42. Electricity Market and Hydropower in Transitional Countries: The Example of Croatia Goic R., Lovric M., Curkovic A. (Proceedings, Hydro 2003, Vol. I, Croatia, pp. 421–427). Abstract The topic of this paper is an impact of power system restructuring, electricity market introducing, and privatisation of state owned utilities on hydropower sector in transitional countries, examined on the example of Croatia. A short review of common characteristics of deregulation process in transitional countries is presented in the text, as well as the detailed description of the situation in Croatia. The analysis of possible variants of market relations establishing and development is made, as well as of the corresponding repercussions on short-term and long-term hydropower operations and development. Also, the problem of privatisation of hydroelectric sector is examined. Hydroelectric sector often represents a marginal aspect of privatisation in transitional European countries because of a small contribution of hydropower, but not necessarily always. In countries like Croatia, with an average 50% of electric energy production from hydropower, the privatisation mode of hydroelectric assets is very important. Moreover, it is probably the key part of power system restructuring and privatisation process in such countries. The life of hydropower sector in the era of competition is dramatically changing. New economic mechanisms and the legal and regulatory framework in electricity sector is being established in practically all countries in the world, as well as in former European socialist countries. The inherited conditions and work specifics require not only very careful analysis of the current experiences in the more developed industrial countries, but also an avoidable adaptation in the interest of preserving competitiveness and providing for the future development of hydropower sector, as well as for generally wider social interests, which result from the usage of natural water resources for electricity production. Unfortunately, according to the opinion of the authors of this article, in Croatia there is being paid so little attention to the influence of the reform of power system industry on hydropower sector, whose annual output, calculated on the basis of the average European electricity prices, amounts to circa 1.5% of Croatia GDP. Whether it is the result of the closeness of the sector, political will, or something else, it is difficult to answer. In any case, we should hope that hydropower sector would however remain the winner at the end of the transitional period, and that the market conditions, because of all real technological and economic advantages of hydro plants, will however contribute to its further development. Top Keywords Power system restructuring, Electricity market introducing, Privatisation, Hydroelectric assets. Top |