CROATIA AND ELECTRICITY TRADING IN CENTRAL EUROPE

Abstract

This article will discuss electricity trading in Central Europe, with particular emphasis on Croatia. Croatia is a terminal and also a transit hub: a unique combination on the Central European electricity market. It will be explained how cross-border capacity auctions influence prices on the Central European electricity market, followed by a discussion about the most important factors that are significant for Croatia’s electricity trading strategy. Finally, the article will describe the current HEP electricity tendering process and make some recommendations for possible improvements in the future.