Based on the regulatory framework for the implementation of the Guarantees of Origin system in the Republic of Croatia, CROATIAN ENERGY MARKET OPERATOR Ltd. (HROTE) is responsible for issuing Guarantees of Origin of electricity and for operating a Registry of Guarantees of Origin in the Republic of Croatia. In 2014, Croatian Registry of Guarantees of Origin was established and a full implementation began in February 2015, when the first users were registered in the Registry.

In accordance with the Law on Renewable Energy Sources and Highly Effective Cogeneration (Official Gazette 138/21), HROTE, as a leader of the ECO Balance Group for the incentivised electricity production, from the beginning of 2019 started to sell a part of the energy produced on trading platforms of CROATIAN POWER EXCHANGE Ltd. (CROPEX).

By switching to the market-based sales of electricity, the possibility of establishing a system for the sales of Guarantees of Origin was opened, precisely for the electricity produced by the incentivized eligible producers and sold on the CROPEX markets by HROTE. Guarantees of Origin for the electricity produced in the power plants concerned are being issued within the Croatian Guarantees of Origin Registry and sold to the market participants on the market-based principles, i.e. through Guarantees of Origin Auctions.

According to the agreement between HROTE and CROPEX, Guarantees of Origin are sold on Guarantees of Origin Auctions that are organised by CROPEX, using specially developed IT auction trading platform. After the Auction is successfully completed, raised funds from the Auction are transferred to the incentivised system fund, while sold Guarantees of Origin are transferred from HROTE’s account in the Guarantees of Origin Registry to the Auction participant’s user accounts.

From March 2023, CROPEX, in addition to conducting Auctions of HROTE's Guarantees of Origin, offers Auction Participants the opportunity to participate in Auctions of Guarantees of Origin outside the incentive system. Before each auction, the Auction Participants will be informed about the specification of the Guarantees of Origin for which the Auction is being organized. After the conclusion of the Auction and the successful sale of the Guarantee of Origin, the collected funds are transferred to the seller, while the Guarantees of Origin sold at Auctions are transferred from the seller's user account to the user accounts of the Auction Participants.

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