Croatia, a country with tremendous natural potential, offers particularly attractive opportunities for foreign investors. Renewable energy production in Croatia is developing dynamically, supported by significant EU funding and national strategies. The Croatian government has ambitious plans to increase the share of renewable energy to 36.4% of total energy consumption by 2030.
At present, the majority of electricity generation capacity in Croatia is owned by Hrvatska Elektroprivreda, the state energy group, though a growing number of renewable power plants — primarily wind farms — are in private hands. The development of renewable energy sources was slowed for years by low guaranteed feed-in tariffs for solar energy. In line with EU state aid rules, Croatia has now transitioned to an auction and energy premium system in place of guaranteed tariffs. However, delays in adopting implementing legislation and developing new energy and climate strategies created uncertainty for several years and slowed the development of both wind and solar energy — meaning the market is not yet saturated and continues to offer strong investment incentives.
EU-Funded Support: Renewable Electricity Production in Manufacturing and Heating
Objective: Supporting Croatia’s national climate and energy targets as defined in the Integrated National Energy and Climate Plan 2021–2030; increasing the share of renewables in gross final energy consumption by 2030; reducing greenhouse gas emissions; and promoting self-consumption of electricity from renewable sources in manufacturing facilities and associated premises.
Eligible applicants: Micro, small, medium, and large enterprises classified under NKD sector C (Manufacturing) and sector D (Steam supply and air conditioning, section 35.30).
Available funding per applicant: Minimum: €100,000 | Maximum: €5,000,000
Support intensity:
- A. Renewable energy production investments (including high-efficiency cogeneration from renewables): Micro/small enterprise: 65% of eligible costs | Medium enterprise: 55% | Large enterprise: 45%
- B. Energy storage investments (in conjunction with A above): Micro/small: 50% | Medium: 40% | Large: 30%
Eligible activities: Construction of on-grid photovoltaic power plants (minimum module efficiency 20%); biomass power plants; biogas power plants; installation of on-site battery storage systems; project and construction supervision.
EU-Funded Support: Energy Efficiency and High-Efficiency Cogeneration in Manufacturing
Total grant funding: €80,000,000 from the Modernisation Fund
Available per applicant: Minimum: €100,000 | Maximum: €5,000,000 | Maximum intensity: 50%
Eligible applicants: Commercial companies (micro, small, medium, and large enterprises) classified under NKD sector C (Manufacturing).
Eligible activities: Energy efficiency improvements (expansion, modernisation or replacement of existing installations; heat recovery; use of industrial waste gases; energy management and monitoring systems); production of energy from high-efficiency cogeneration, trigeneration, or quatrogeneration using renewable sources for self-consumption; project and construction supervision.
Selected Reference Projects
- ISKRA ZELINA – Chemical Industry: Construction of a photovoltaic power plant | Project value: €158,223.11
- PEMPERS D.O.O.: Construction of a production and business facility with state-of-the-art wood processing and drying machinery | Project value: €1,584,000.00
- MEZNAR CONSTRUCTION SERVICES: Purchase of production and technological equipment for the digital and green transformation of asphalt and concrete mix production | Project value: €2,164,567.99
How We Can Help
We offer: technical assistance with project documentation preparation; development of application documentation; guidance throughout the grant application process; procurement documentation preparation; and project management. We have been working on EU-funded projects for many years — we know what you need, and we have the experience, expertise, and a strong track record of successfully completed projects.
Investing in renewable energy in Croatia represents an opportunity for strong financial returns. Current statistics and the dynamic growth of the renewables sector show that Croatia is an attractive destination for investors. Favourable natural conditions, government and EU support, and a stable legal and regulatory environment give investments here significant potential. Get in touch to discuss your next investment in Croatia.