The energy sector in Croatia

Croatia has around 4.4 million inhabitants and a rich potential for renewable energy and energy efficiency. The country produces 48.4 percent of its total primary energy supply, including around 20 percent of the oil it consumes, and around two thirds of natural gas. Unlike most of its Western Balkan neighbours it no longer has its own coal or lignite reserves.

Generation capacities and HEP

Croatia produces only about 58 percent of its own electricity, and 95 percent of its electricity generation capacity is owned by Hrvatska Elektroprivreda, the state-owned electricity group.

Around half of Croatia's electricity generation comes from hydropower, with most of the rest coming from thermal power plants run on fuel oil/natural gas and coal. Krsko nuclear power plant in Slovenia, of which HEP owns 50 percent, also accounts for 8.4 percent of HEP's available capacity.

Renewables

Only 4.9 percent of electricity generated in Croatia came from new renewables in 2012. Croatia's renewables capacity, other than large hydro, consists of plants owned by private operators. By the end of 2013, 300 MW of wind turbines had been installed. In 2012, the share of renewables in the total primary energy supply amounted to 12.5 percent – still far from Croatia's target of 20 percent by 2020.

Croatia is progressing wind power projects, but with sufficient political will could do much better. The country still has significant potential for wind, solar thermal and electricity, biomass and biogas, and geothermal for heating, but their development has been hindered by complicated permitting and grid connection procedures.

Renewables and energy efficiency development has been held back by successive governments pushing large, environmentally harmful projects, such as a new 500 MW coal power plant, to be run on imported coal, at Plomin in the county of Istria, and large-scale hydropower projects in sensitive locations such as Ombla and Kosinj.

Energy efficiency

Croatia still has plenty of potential for energy efficiency improvements. Its energy intensity of total primary energy supply was 6.9 percent above the EU-27 average in 2012 and its gross electricity consumption its energy intensity was 15.3 percent above the EU-27 average.

In the period from 1995 till 2012, there was a positive trend of increased energy efficiency by 16.6 percent for all final energy consumers combined. This was mainly the result of progress in industry and transport, whereas there is still plenty of work to be done to improve efficiency in the residential sector.