ZAGREB, 24 March - Members of the Croatian Parliament on Thursday welcomed the proposal for a national hydrogen strategy until 2050, stressing the importance of economic development based on hydrogen, own energy production and increased electricity production from renewable sources.

Some opposition lawmakers warned of the commercial unprofitability of green hydrogen.

In recent years, Croatia has been making a great effort in decarbonising its energy sector and economy, its goal being to ensure that by 2030 at least 36.6 per cent of electricity consumption comes from renewable sources, said Ivo Milatić, state secretary at the Ministry of Economy.

A hydrogen-based economy is an important part of plans by EU member states towards a green energy transition, and the proposed strategy follows up on the EU hydrogen initiative, which Croatia signed in 2018, he said.

The proposal puts emphasis on renewable hydrogen, obtained by low-carbon emitting technologies. Some sectors of the Croatian economy have already expressed an interest in developing hydrogen technologies, which is why a government strategic document is needed to give direction to the development of hydrogen technologies, Milatić said.

Ljubica Maksimčuk of the ruling Croatian Democratic Union (HDZ) was interested in whether Croatia was ready for the first phase of the strategy, from 2020 to 2024, which aims to ensure the production of one million tonnes of renewable hydrogen.

"Croatia is ready for this. Under the National Recovery Plan, we have undertaken to install 10 refuelling stations over the next three years and finance a certain number of electrolysers," Milatić said, adding that there was interest from hydrogen associations and private and public companies.

In response to a question put by Andreja Marić of the Social Democratic Party (SDP), Milatić said that 60 public transport buses in Zagreb would switch to hydrogen use and that a hydrogen refuelling station would be installed for that purpose.

Vesna Vučemilović (Sovereignists) wanted to know why the proposed strategy gave priority to transport over industry and to green hydrogen, which she said would have to be subsidised because it was commercially unprofitable.

Milatić said that Croatia was rich in renewable energy sources and that it would not be wise to go any other way than green hydrogen. He, however, noted that they were aware that ample government subsidies would be necessary as long as this technology did not become cheaper.

Responding to a question from independent MP Hrvoje Zekanović about the price of a kilogram of hydrogen, Milatić said that its price currently ranged between 12 and 15 euro and that a car with six kilos of hydrogen in the tank can drive between 500 and 600 kilometres.

Marin Miletić (Bridge) said that the EU planned to invest about €500 billion in renewable energy sources by 2050 and Croatia more than HRK 70 billion (€9.3bn), which is equivalent to the cost of 17 Pelješac bridges. He asked Milatić where Croatia would get that money from.

Milatić said that conventional renewable energy sources, such as wind and sun, would require minimum or no state subsidies in the near future. "Our focus will be on small solar cells on houses and on new technologies, and among new technologies, hydrogen will dominate financially and in any other respect."

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ZAGREB, 7 Dec, 2021 - The state secretary at the Ministry of Economy and Sustainable Development, Ivo Milatić, said on Tuesday that in addition to HRK 390 million set aside for the energy renovation of family housing, as much money would also be allocated to companies for the same purpose.

HRK 400 million will be allocated from the national recovery and resilience plan to companies which failed to get funding in the tender process because there wasn't enough money, Milatić said in response to the question from MP Tomislav Okroša of the ruling Croatian Democratic Union (HDZ) during debate on the final text of the renewable energy bill.

Okroša said that 8,850 applications had been received as part of the call for the energy renovation of housing and the construction of systems for the use of renewable energy sources, while only HRK 390 million was available. He wondered if this call would be issued again and whether this amount would suffice.

Milatić expressed hope that the amount would suffice, "and if not, calls will continue from the new financial perspective and the Environmental Protection Fund," and that all this investment would result in the installation of "a serious amount of solar panels" by the end of 2022.

He dismissed the claim by Zvane Brumnić (Social Democrats group) that the bill had been changed between the two readings indicating that investors would turn an enormous profit at the expense of citizens.

