Transition at a Crossroads – Discussions, Solutions, and Visions from Day Two of the RES Days 2025 Conference

The second day of the RES Days 2025 conference in Split brought a series of strategic discussions about the future of Croatia’s energy transition.

The focus was on the alignment of current policies with climate goals, obstacles still slowing down broader integration of renewable sources into the power grid, and financial and operational challenges faced by development projects. Special attention was given to next-generation technological solutions – from battery systems to digital tools – that can bring greater flexibility and resilience to the energy system.

The introductory session was delivered by Dražen Jakšić, Director of the Energy Institute Hrvoje Požar. In his presentation “The Role of RES in the Further Energy Development in the Republic of Croatia”, he gave an overview of the current state and challenges in the development of renewable energy sources in Croatia, as well as their key role in the transition to climate neutrality by 2050. Jakšić outlined the broader context for Croatia, emphasizing climate obligations toward the European Union and the need to reduce greenhouse gas emissions.

– Since 1990, Croatia has reduced CO₂ emissions by about 20 percent, but it is concerning that in the past few years emissions have started to rise again, primarily due to increases in the transport sector, where RES are barely used – Jakišić warned. He pointed out that Croatia has made a strong step forward in wind farm development over the last ten years, and recently there has also been a noticeable increase in solar energy. Despite the progress, he emphasized that Croatia still lags behind the EU average. In 2023, the share of RES in gross final electricity consumption in the EU was 42.5%, while Croatia was at just over 28%. Particularly alarming is the transport sector. According to 2023 data, the share of RES in energy consumption in Croatian transport was only 0.9%, while the European average was 10.8%.

– The target of 24.6% in that segment seems extremely difficult to achieve – said Jakšić. Regarding energy self-sufficiency, the Director of the Energy Institute Hrvoje Požar emphasized that Croatia currently produces around 44% of its own energy needs and imports the rest. Even projections for 2050 do not show that we will be fully energy independent.

– If we want to achieve the set goals, it is necessary to simplify the procedures, create a stable legal framework, and provide investors with greater security and predictability – Jakšić said.

PANEL Energy Independence of Croatia – Between Regulation and Practice

The second panel of the RES Days 2025 conference, moderated by Al Jazeera journalist Saša Ćeramilac, opened the discussion on Croatia’s energy independence through the lens of legislative frameworks, investment security, and real obstacles encountered in practice.
Panelists, experienced representatives of the energy and investment sectors, unanimously pointed to slow and unpredictable administration as the biggest “headache” for investments in the RES sector.

Ivan Liakh, DRI Country Director for Croatia, noted that his company simultaneously launched projects in Croatia and Romania. While the 126 MW Romanian project will be connected to the grid by this November, the Croatian one is still on hold.

– We talked about this issue last year at the RES Days in Pula, and nothing has happened since – said Liakh. The main issue is not only the duration of the process, but also its unpredictability. – In five years, the legal framework can change multiple times. We have to be patient, but many projects stall because of this – he noted.

Andreas Rörig, CEO of E.ON Croatia, agreed that the (un)predictability of implementing RES projects is one of the major challenges in Croatia. He emphasized that Croatia has the knowledge, experience, and capital, but due to an unclear regulatory framework, investments remain uncertain. He compared Croatia to other countries, where funding for household solar plants is consistently available and does not depend on occasional calls for tenders. He also addressed the state of the power grid, noting that there is no control over the system without investments.

– Croatia and Malta are the only European countries with a single grid operator. Elsewhere, it is precisely the competition that brings about the efficiency – Rörig noted.

Ante Mandić, CEO of Petrol Croatia, reminded that this company has eight decades of experience in the oil sector, and noted that in recent years it has been investing heavily in RES.

– We face serious challenges in implementing RES projects. The dynamics and predictability of investments have already been recognized as key problems – Mandić said. He expressed hope that ongoing legal reforms will lead to solutions and emphasized the importance of rapid decision-making and process implementation. He highlighted electromobility and building a network of electric charging stations as areas where Croatia can progress.

