Electricity market design in Croatia within the european electricity market-recommendations for further development

Abstract

One of the most important objectives of the European Union is the creation of an Internal Electricity Market (IEM) in Europe. Various national electricity market designs represent one of the major obstacles to the creation of IEM and it is necessary to coordinate national market designs among Member States in order to achieve that. Therefore, this paper gives a comprehensive overview of the electricity market design according to laws related to the electricity sector that are in force in Croatia. Additionally, the paper identifies key obstacles that hamper the development of a well-functioning electricity market in Croatia towards its further integration into the IEM. Since Croatian Power Exchange (CROPEX) is not coupled with any other power exchange, special attention was given to necessary prerequisites for market coupling with the Slovenian Power Exchange (BSP SouthPool) and with the Hungarian Power Exchange (HUPX).