"I don't know where you found this. I categorically deny that private companies will make an enormous profit, that's out of the question," Milatić said.

He said that the bill promoted the use of renewable energy sources and aimed to increase the share of renewable energy in the heating and cooling sector by 1.1 percentage points as the annual average calculated for the period until 2025.

This bill seeks to ensure that there is at least 36.6 per cent of renewable energy in final energy consumption by 2030, the state secretary said.

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ZAGREB, 22 Sept, 2021 - Economy Ministry state secretary Ivo Milatić said on Wednesday that electricity prices for households would not increase this year.

"You heard (power provider) HEP's clear statement that this is not being considered by the end of the year," he told Davor Dretar of the opposition Homeland Movement, who asked if electricity prices for households would go up this autumn.

Dario Zurovec of the opposition Fokus asked if arise was expected in a year's time given the turbulence on the world market.

Milatić said that if prices were corrected next year, the corrections "will not be as in neighbouring markets."

He said that if electricity prices continued to increase, some corrections would be inevitable, but added that Croatia was in a different position as 60% of the total energy production was renewable, with half of that from the hydro potential.

Household electricity prices won't be raised for political reasons

Mirela Ahmetović of the opposition SDP said household electricity prices would not be raised for political reasons but that they would be for businesses and that this would affect households through more expensive goods.

She said Croatia imported almost 35% of electricity and that this made it dependent on galloping prices.

Milatić said Croatia was in a "good position" with regard to the price of electricity and would stay there.

Croatia ranks 26th among 33 European countries when it comes to household and 21st when it comes to corporate electricity prices, he said, adding that refunds for energy poor citizens would increase if the price of energy they could not pay went up.

He also said that significant funds were envisaged to co-finance the construction of charging stations for electric cars.

Milatić said Croatia had a number of power providers, with HEP's companies holding 80% of the market. This is good, he said, as Croatia is not as affected by prices as some other countries.

MPs were debating an electricity market bill which envisages transition to clean energy and transposes an EU directive on common rules for the electricity market. One of its main novelties is that Croatian households will be able to buy electricity from a provider in any other EU member state and their citizens will be able to buy it from HEP.

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ZAGREB, 29 June, 2021 - Croatia can be a green energy transition leader, Economy and Sustainable Development Ministry state secretary Ivo Milatić said on Tuesday at a conference on  Croatia's energy future organised by Lider weekly.

He said Croatia was preparing legislation and all the prerequisites for "as good and successful an energy transition as possible."

Milatić said Croatia had a 2030 energy strategy with an outlook on 2050, a national climate energy plan and amended laws on energy efficiency and biofuels, and that it was in the process of amending laws on renewables and the electricity market.

The latter amendments, he said, will significantly help with green transition as it will allow market development. "There will be no more random development projects without any physical plans."

Milatić said the National Recovery and Resilience Plan envisages HRK 5 billion for energy, of which three billion to digitalise and enhance the electricity network.

"That will help to achieve the main goals, as we committed to installing in Croatia 1,500 new megawatts by the end of 2024. Croatia's plan is to install 2,500 megawatts by 2030."

Milatić said the National Recovery and Resilience Plan also envisaged large sums for heating and energy efficiency in industry.

He said HRK 1 billion was envisaged for a Sisak biorefinery project, a facility that would produce major quantities of fuel, which could make Croatia influential in this part of Europe as well as develop agriculture.

"Our goal is for Croatia not to import 40% of energy and in order to achieve that, we must have many renewable energy source capacities. Croatia can be a green energy transition leader, but it's up to us."

Neven Duić of the Zagreb Faculty of Mechanical Engineering and Naval Architecture said Croatia's energy transition policy had changed for the better.

"The European transition hurricane that started brings big changes: 55% less greenhouse gasses by 2030, climate neutrality by 2050, we are heading towards 38 to 40% renewable energy sources by 2030, and the EU's green recovery plan brings money which can be used to push new technologies," he said.

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