1. Croatian Power System 1 The Electric Power System - Croatia -

2. Croatian Power System 2 Basic facts  Area: 56 542 km 2  Population: 4 284 889 (census 2011)  Number of electricity consumers: “There are more than 2.3 million electricity customers and/or metering points in Croatia.” (www.hep.hr)  Number of TSOs: 1  Number of DSOs: 1 DSO (21 distribution area)  Peak load: 3193 MW  Average interruption of electricity (2014): 60.3 min/interruption 2

3. Croatian Power System 3 Global map of the grid and of its interconnections 3  Interconnectors with:  Bosnia and Hercegovina;  Slovenia;  Serbia;  Hungary.

4. Croatian Power System 4 Grid facts and characteristics 4

5. Croatian Power System 5 Structure of electrical power system 5

6. Croatian Power System 6 Map of the high voltage grid 6 Source: HOPS

7. Croatian Power System 7 Information on TSO  Name: Hrvatski operator prijenosnog sustava (HOPS)  Network length 7240 km  Served area 56 420 km²  Annual transmitted energy (in 2014) 22.4 TWh  website: http://www.hops.hr 7

8. Croatian Power System 8 Cooperation of TSO and DSOs  Transmission and distribution Hrvatski operator prijenosnog sustava d.o.o. (HOPS - Croatian Transmission System Operator) and HEP Operator distribucijskog sustava d.o.o. (HEP ODS - Distribution System Operator) are providers of public services of electricity transmission and distribution, respectively, for the needs of participants in the Croatian market. Scope of HOPS and HEP ODS cooperation is defined by a national legislative, and corresponding agreements and contracts between two system operators. Hrvatski operator prijenosnog sustava d.o.o.HEP Operator distribucijskog sustava d.o.o. 8

9. Croatian Power System 9 Responsibilities of TSO (part 1) 9

10. Croatian Power System 10 Responsibilities of TSO (part 2) 10

11. Croatian Power System 11 Responsibilities of DSO 11  HEP Operator distribucijskog sustava d.o.o. (Croatian DSO) is responsible for control, maintenance and development of medium and low voltage networks. HEP Operator distribucijskog sustava d.o.o.

12. Croatian Power System 12 Power structure of the country 12

13. Croatian Power System 13 Energy production with reference to primary ressources  Electricity generated (TWh), year 2014 13 Nr.Primary SourceInstaled capacity (GW)Electricity generated (TWh) 1. Biomass0.0080.05 2. Coal0.3252.137 3. Gas0.4960.444 4. Hydro power2.1128.326 5. Mixed (gas and oil)0.6290.346 6. Oil0.320 7. Solar power0.0340.035 8. Wind power0.340.73 9. Others0.0290.114 10. Total4.29312.182

14. Croatian Power System 14 Comsuption per customer groups 14  Electricity consumption classes and indicative peak power for the consumers from rhe category ''Entrepreneurship'' in accordance with EUROSTAT Nr. Electricity consumption class Minimal consumption [MWh/year] Maximal consumption [MWh/year] Lowest value [kW] Highest value [kW] Entrepreneurship - Total values Consumption (%) Number (%) 1. Ia_ <20 5209.779.4 2. Ib20 <500 1035029.519.3 3. Ic500 <2 000 2001 50011.60.7 4. Id2 000 <20 000 80010 00021.70.5 5. Ie20 000 <70 000 5 00025 00020.70.1 6. If70 000<=150 00015 00050 0006.80.0 Source: HEP-ODS and HOPS

15. Croatian Power System 15 Location of renewable energy sources 15

16. Croatian Power System 16 Data about renewable energy sources 16 Nr.Technology Number of plants Instaled power (MW) 1.Solar102233,52 2. Small hydro (<= 10 MW) 61,48 3.Biomass47,69 4.Biogas1212,14 5.Wind16339,25 6.Waste gas24,54 7.Cogeneration513,29 8.Total1067411,90

