

I. Androcec & T. Tarnik

Abstract

The topic of this paper is the impact of power system restructuring, electricity market introduction, and strengthening of the environmental protection legislation, especially regarding emissions from power plants. Competition in the generation and supply of power provides new business opportunities and strategic business alliances with partners at home and abroad, especially after the introduction of the Energy Community Treaty. A short review of the situation in Croatia regarding liberalization is presented. The analysis of possible variants of the establishment and development of market relations is made, as well as of the corresponding repercussions on short-term and long-term power plant operation and development. Electricity prices are still being regulated by the state and a small share of industrial consumers. Electricity consumption is around 17 TWh which is increasing, supplied by a relatively large share of hydropower plants. This has implications on the development of the power generation sector in Croatia as well as on electricity market operation. Environmental protection in the energy sector implies the primary action in connection with energy efficiency, renewable sources, choice of energygenerating products and application of state-of-the-art protection technologies, quality legislation and supervision, public opinion and education, and promotion of best practices. In this regard the National Environmental Strategy and National Environmental Action Plan has determined its long-term emission reduction objectives for the main air pollutants, in accordance with existing and future obligations related to mitigation of climate change. Hydropower plants and water reservoirs hold high potential for electricity production, but also pose the threat of changing water regimes and negative effects on eco-systems. Keywords: electricity market, power plants, environmental protection, Croatia.

Keywords

electricity market, power plants, environmental protection, Croatia.