April the 22nd, 2023 - Could the Republic of Croatia be powered entirely by renewable resources/energy by the year 2030? Some experts truly believe that this could be the case.

As Darko Bicak/Poslovni Dnevnik writes, by the year 2030, Croatia could get almost all of its energy from renewable sources, according to an analysis presented by the Croatian Renewable Energy Sources Association (OIEH). The investments required to reach these energy goals stand at around one billion euros annually.

Of this huge sum, 500 million euros would be needed for the construction of solar and wind power plants, 300 million for the rehabilitation, modernisation, reconstruction, replacement and digitisation of the country's transmission and distribution network elements, and 200 million for storage technologies.

The above analysis is based on detailed modeling of the evolution of electricity production and consumption and on numerous simulations of the operation of the Croatian power system in different time frames. It also suggests ways to accelerate the transformation of the power system to strengthen resistance to various crises.

According to the OIEH, which is headed by director Maja Pokrovac, based on current consumption and its growth trend, as well as the currently required import of electricity, the analysis shows a possible future energy picture for Croatia in 2030 with 100 percent renewable energy.

"The annual electricity consumption of 21 to 23 TWh per year would be met by the production of electricity mainly from solar and wind power plants in the country. In January 2030, according to this scenario, Croatia would have 2,500 MW of wind farms that produce 6 TWh of electricity per year. It would also have 2,500 MW of solar power plants that produce 3 TWh of electricity annually. We'd also develop 400 MW in the form of other projects of renewable energy sources such as biomass, biogas and geothermal power plants, which would produce 2 TWh of electricity per year," according to the OIEH. They add that in the year 2030, with the average production of hydroelectric power plants of 6344 GWh, other renewable energy sources would produce around 17 TWh, or primary energy of 42 TWh.

This is equal to the production of electricity from 4.2 million tonnes of natural gas or 3.1 million tonnes of liquefied gas, 3.6 million tonnes of oil, or 5.9 million tonnes of hard coal, which represents about 42% of the nation's current primary energy consumption. The completion of the construction of the Senj2/Kosinj hydropower system with a capacity of 412 MW is also expected by 2029, with an increase in the annual production of the Senj hydropower system by about 220 GWh.

By building new wind and solar power plants with variable production, it will be necessary to build new flexibility resources for balancing system services on the production side and consumption side by 2030. These are new reversible hydropower plants with a capacity of +600/-600 MW, annual consumption of around 2.5 TWh and production of non-renewable 1,875 TWh of electricity.

New batteries will also be needed for storage services and balancing system services. The country will also need stable and flexible electrolysers for the production of hydrogen, which would store surpluses in the system during large-scale production of hydroelectric power plants, wind power plants, and solar power plants. Of course, as the association states, an essential condition for this kind of energy picture in the year 2030 is the development of the transmission and distribution network. Special mention should be made of the development of a new double transmission line of 400 kV, transmission capacity of about 2500 MW, between Dalmatia and northwestern Croatia.

With all of the above, it would be the best scenario of the electric power development strategy in the medium term, which is based on 100% RES, and which requires large investments, but gives low operating costs (electricity prices) in terms of operation.

According to this analysis, in 2030, by categories of available energy, renewable energy sources participate with 68.7%, non-renewable with 20.2% and the Krsko nuclear power plant (which has a Croatian share of 50%) with 11%. The exchange balance is zero, that is, the electricity balance would be completely balanced. According to this scenario, Croatia would not need imports at all.

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ZAGREB, 6 May (2022) - Žito Group and E.ON Solar, a company that is part of the E.ON Croatia Group, have signed a contract for the construction of a solar power plant on the premises of the vegetable oil factory in Čepin, which is expected to help save 2.6 gigawatt hours of energy a year and should be put into operation in June.

The new solar power plant will be the eight solar power plant Žito Group operates as part of its energy and environmental strategy.

The seven previously built plants have a total capacity of 2.3 megawatts. The new plant will have a capacity of 2 megawatts and will be the biggest of the eight plants.

Žito Group accounts for 0.3% of the annual electricity consumption in Croatia.

Using organic waste from the group's farms, Žito Group's four biogas units produce 43 gigawatts of electricity a year, which exceeds the group's total consumption. The group expects its energy production to become twice as high as its consumption by the end of 2025, its officials have said, noting that this makes Žito Group one of the most environmentally responsible businesses in Croatia.