Zvonimir Novak, Director of Business Development of ENNA Group, shared experiences of investments in Romania, where they recently launched a solar power project and plan to install a battery storage system.

– We asked for a meeting, 19 people showed up, no one spoke English, but everything was agreed on – he humorously recounted the course of conversations in Romania, pointing out the surprising efficiency of its administration. In Croatia, ENNA is developing two geothermal projects, in Slatina and Babina Greda. The first is in an advanced phase, but the expected tender was never published.
He emphasized that geothermal energy is ecologically the cleanest and it could be key to system balancing, but it is eight times more expensive than solar energy.

Maja Turković, Executive Vice President of CWP Europe, also commented on the Romanian market, noting that while it may seem attractive, it is not a realistic model, since “entry” is almost exclusively done through acquisitions. She sees Croatia as a market with a sound legislative logic, particularly with respect to the energy permit institute, which helps distinguish serious from less serious projects.

– Money is not the issue. The problem is finding a project that can pass the bank review. And then there is the issue of permits – Turković said, warning about the inertia of the process; Croatia ranks among the slowest in Europe when it comes to RES project development. Regarding the grid, she added that all countries in the region share the same misfortune – outdated transmission systems and absence of connection fees.

The introductory presentation of the next panel was delivered by Krešimir Šimleša, Head of Grid Connection Department at the Croatian Transmission System Operator (HOPS). He presented the current status of connecting renewable energy sources to the transmission network, as well as projections for the future in line with the National Energy and Climate Plan (NECP). As of 1 May 2025, a total of 4725 MW from RES has been connected to the HOPS network – highlighted Šimleša.

– Of that total, hydropower plants account for 2200 MW, wind farms for 1141 MW, and solar power plants for 102 MW.

For the period 2025–2030, connection agreements have been signed for an additional 1167 MW, while in 2024, elaborates on the optimal technical solution for grid connection (EOTRP) were conducted for another 2628 MW. Additionally, applications are being submitted for the preparation of EOTRPs for a further 940 MW, scheduled for implementation in 2025 – Šimleša said. He clarified that this brings the total capacity at various stages of connection to 8574 MW, meaning that, with ongoing development projects, Croatia has already exceeded the NECP target for 2030, which stands at 7543 MW of RES. The target for 2040 rises to 11,915 MW, implying that an additional 3341 MW is still needed to meet that goal. Šimleša noted the following current trends in the connection process: a growing number of data center connection requests, an increase in combined plants (e.g. wind + solar + battery storage), replacement of existing plants without increasing connection capacity, and the installation of production facilities to cover self-consumption.

PANEL Connecting RES to the Grid – Challenges and Solutions for a Faster Integration

The third panel of the RES Days 2025, titled “Connecting RES to the Grid – Challenges and Solutions for a Faster Integration”, was moderated by Ivo Dubravčić, Country Director for Croatia at Hive Energy.

Experts discussed grid connection costs, virtual power plants, and ways to connect projects to already burdened networks. Dejana Popović Milovanović, Project Manager for Grid Connection at Elektromreža Srbije (EMS), presented the steps EMS has taken to ease and accelerate the integration of renewables into Serbia’s power system. She emphasized the formation of a working group that led to comprehensive changes in the regulatory framework – from energy law to grid connection rules. The cost of conducting connection studies is now proportional, and more realistic unit requirements have been introduced, although some projects reach up to 600 MW.

– EMS introduced bank guarantees and revised the network capacity calculation mechanism, which is now performed by the operator through EOTRP, with hourly-level analysis. This provides investors with a clearer vision of connection feasibility. Strict deadlines have been set for every stage of the connection process – Popović Milovanović explained.

Mladen Šicel, Head of Contracting Department at KOER, spoke about the concept of virtual power plants, which integrate electricity producers and consumers, enabling cheaper energy purchase and price optimization. He stressed that such system also helps maintain grid and frequency stability, but emphasized that virtual power plants must be complemented by battery storage systems, which are the key solution for managing RES energy surplus.

– Currently, nine companies in Croatia have licenses for virtual power plants, of which three are operational – Šicel said.

