LNG importer Croatia is receiving European Commission aid to help the Balkan state that was formerly part of the former Yugoslavia to provide transmission system operators (TSOs) with balancing services.
The Commission approved, under EU State aid rules, a €19.8 million ($19.9M) Croatian aid measure in favour of energy storage operator IE-Energy, headquartered in Rijeka, Croatia.
The measure is aimed at helping IE-Energy to partially finance the procurement and the installation of grid-scale batteries to provide transmission system operators (TSOs) with balancing services.
“Furthermore, the measure contributes to the modernisation of Croatia's energy network, as well as to increasing the country's and the EU's energy security of supply,” added the Brussels-based European Union’s executive body.
LNG expansion
The grant comes as the Croatian Government is planning to invest €180M in a new gas pipeline section that would help double capacity at its LNG floating storage and regasification unit located off the Adriatic Sea island of Krk.
Croatia, which became a member of the EU in 2013, received its first LNG cargo in January 2021 at the FSRU, the “LNG Croatia”.
Under government plans, a €155M gas pipeline extension will connect Zlobin and Bosiljevo in northwest Croatia in about three years’ time when the FSRU’s capacity will be boosted to 6.1 billion cubic metres per annum of regasified LNG from the current 2.6 Bcm.
The Commission said its TSO grant for balancing would further contribute to the modernisation of Croatia's energy network, as well as to increasing the country's and the EU's energy security of supply.
“The aid was also is proportionate as it is limited to the minimum necessary, and that it will not have undue negative effects on competition and trade between member states,” it added.
