Overview
According to Eurostat, gross primary energy consumption in Croatia in 2021 was 9.61 Terrawatt hours (TWh) and final energy consumption was 8.1 TWh. Renewable energies account for 31.33 % of Croatia’s energy mix, with 53.47% of total electricity production coming from renewables, primarily large hydropower plants. Croatia imports about 54.54% of the total energy consumed annually: 74.48% of natural gas, 78.34% of oil and petroleum products, and 100% of its solid fossil fuel needs. Croatia also co-owns the Krsko nuclear reactor in Slovenia, which is included in its energy mix as imported electricity.
In order to become energy-independent and sustainable, Croatia counts on its abundant renewable energy resources. In February 2020, the Croatian government adopted a new Energy Strategy for the period until 2030, with an outlook through 2050. The Strategy includes a wide range of energy policy initiatives that will improve energy security, increase energy efficiency, lower dependence on fossil fuels, increase local production and increase renewable resources. The Strategy predicts that renewable energy resources as a share of total energy consumption will grow to 36.4% in 2030, and to 65.6% in 2050. The government intends to spend about $1.4 billion on grid modernization, with a goal of increasing renewable energy source connections by at least 800 MW by 2026 and 2,500 MW by 2030.
Leading Sub-Sectors
Renewable Energy
There are many ongoing development projects for wind and solar power plants in Croatia. For example, the EU is funding a preparatory study for a 300MW offshore wind farm in the Northern Adriatic Sea, between Italy and Croatia.
Croatia’s Renewable Energy Sources Association announced that Croatia grew its installed solar plant capacity from 224 MW to 305.8 MW in the first six months of 2023 alone. According to U.S. consulting firm BCG, Croatia has significant untapped potential for solar energy usage with one of the highest levels of solar radiation in Europe (3.4-5.2 kWh/m2day), but one of the lowest levels of installed photovoltaic capacity per capita (15.6 Wp).
Croatia also has high potential in geothermal power, with six active exploration projects for electricity and heating plants in central and eastern Croatia. These regions, located in central Europe’s Pannonian basin, have an average geothermal gradient 60% higher than the European average.
Liquified Natural Gas (LNG)
Just two years before the war in Ukraine, Croatia installed an LNG floating terminal on Krk Island, allowing the country to quickly source LNG from the United States and Middle East as an alternative to the Russian gas. Imports through the Krk terminal – largely sourced from U.S. suppliers – have successfully replaced the 60% of Croatia’s gas demand that was previously supplied by Russian’s Gazprom.
The government has started a project to double the capacity of the LNG terminal by the end of 2025 to 6.1 billion cubic meters annually. To support LNG terminal growth and gas diversification in neighboring countries, Croatia plans to build the Ionian Adriatic Pipeline to allow export to Bosnia and Herzegovina, Albania, and Montenegro and to expand its existing pipeline systems to Slovenia and Hungary.
Opportunities
- Battery Storage
- Grid Integration and Grid Enhancing Technologies
- Geothermal Well Drilling Equipment
- Geothermal Power Plant Construction Services and Equipment
- Gas Pipeline Construction Services and Equipment
Resources
- Ministry of Environmental Protection and Energy (Croatia)
- Croatian Electricity Company (HEP)
- Croatian Electric Energy Transmission Operator (HOPS)
- Croatian Energy Regulatory Agency (HERA)
- Croatian Energy Market Operator (HROTE)
- Energy Institute Hrvoje Pozar (EIHP)
- The Environmental Protection and Energy Efficiency Fund (FZOEU)
- Renewable Energy Sources of Croatia (OIE)
U.S. Embassy - U.S. Commercial Service
Damjan Bencic, Supervisory Commercial Specialist
Zagreb, Croatia
Tel: +385 (0)1 661 2186
Email: Damjan.Bencic@trade.gov
Website: https://www.trade.gov/croatia