Brussels to Croatia: Boost renewables, flexibility for cheaper industrial electricity
The European Commission advised Croatia to speed up the installation of renewable energy capacities and add non-fossil flexibility solutions, to reduce electricity prices for businesses.
Electricity prices for the corporate sector in Croatia in the first half of 2024 were the third-highest in the European Union, according to the European Commission.
At about EUR 0.244 per kWh, only Cyprus and Ireland had higher prices – EUR 0.2578 per kWh and EUR 0.256 per kWh, respectively.
“In the first half of 2024, Croatia had the third-highest electricity price in the EU for business/industrial consumers. This continues to hold back the cost competitiveness of Croatian companies,” the commission said in its Country Specific Recommendations under the 2025 European Semester: Spring Package.
Despite a record increase in solar capacity in 2024, by 397 MW, its share in electricity generation remains low, at less than 6%.
An increase in the uptake of large-scale renewables, including solar, is hampered by an uncertain regulatory framework
Against this background, faster roll-out of new renewable energy capacity, especially solar, and non-fossil flexibility solutions could help reduce price levels, the update reads.
The commission said an increase in the uptake of large-scale renewables, including solar, is hampered by an uncertain regulatory framework as the national energy regulator HERA is yet to adopt updated grid connection fees. The situation creates uncertainty for potential investors and has effectively prevented projects from securing financing, the European Union’s executive arm stressed.
Increased investment in the electricity grid, beyond what’s in Croatia’s National Recovery and Resilience Plan (NRRP), would be crucial for an uptake of renewable energy, according to the commission. In the short term, it would imply incentives for hybrid storage and renewable energy projects, the document reads.
Speed up rollout of smart meters
In 2023, only 24% of household consumers had smart meters installed, which is significantly less than the EU target of 80%.
To be able to fully capitalize on an increased uptake of renewable energy, significant funding for the rollout of smart meters – beyond the measures in the NRRP – and dynamic contracts will be needed to empower consumers and foster demand response, the commission noted.
It advised Croatia to review and simplify administrative procedures for installing renewable energy facilities, including in multi-apartment buildings, and for setting up energy communities.
The measures would help reduce the reliance on fossil fuels and increase the low number of registered energy communities, according to the commission.