Žito Group is a leading agricultural and food group in Slavonia and employs more than 1,350 workers.

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ZAGREB, 21 April 2022 - The head of the REGEA regional energy agency and President Zoran Milanović's adviser on energy and climate, Julije Domac, on Thursday sent an open letter to Minister Tomislav Ćorić with several proposals for mobilising citizens to invest in greater use of renewables.

Domac writes to the Economy and Sustainable Development Minister that in the current circumstances, marred by the energy crisis, energy products' price hikes and efforts to reduce the import of fossil fuels, as well as against a backdrop of climate change to which Croatia is also supposed to respond, the intention of his letter is to point out the need and possibilities of civic energy as an important element of Croatia's overall energy transition.

Therefore he calls for stepping up the development of the market and for opening the door to large-scale participation of citizens in small solar power projects, such as rooftop panel projects.

Domac advocates that investments in individual solar panels up to 50 kilowatts should be exempt from Value Added Tax and for making the procedure simple.

He is also for the introduction of a uniform rate for co-funding solar panel investments up to 25%.

Gradual deregulation of power prices

Domac says that it is necessary to elaborate a system of gradual deregulation of electricity prices for households within three years so as to make electricity prices equal for all categories of consumers.

He holds that the current price tariffs, which make it possible for households to have markedly lower energy prices, undermine cost-efficiency and return on investment in the renewables sector.

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ZAGREB, 12 April 2022 - Olga Pascenco, the European Investment Bank's Global Relationship Manager in Croatia, said on Tuesday that this European Union bank would finance and support projects for the construction of storage facilities for energy generated from the renewables.

Addressing a news conference at which the EIB presented its results in Croatia in 2021, Pascenco said that there was great potential for the construction of renewable energy storage facilities.

The EIB is ready to offer financial, technical and advisory support to the private sector in such projects, she said.

The EIB representative spoke about the importance of developing rail and maritime connectivity and about transport connections between islands and the mainland.

Concerning the rail sector, she pushed for improving train services between Zagreb and Rijeka, having in mind the great potential of the seaport of Rijeka.

The EU's lending arm will place emphasis on direct financing of local communities, that is cities, in a set of essential projects such as affordable housing, improvement of energy efficiency and the post-quake reconstruction, she added.

The bank's assistance to Ukraine

The EIB Board of Directors has recently approved a EUR 668 million loan as immediate financial support for Ukraine.

"This initial support package for the war-torn country benefits from the EU guarantee under the External Lending Mandate and complements other initiatives announced by EU institutions," the EIB says on its website.

In addition, the Board agreed that the EIB should pursue further initiatives under the emergency Solidarity Package for Ukraine, worth four billion euros. It includes help to countries in Ukraine's neighbourhood and within the EU that are welcoming refugees from Ukraine or are affected by the war in other ways.

ZAGREB, 29 March 2022 - INA has begun measuring wind speeds at two offshore gas platforms in the Adriatic Sea in an effort to explore the potential of a possible offshore wind park, the energy company reported on Tuesday.

This is the first offshore project to measure wind speeds in Croatia and gauging will last for at least 12 months.

INA would then be in a position to estimate the full potential of wind and its feasibility taking into consideration industrial standards and then assess whether to invest in this type of renewable source for electricity generation, INA underscored.

The company has already begun construction on solar power plants in Molve and in Sisak which will annually produce 16,000 megawatt-hours (MWh) of electricity. This is sufficient to cater for the average consumption of 4,800 households in Croatia. The first electricity from these power plants should be released into the electricity grid in 2023.

"With this project, INA is taking a step towards new business based on renewable energy sources and mobility as well as other activities in which we see a synergy with our current business activities. We are interested in feasible opportunities that can upgrade our existing value chain and which are at the same time adapted to Croatia's and the European Union's Green Deal," the director of INA's Ventures & Innovations Ante Crljenko said as carried in a press release.

The project has been awarded to the Megajoule Adria company and the company's director Leo Jerkić said that the entire installation will be very demanding as this is the first of its kind in the region.

INA underscored that it is strongly turning towards green technology in line with the company's development guidelines and the MOL Group's "Shape Tomorrow 2030+" strategy.

Hungary's MOL Group, which holds over 49% interest in INA, has said that it will allocate 50% of its total investments in sustainable projects by 2030, INA said in the press release.

