Croatia

Overall assessment

There is one positive reform in Croatia's REPowerEU chapter, namely "Reform C7.1 R1 - Scaled-up measure: Decarbonisation of the energy sector". This measure "shall establish a new system of self-consumption for energy production facilities in self-supply in order to ensure equal treatment among all customers in terms of access to the distribution network and network fees. The new system shall redesign the way of calculating the remuneration for the self-produced electricity injected into the grid; with charges and fees, including network tariffs, being cost-reflective, proportionate and non-discriminatory.

At the same time, the new system shall create incentives for consumers to become self-consumers, as well as for self-consumption. Charges and fees shall not be imposed on self-produced electricity that remains on the premises of the self-consumer. The new system of self-consumption shall be established by 31 March 2025 at the latest and shall be applicable as of 1 January 2026." This reform will might provide a boost to the operationalisation of the community energy model in the country.

Worryingly, Croatia is part of a very small minority of countries that will use funds from the REPowerEU chapter to support fossil fuels. "Investment C7.1 I3 - Increasing the capacity of the LNG terminal on the island of Krk and strengthening the gas infrastructure". This investment will also expand the capacity of the pipeline Zlobin – Bosiljevo, the pipeline Bosiljevo - Sisak – Kozarac which aims to increase gas transport capacity towards Hungary to 400 000 m3/h, as well as the section Lučko – Zabok of the Croatia – Slovenia interconnector, which aims to increase gas transport capacity towards Slovenia to 170 000 m3/h.

There was little information available on Croatia’s REPowerEU chapter, while it was being drafted, as little (or no) public consultations were held. Therefore, it was impossible to verify or corroborate any proposed reforms and investments contained therein, which reduced accountability and opportunities for public participation. This lack of transparency and inclusiveness remains a pervasive issue which was also mirrored in the drafting of Croatia’s recovery and resilience plan in 2020 and 2021.