Krešimir Šimleša, Head of Grid Connection Department at HOPS, spoke about the instruction issued this month by the Croatian Energy Regulatory Agency (HERA) to HOPS, by which it requested from HOPS to process all connection requests from 2024 within 90 days. This includes the preparation of a joint analysis of all projects and final decisions on the acceptability of each individual grid connection elaborate (EOTRP), along with a detailed analysis of expected production limitations for each power plant. However, the Rules on the connection to the transmission network stipulate that each connection decision shall also include an appropriate unit connection fee. Šimleša stated that HOPS can comply with HERA’s instruction, and that it also expects that the grid connection fees will finally be determined within the specified 90-day period. He also discussed “grid reinforcements”, noting that 30 such interventions are currently planned, and the most significant one among them is the Konjsko–Melina project. However, the realistic implementation of these reinforcements is expected only around 2035.

Josip Tošić, Ph.D., Director of TOSKA, commented on discussions regarding system security, particularly in the context of the blackout in Spain, which is often attributed to RES. He emphasized that such events are usually the result of a series of unfortunate and rare circumstances, rather than the exclusive fault of renewables. He highlighted the stability of Croatia’s electricity system, recalling the incident in Dalmatia last year, which was also a matter of pure coincidence, namely, a fire in Montenegro and a fault on another transmission line. Tošić stressed that the development of high-quality RES projects is absolutely feasible, but many are currently blocked due to delays in determining connection fees, even though the entire process began back in 2019 with the first EOTRP lists.

Krešimir Ugarković, Director of Asset Management Sector at HEP-ODS, explained that flexible agreements allow the connection of projects that would otherwise be excluded from the network. Ugarković also expressed hope that the new Electricity Act will further formalize such models. He emphasized that HERA’s instruction to HEP-ODS for issuing EOTRPs is binding and that they have taken it seriously. The procedure, he added, is being completed within the prescribed 90-day period. Ugarković concluded that the current grid connection rules contain enough flexibility to support development needs, without additional amendments required.

Florentien Benedict from the Technical Regulation of Stedin (the Dutch DSO) explained the situation in the Netherlands. Stedin is an entity similar to HEP-ODS but in the Netherlands, where a large number of grid connection requests and almost complete network congestion have become daily challenges.

– We introduced a law that obligates the operator to connect all projects, regardless of available capacity, even if it means that some producers must be disconnected during peak periods. Investors agree in advance who will be removed from the network at what point. Compensation is provided for the lost energy – Benedict said, adding that Stedin plans to invest €80 billion in the grid over the next 10 years. Investors do not bear the cost of grid expansion, they only pay the connection fee, which is calculated proportionally to the size of the project.

PANEL Building RES Projects – Financial Sustainability and Operational Challenges

The panel on financial sustainability and operational challenges in the implementation of renewable energy projects, the fourth discussion on the second day of RES Days 2025, was moderated by Lejla Barić, a journalist at Financije.hr portal, who emphasized the importance of synergy between financial institutions, investors, and contractors for a successful energy transition.

Francesco Corbo, Regional Head Energy for Western Balkans and Croatia at the European Bank for Reconstruction and Development (EBRD), highlighted that Croatia is a “good student” in the field of renewables. He particularly emphasized that small investors must have equal access to support as large ones. Corbo also stressed that the private sector can only grow with public sector support, as well as that EBRD is ready to finance projects based on long-term power purchase agreements (PPAs). As an additional development tool, he mentioned InvestEU, an initiative they developed in cooperation with the European Union that enables the inclusion of private investors.

Ante Krečak, Head of Project Financing at Erste Bank, presented the banking sector’s view on RES projects assessment. He explained that in every analysis, the primary focus is placed on the investor, that is, on the project developer and their knowledge of the specific context of the energy investment development. In the energy purchase model, he noted, it is crucial who the buyer (offtaker) is and how strong the PPA is, as this determines the necessary amount of the investor’s own capital. Among the main challenges in the development of RES projects, he mentioned the long duration of the process, noting that it often takes several years from the finalization of the financial structure to the start of construction.