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 Senj wind farm, a €200 million investment project by the Chinese company Norinco and the biggest Chinese investment in clean energy in Croatia, was formally opened for a trial run on Tuesday.

The 156 megawatt capacity wind farm stretches over about 60 square kilometres inland from the northern Adriatic town of Senj. It has 39 wind turbines, each with a capacity of 4 MW, and the estimated annual production capacity is 530 million kWh.

The wind farm was built by the Croatian subsidiary of the Chinese state company Norinco International Cooperation, the majority owner of the Senj-based energy company Energija Projekt.

The wind farm was opened remotely by Prime Minister Andrej Plenković, who pressed the button at a ceremony in the Hotel Sheraton in Zagreb, with representatives of the Chinese company attending.

Plenković said that the project would contribute to Croatia's green transition. Being a Chinese investment, he noted that this was a unique project in central and eastern Europe making Norinco one of the largest investors in the green economy in Croatia.

The project will also contribute to the active use of renewable energy sources. The 39 wind turbines and their total annual output of about 0.5 terawatt-hours will make an important contribution to total electricity production in Croatia, the prime minister said.

"One of the main objectives is to increase the production of electricity from renewable sources to 30 per cent already next year, and I think projects like this will help us achieve that objective," Plenković said. "That will help reduce electricity imports and further promote low-carbon development with the ultimate goal of achieving climate neutrality by 2050," the prime minister said, noting that the capacity of the wind farms in Croatia had increased by 65 per cent over the last five years.

Project should be viewed in wider context of Croatia-China relations

The prime minister also said he wanted to put the project in the wider context of the relations between Croatia and China, which which the Croatian government decided to advance relations in recent years.

In doing so, Croatia utilised the China+17 format and hosted in Dubrovnik in spring 2019 a meeting of that initiative, which connects China and countries in central and eastern Europe, Plenković said, recalling that Chinese Prime Minister Li Keqiang attended.

The China+17 format has markedly advanced and intensified China-Croatia relations, with trade amounting to €1.4 billion in 2020 and even more this year.

"That shows that in a time of responsibility for this government, Croatia-China relations have gained quite another dimension," Plenković said, recalling that he officially visited China in autumn 2018, when he talked about this investment with Norinco's executives.

He voiced hope that there will be more Chinese investment in Croatia, and mentioned the construction of Pelješac Bridge, calling it the most visible and significant project by Chinese companies in Croatia.

The prime minister also recalled China's assistance in the procurement of protective gear during the pandemic.

Addresses were also made by representatives of Norinco, a representative of the Chinese Embassy, and by Norinco CEO Jiao Kaihe and Croatian Ambassador Dario Mihelin via video from Beijing. A note of congratulations from the Chinese prime minister was also read out.

The Belt and Road Initiative

The Chinese highlighted their Belt and Road Initiative as part of which they are funding infrastructure building in many countries. For the project in Senj and Brinje they hired more than 40 local subcontractors and suppliers as well as 260 domestic workers.

They also said the project will contribute to green and low-carbon development, the development of the local community, and deeper Croatia-China relations.

They said China will accelerate its green transition as well as actively support and intensify international cooperation in the green economy. Also, they said China's development is not a threat but can benefit the whole world, including Croatia.

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ZAGREB, Sept 11, 2020 - The HEP power company, on the southern island of Vis on Friday, put into operation the largest solar power plant in Croatia, worth HRK 31 million, 3.5 MW in power and expected to produce five million kWh of electricity a year, enough for 1,600 households.

With this first large solar power plant on a Croatian island, Vis has its own source of renewable energy and greater security of electricity supply, notably during summer when consumption is higher, it was said at the inauguration.

SE Vis is the first of seven solar power plants HEP will put into operation this year as part of an HRK 750 million cycle of building such plants from 2019 to 2023.

HEP CEO France Barbaric said the company expected to realize over HRK 4 billion in investment projects this year, a record amount, "notably projects with a large domestic component with which we are strongly contributing to the development and stability of the Croatian economy. Our focus is on projects which will improve the quality of life on the islands."

The inauguration of the largest solar power plant in Croatia is the beginning of what will happen in the next ten years, said Ivo Milatic, state secretary at the Economy Ministry.

