Limit Price for Natural Gas for the Generation of
Heat and Electricity in Croatia’s Electric Power
System
The main tasks within the project concern the provision of consulting services to
HEP Generation. Their scope is to recommend an acceptable natural gas price for
thermal power plants. The said price would ensure the competitiveness of the
natural gas fired thermal power plants in a liberalised market environment in the
Republic of Croatia.
The project determined technical and economic relations in electricity and heat
generation in HEP’s existing generation facilities and analysed the modalities of
natural gas supply. In addition, the structure of transmission and distribution costs
were taken into consideration, and a market price for electricity and heat for
Croatian consumers was analysed.
A generation and cost distribution model for a specific facility was developed on
the basis of the results of the analyses. This model enabled the analysis of the
acceptable fuel price in relation to the assumed price on the market.
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