17. Croatian Power System 17 Development of wind power 17

18. Croatian Power System 18 Development of photovoltaic power 18

19. Croatian Power System 19 RES installed capacity and production 2014 19  Energy produced by paticular technologies in 2014 (Source: HROTE) Nr.Month Wind power plants Hydro power plants (<= 10 MW) Solar power plants Biogas power plants Biomass power plants Waste gas power plants Mikro- cogenera tion (<= 50kW) Small cogenera tion (from 50 kW to 1 MW) Medium cogenera tion (from 1 MW to 35 MW) Total (GWh) 1.January62,890,680,727,453,700,00 0,350,0075,80 2.February69,980,671,176,653,930,000,010,390,0082,79 3.March60,250,762,917,453,960,440,000,380,0076,17 4.April48,680,723,317,294,071,090,010,350,0065,51 5.May36,960,864,547,114,291,320,010,320,0055,41 6.June41,810,774,857,104,361,270,000,230,5060,88 7.July76,040,754,837,464,400,980,000,280,3695,09 8.August38,320,764,527,533,651,190,000,200,2956,45 9.September46,650,722,906,874,391,240,000,210,3863,37 10.October51,010,772,527,964,561,310,000,290,3468,76 11.November67,400,751,567,474,471,170,010,29 83,41 12.December129,990,801,357,574,361,000,010,270,25145,61 13.Total for 2014729,979,0135,1787,9350,1611,000,043,562,42929,26

20. Croatian Power System 20 Price development for households and industry consumers (‘’entrepreneurship’’) 20 Average electricity prices for terminal consumers (kn/ kWh) (exchange rate: 1 € ≈ 7.5 kn ) Category of terminal consumer Year 2008200920102011201220132014 Consumers at medium voltage0.490.58 0.610.600.58 Consumers at low voltage (Entrepreneurship) 0.640.720.740.730.790.780.75 Consumers at low voltage (Households) 0.640.70 0.780.820.79 Source: HEP-ODS

21. Croatian Power System 21 Electricity market organisation (part 1)  The framework for performing energy activities in the electricity market is established by energy related acts, while secondary legislation elaborates legal provisions. In Croatia we distinguish: 1° public service obligation of tariff customers' electricity supply, 2° electricity market.  According to the Electricity Market Act, tariff customers are supplied by the energy entity having public service obligation of tariff customers' electricity supply. This task is performed by HEP Group. Electricity prices for tariff customers are regulated by the Energy Act and the Tariff System for Energy Activities Performed as Public Services. The number of tariff customers shall decrease by gradual market opening. (Source: HROTE) 21

22. Croatian Power System 22 Suppliers Traders MARKET PLAN DAY-AHEAD POWER SYSTEM PLAN TSO Eligible customers Market Operator Tariff customer supplier electricity trade contract network contract supply contract contract and schedule submission schedules Tariff customers DSO Producers Electricity market organisation (part 2)

23. Croatian Power System 23 Power balance in 2014  Generation (TWh)  Consuption (TWh)  Imports (TWh)  Exports (TWh)  Losses (TWh) 23 Nr.Electricity balanceEnergy (GWh) 1. Total generation12 192 2. Import10 899 3. Total supply (1. + 2.)23 091 4. Export6 227 5. Physical net import (2. – 4.)4 672 6. Total consumption (3. – 4.)16 864 7. Supply from distribution network544 8. Losses430 9. Consumption of transmission network (6. – 7. – 8.) 15 890 10. Delivery to the terminal consumers at high voltage (110 kV) 746 11. Pumps and other own consumption171 12. Delivery to distribution network from transmission network (9. – 10. – 11.) 14 973 13. Transit (min (2., 4.))6 227

24. Croatian Power System 24 Energy exchanges in ….  Commercial flows (2014) 24

25. Croatian Power System 25 Energy exchanges in …. 25  Physical flows (2014)

26. Croatian Power System 26 Specific aspects of the electricity market  Bilateral Day-ahead and Intraday Market  Coordinated Cross-border capacity allocation:  HR-SI and HR-HU border: JAO (Joint Allocation Office) Luxembourg  HR-BA: SEE CAO (South East Europe Coordinated Auction Office) Podgorica, Montenegro  HR-RS: bilaterally organized by HOPS and EMS, TSOs in Croatia and Serbia, as allocation offices  Power Exchange established in 2015  Operational from December 2015  Market coupling to be introduced in the Q2/2016 26