He recalled that in 2017 the government had embarked on a new energy policy focusing on investment in green energy. "This power plant is the best example of such investment and, on behalf of the government, I congratulate HEP and Koncar on the realization of this valuable investment for Croatia's energy and economy."

Koncar is the company that built SE Vis.

HEP said a 1 MW, 1.44 MWh battery would be installed by SE Vis, the first of this size in Croatia, to balance the power supply system and keep the grid on Vis island stable.

HEP is investing about HRK 1 million in the improvement of the island's power infrastructure and next year it will invest almost HRK 30 million in numerous projects.

"SE Vis, together with the other solar power plant projects under construction, such as SE Vrlika, and those under development, such as the Bogomolje plant on Hvar island and others, will keep Split-Dalmatia County the leader in renewables in Croatia," said county head Blazenko Boban.

HEP announced that it would build additional 1,500 MW production capacities by 2030, nearly half of which would be wind parks and solar power plants, which matches the power of the Krsko Nuclear Plant.

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ZAGREB, November 4, 2019 The association called "The Renewable Energy Sources of Croatia", whose acronym in Croatian is OIEH, said on Monday, on the occasion of the 3rd anniversary of the Paris climate change agreement, that the application of renewables in Croatia could also provide opportunities for economic growth and not only challenges.

The Paris treaty, which was seen as a watershed in the struggle against climate change, was signed in 2016 as an agreement within the United Nations Framework Convention on Climate Change (UNFCCC), dealing with greenhouse-gas-emissions mitigation, adaptation, and finance.

The agreement stated that it would enter into force only if 55 countries that produce at least 55% of the world's greenhouse gas emissions ratify, accept, approve or accede to the agreement.

Croatia has undertaken to reduce greenhouse gas emissions and therefore it is necessary to carry out the transition to low-carbon production and renewables.

Croatia is expected to adopt two documents by the end of this year: a strategy for energy development in the period until 2030 with an outlook for the period until 2050, which envisages a much higher share of energy from renewable sources, greater energy efficiency and a reduction of greenhouse gas emissions; and a national 2012-2030 national energy and climate plan.

Last Thursday, the government forwarded the draft strategy to the parliament.

The funds required to implement the strategy range between 378 and 461 billion kuna or between 12.5 and 15 billion kuna annually. Investments will be more intensive in the period until 2030 (14-17 billion kuna), and in the period from 2031 to 2050 they will amount to between 12 and 15 billion kuna, the government said.

At the end of 2018, the share of renewables in total energy consumption in Croatia was 28%, which is more than regulated by the EU.

In 2017, the share of renewables in total domestic energy consumption was 27.3%.

According to the findings of a survey conducted by Eurobarometer, 41% of Croatians believe that it is necessary to increase financial support for efforts aimed at transitioning to clean energy, and every second Croat wants their country to reach carbon neutrality by 2050.

More energy news can be found in the Business section.

ZAGREB, April 8, 2019 - Croatia's HEP national electricity provider on Monday presented a new investment cycle in solar power plants valued at 750 million kuna with the first investments to be made in the Kaštelir, Cres, Vis and Vrlika Jug plants with a total power of 11.6 megawatts (MW) and a value of 80 million kuna.

HEP management board chair Frane Barbarić said that under the big investment scheme the company would invest 750 million kuna by 2023 or 150 million kuna a year for that purpose.

Of the four above-mentioned facilities, the Sabadin plant, which will now be renamed to Kaštelir has been already purchased from the former owner.

Barbaić said that it is expected that by 2030 the power plants will produce 350 MW, which is seven times more than the power currently produced by all the solar power plants in Croatia.

He added that HEP has launched a strong investment cycle in renewable energy sources and that in addition to solar plants, investments will be made in hydro-electricity power plants, wind farms and other renewables. Thus, HEP plans to start building its first wind farm this year.

Barbarić mentioned that HEP's plan to construct solar power plants on the tops of its buildings with a power of 2.1 MW, a project estimated to cost 13 million kuna.

Environment and Energy Minister Tomislav Ćorić said that the main focus of Croatia's Energy Strategy by 2030 is renewable energy sources.

We have huge energy potential from the sun and wind, Ćorić said and added that this year the ministry will subsidise "solar plants" on household roofs. This is a good investment and proof that Croatia is concerned with environment protection, he added.

More energy news can be found in the Business section.