– Total annual energy consumption in the region is 1500 TWh, of which only 10% is currently covered by PPAs. In Croatia, the corporate sector consumed 12 GWh last year, but less than 1% of that energy was contracted through corporate PPAs. Erste has already held training sessions for clients to help them understand PPA contracting mechanisms and take advantage of the market’s strong potential – Krečak explained.

Experience of the national energy company in developing RES projects was presented by Dražen Lovrić, Director of Strategy and Development Department at HEP. He emphasized that, as an investor, they are proud to currently have 150 MW of solar power under construction in various stages. He said that success lies in expertise and highlighted that both large and small projects are equally important.

– For us, 1.5 MW on Unije and 99 MW at Korlat are the same. Regardless of size, all projects face similar challenges on the ground, especially with equipment delivery and unforeseen circumstances – said Lovrić. He added that project preparation is a key phase, in which it is already possible to clearly distinguish serious developers from those who develop projects with the aim of quick resale.

Iva Naletilić, Project Manager at INERO, provided insights from the perspective of a local contractor mainly active in the Split-Dalmatia County. She emphasized coordinating equipment delivery with other construction phases as one of the main challenges. Although the problems are not as big as with transformers, which can take several years to arrive, any delay in equipment triggers a domino effect and leads to a delay in the execution of the entire project.

– A particular challenge is posed by non-integrated solar plants in Dalmatia, often located at higher altitudes and exposed to adverse wind effects. These conditions affect foundation work, panel installation, and structural reinforcement – said Naletilić. She reminded that INERO has been active for over 30 years, and they strive to apply all past experience in the implementation of RES projects.

Denis Čamber, Director of Sales and Business Development at Končar, also spoke about logistics challenges, particularly in relation to projects on islands, such as the one on Vis and a new one on Cres.

– When we are the contractor and the investor is, for example, HEP or INA, public procurement is mandatory, and payment dynamic is an additional challenge. Most often, the delivery of the equipment is invoiced in stages. This means that until the panels physically arrive at the construction site, which can take time, the contractor is the one financing them – Čamber explained.

Simone Dell’Atti, Lead Advisor for Equity Growth and Project Finance Structuring at the European Investment Bank (EIB), spoke about whether there is room for small investors or if only those with state guarantees, such as HEP, are eligible for EIB financing.

– Although some of the funds may be directed exclusively toward state-sponsored projects, for example to improve the condition of the network, EIB still considers all aspects – Dell’Atti said.
He concluded by announcing new financing options for battery storage systems, stressing that these will be crucial for the future stability of energy systems.

Before the panel itself, the construction of the Poštak Wind Farm in the municipality of Gračac was presented.

Ahead of the final panel on day two of the conference, Christophe Lits, Senior Market Analyst at SolarPower Europe, presented the European Market Outlook for Battery Storage report, which included the latest data and forecasts on the development of battery energy storage systems across Europe.

According to the data he shared, last year marked a record for battery installations, with 21.9 GWh of battery capacity installed across Europe, which accounts for approximately a third of the total installed capacity to date. This brought the total European battery fleet to over 60 GWh, or more precisely, 61.1 GWh in 2024. Lits emphasized the significant role of home batteries, which account for a full 60% of the European battery fleet. At the individual market level, Germany remains the dominant market for energy storage in Europe, followed by Italy and the United Kingdom. These three countries together accounted for around 70% of all new installations in the previous year.

– European energy policies have largely focused on renewable energy targets, but targets for energy storage are still lacking. That is why the adoption of a European Action Plan for Energy Storage is essential, as it would provide a strategic framework for developing this vital segment of the green transition – said Lits.

Benjamin Schaible, Head of International Sales at Krannich Solar, outlined the product portfolio and strategic direction of Krannich Solar, a renowned German distributor of photovoltaic equipment. Schaible highlighted the company’s key business segments that include solar modules, inverters, energy storage systems, e-mobility solutions, commercial storage systems, and DC charging stations.

