Implementation of the Third Energy Package and Renewable Energy Sources on Croatian Liberalised Market

The Croatian Third Energy Package was adopted in 2012 and its implementation in the previous period until today has accelerated changes in all areas of Croatian energy sector. The content of The EU's Third Energy Package was made in two directives and three regulations. Directives are implemented into national legislation of EU Member States (they choose the methods). Regulations are implemented directly in the entire EU. The main goal is to establish a unique electricity and gas market with market prices (or lower) and high safety and public service standards. Croatia began with incentives for generation from renewable energy sources in 2004 and by the end of this year, the first contract in that system (wind power plant Ravne on Pag island) will end. The question that presents itself is where and how will the owner sell electricity from now on. Current market suppliers as well as the new organisation in Croatian energy sector, Croatian Power Exchange, are both realistic options. Balancing market led by Croatian TSO is becoming bigger and participates in the business because of the higher amount of installed power connected to the power grid (mostly wind power plants). Can Croatian Transmission Operator still guarantee safe operational planning as before (the last blackout happened 10 years ago)? The existing electricity and gas market design doesn't satisfy its participants any more so an adjustment to new facts of a free market is necessary (power exchange, no more stimulations for renewable sources). What changes should be made in legislation so that the free market can develop and be harmonised with the European market? Decarbonization and digitalisation are a base of European energy policy but they are still waiting for a wider and stronger application in Croatia, is the current legislation enough? With these analysis the paper contributes to the learnings about the implementation of The Third Energy Package in Croatia and a unique energy policy in the EU.(author).