INTERVIEW - Nano Energies to add 20 MW of flexible capacity in Croatia in 2024

Virtual power plants are designed to solve a supply-demand mismatch, storing excess power and feeding it as needed to the grid.

"With more and more solar and wind farms coming online, which have unpredictable output, Nano Energies expects a much greater need for aggregator services that will be able to offer the necessary stability to the power system," Dominik Maricevic said in an emailed interview with SeeNews.

In Croatia, Nano Energies’ virtual power plant, the first Croatian company licensed by the national energy regulator HERA to perform energy aggregation activities, started operations in 2023 with 20 MW of flexible capacity. Now, some 20 clients, mostly biogas or biomass producers, provide total flexible capacity of more than 30 MW.

“As an aggregator of flexibility, our pivotal contribution lies in upholding the stability of the energy system. This becomes especially significant as we witness the growing integration of an expanding array of renewable sources into the grid. In essence, our role extends beyond mere participation; it encompasses a proactive commitment to ensuring the resilience and reliability of the evolving energy landscape,” Maricevic said.

Croatia's energy development strategy for 2030 aims to increase the share of gross direct electricity consumption from renewable sources to 36.6%, up from the initial level of 27.3% recorded in 2016-2017.

In its 2021 recovery plan, the country aims to increase renewable energy sources significantly from 2026 to 2030 as part of decarbonisation efforts. The goal is to develop infrastructure to connect at least 1,500 MW of national renewable energy potential by 2025 and establish over 2,500 MW of new power plants for renewable electricity generation by 2030.

Last year, Croatia added 238.7 MW of solar capacity to its national power system. As of January 1, the country had a total of 462.5 MW of operational solar capacity, according to the renewable energy sources association. In the wind power sector, the combined installed capacity of all wind farms amounted to 1,160 MW.

Nano Energies manages over 150 MW of capacity. Founded in 2008, the Czech company helps businesses efficiently handle electricity by flexibly managing consumption and energy production. It is currently building virtual power plants in the Czech Republic, Croatia, and Romania. In December 2023, Czech technology group Second Foundation became the sole owner of Nano Energies.

Maricevic believes achieving decarbonisation will be a lengthy jorney for the EU. The speed of this process depends on various factors beyond the energy sector, such as changes needed in industry, transportation, households, agriculture, and food processing. Renewable energy sources will play a crucial role in the transition to low-carbon energy. Maricevic emphasizes the need for an innovative approach from technical, social, and political perspectives. Long-term development and organisation of the energy market are essential, ensuring necessary changes occur in a competitive economy without jeopardizing energy supply security, he added.

Nano Energies now provides tertiary regulation services (mFRR+/-) to clients in Croatia. The company aims to introduce its software to the Croatian market, supporting the management of more complex products like secondary regulation (aFRR+/-). This should help clients enhance the efficiency of their energy capacities and reap greater benefits.

The company's growth is driven by the increasing use of renewable energy sources, which is causing network instability, Maricevic explained.

He said that he is unable to provide financial details about the company’s operations in Croatia at this point.