– Over the past 30 years, Krannich Solar has grown into one of the world’s leading distributors of photovoltaic equipment. The company now operates in more than 30 countries, has over 1,000 employees, and serves customers in over 100 countries worldwide – Schaible stated.

 

PANEL Innovations for the Next Generation of Power Plants and Battery Systems

The fifth panel on the second day of the RES Days 2025 conference, moderated by Miloš Kostić, Director of MT-KOMEX, focused on innovations shaping the future of power plants and battery systems, ranging from hardware solutions and software tools to strategic planning and investment approaches.

Helena Skrbič Sambolec, PRANGL Procurator for Adria region, explained how her company, specialized in logistics and engineering solutions in the sector of heavy cargo, contributes to more sustainable construction of energy facilities through its innovative approach. She emphasized the importance of involving logistics and technical partners in the early project planning phase, especially for turbine replacements or solar power plant construction.

– If equipment is selected early and wisely, there is no need to clear forests or widen roads, which is a huge contribution to sustainability – said Skrbič Sambolec. She added that while PRANGL’s specialized equipment may initially seem more expensive, it reduces the need for additional infrastructure, ultimately lowering overall costs.

Milan Šteković Šutić, Sales Manager at JA SOLAR, one of the world’s leading solar panel manufacturers, spoke about the innovation potential of the company, which recently marked the 20th anniversary of its foundation. He noted that JA SOLAR is known for developing new technologies, including TOPCon cells.

– Technology is not just a tool for increasing efficiency, it is a driver of development – he said. Šteković Šutić explained that the company is also developing battery systems that were recently introduced at the Intersolar fair. Although they already have them in their portfolio, they are now bringing them to the “technically demanding” European market. He also spoke about the concept of “repowering” solar systems, including the repurchase and recycling of old panels, which would extend their life cycle.

John Šuša, CSO at WHES, shared insights from the energy storage sector. He emphasized that WHES is an integrated supplier of battery solutions, with over 800 MWh of installed capacity across Europe, mostly in the Netherlands and the Benelux region, but also present in Slovenia, Bosnia and Herzegovina, and Croatia.

– Storage is not on the same level as RES. In this sector, you need chemistry, software, communication, and everything must function together – Šuša stated. He added that WHES manufactures all key components in-house, from PCS to EMS. He also sees the transition of experts from the RES sector into storage as a sign of this market’s maturity. In addition, he stressed the importance of depreciation planning, given that the typical battery lifespan is about 10 years.

Marko Vukobratović, Ph.D., Director at Versolvio, compared the development of battery systems in Europe and the U.S. He warned about the slowness of European investors, who often wait for legal frameworks and best practices before venturing into investments, while the decisions in the U.S. and Asia are made faster and more boldly.

– Capital is cautious, and indecisiveness holds us back more than the law – Vukobratović said, adding that Versolvio currently has 50 MWh of implemented battery projects and another 300 MWh under development. He warned that the time of the „plug-and-play“ approach is over, and that power plants should be maintained and monitored daily. He also reminded of the vulnerability of energy systems in the context of cyberattacks.

Mario Valčić, Director of Siemens Smart Infrastructure, spoke about managing RES power plants. He presented how Siemens develops and implements digital solutions for intelligent plant management, stressing their critical importance for grid stability in the era of renewables. He particularly highlighted the value of advanced software tools that facilitate communication between the plant and the transmission system operator, enabling investors to quickly and efficiently monetize electricity production. According to him, such technology becomes necessary with the increase in the number of decentralized and variable sources, such as solar power plants.

– While nuclear and thermal plants have always had sophisticated control and dispatch systems, in the beginning, it was assumed solar plants didn’t need that. But a solar plant is still a production facility. Software enables its operation to be monitored, optimized, and understood by the grid operator – Valčić explained. In addition to the functionality, he also underlined the vital importance of cybersecurity.

– If someone hacks into a 1 MW plant and shuts it down, it is no big deal. But if it happens with a large system, we are talking about a potential blackout – he warned.

On the final day of the largest national conference on renewable energy sources, the agenda will shift to topics that connect energy and the community: cogeneration facilities, the role of cities and municipalities in RES development, and environmental issues.