The Croatian Chamber of Economy (HGK) and its Renewable Energy Association report that around 40 renewable energy projects are currently stalled in Croatia. The recent exit of a major foreign investor has raised concerns about the prospects of improvement in the near future.
Despite the existence of relevant laws, some necessary implementing regulations are still missing. Additionally, there is a lack of coordination between different ministries and institutions. While one authority may grant approvals, others impose additional requirements, slowing down the process. Regarding project financing, while the perception exists that there are insufficient funding sources or unfavorable investment conditions, renewable energy investors in Croatia are facing a more specific challenge: uncertainty about basic costs, such as network connection fees, which have been unresolved since 2022. This uncertainty obstructs planning, financing, and project execution, hindering the entire sector, according to Marija Sculac, Director of the Industry and Sustainable Development Sector at HGK.
Sculac emphasized that the primary challenge is the network’s capacity, aging infrastructure, and the lack of sufficient funding for modernization. Currently, approximately 4,000 MW of renewable energy is connected to the grid, with contracted capacities exceeding 3,000 MW, leading to network overloads. More than 50% of the transmission infrastructure has exceeded its expected lifespan. The National Energy and Climate Plan (NECP) aims to integrate an additional 4,800 MW by 2033, but this requires urgent investments, and the NECP’s minimum requirement of 2.3 billion euros by 2030 is still far from being met. Although Croatia’s electricity transmission system operator, HOPS, and the electricity distribution system operator, ODS, are increasing investments, they still fall short of the actual needs.
While there are plans to expand capacity and stabilize the grid, the implementation is progressing too slowly. As a result, Croatia risks a situation where even completed renewable energy projects will be unable to operate at full capacity, Sculac warned.
HGK advocates for more flexible integration through energy storage, decentralized production, and network adaptation. Sculac concluded that changes are urgently needed in Croatia’s approach to investors and how the electricity network is managed. Without these adjustments, further growth in the renewable energy sector and a reduction in energy imports will be impossible.
