Almost all major investments are on hold, and they could cover the electricity needs of almost 400,000 households, says Maja Pokrovac, managing director of RESC, for Slobodna Dalmacija.

Read the full interview with journalist Ljubica Vuko below.

What are the latest available data on the use of Renewable Energy Sources?

The Croatian Renewable Energy Association (RESC) issues a monthly report on energy trends with a special focus on renewable energy sources. According to the latest data, in the first four months of this year, hydropower plants produced the most electricity, accounting for 44.1% of the total mix. Other renewable sources followed with 22.3%, fossil fuel power plants with 19.7%, and the Krško Nuclear Power Plant contributed 12.5%. Imports averaged 1.3% for the first quarter of this year, but in April alone, we imported 24.3% of our electricity. The main reason for this was the regular annual overhaul of the Krško Nuclear Power Plant. However, we question why Croatia, with such potential for exploiting natural resources, has to rely on others. We must also remember that the most expensive energy is the one you have to buy.

Which of these sources are most common in Croatia?

Among renewable sources, hydropower is the most prevalent, averaging around 40% of the total electricity production mix. Wind energy follows with 15%, biogas, and biomass plants contribute around 5%, while solar energy utilization is the weakest at about 2%. Considering our potential, it’s disheartening that we are at the bottom of Europe when it comes to solar energy.

How is Croatia progressing in the green transition?

With this mix, Croatia ranks among the highly decarbonized countries (even 80% of the energy we produce comes from clean sources), but only in terms of electricity production. If we look at the share of renewable sources in energy consumption, the figure is much lower, around 30%. The goal set by the EU, and by ourselves, for 2030 is 44%. Given that hydropower production will increase by only 320 GWh by 2030 (with the commissioning of the Senj 2 hydroelectric system), achieving the set goal will require an increase in production from other renewable sources, primarily solar power plants, wind farms, biomass, biogas, and geothermal power plants.

Looking specifically at transport, the figure is even more disheartening, with only 2.4% of consumption coming from renewable sources, while the goal for 2030, which only Sweden has met so far, is 29%.

We hope that the new Ministry of Environmental Protection and Green Transition will strive to intensify, in line with its name, the transition to green energy. This primarily depends on simplifying and speeding up the procedures for issuing permits for the construction of facilities that produce energy from renewable sources. Comparing ourselves with other EU countries, we rank third in the complexity of issuing permits. We have already received several “slaps on the wrist” from Europe for not implementing directives that prescribe the acceleration of permit issuance for RES projects. Another important step towards achieving the goals is the cooperation between ministries and institutions because if they do not follow each other, there is a high possibility that projects will get stuck in some drawer.

You have pointed out the problem of issuing permits that hinders investments. Which permits are involved, and has anything improved in recent months?

Permits under the jurisdiction of the Ministry of Environmental Protection and Green Transition are related to environmental impact assessment (EIA) and screening for environmental impact assessment (SEIA). For example, EIA procedures, which are supposed to take four months (can be exceptionally extended by another two months), actually take two years in practice, and often longer. SEIA procedures should be completed within two months, but they actually last on average 10 to 12 months, often longer.

We should also mention HOPS, which has prescribed that the application for network connection (so-called EOTRP – optimal technical connection study) can only be obtained once a year, from May 1 to May 15. If investors miss even one day because they did not obtain the necessary permits on time, they have to wait until the next year to submit the application for connection, which is a prerequisite for obtaining the next permit.

Here is another paradox. Since RES projects are not connected to municipal infrastructure (water supply, drainage), do not have public lighting or waste disposal needs, local self-government units should not charge investors a municipal fee, although they do.

We could write a whole book about the inconsistencies faced by investors in RES projects, and we will. Soon we will publish the document “pOIEdnostavi,” (RESimplify) in which we will propose how all these procedures can be rationalized and shortened.

What is the value of investments in recent years, and how many are currently on hold?

Almost all major investments have been on hold in recent years. The primary reason for this is that the Croatian Energy Regulatory Agency (HERA) has not decided on the amount of the connection fee for a year and a half. Because of this, at least 1300 MW of RES projects are currently on forced hold in Croatia, and this number is increasing daily. The most conservative estimate is that the investment value for 1300 MW plants is 1.3 billion euros. If we add investments in geothermal projects already in development, we come to a value of investments equivalent to four Pelješac Bridges on hold. Even more illustratively, these 1300 MW projects could theoretically cover the electricity needs of almost 400,000 households, or 1/3 of households in Croatia.

What are Croatia’s goals for using RES by 2030, and do you think they are achievable?

The goals set by Croatia for 2030 are not ambitious enough. For example, according to the climate and energy draft, we have stated that we will install less than 1000 MW of solar power plants. Our goals are insufficient because we installed almost 240 MW just last year. The OIEH estimates that by 2030, based on investor interest, we could have 2000 MW installed in wind farms (currently we have 1160 MW), while we have the potential for 4000 MW in solar power plants (currently at 538 MW). New geothermal capacities of about 140 MW are also in development (currently we have 10 MW), and in the continental part, we must strive to revitalize biogas and biomass plants, which, along with geothermal power plants, have a balancing role as they can produce energy 24 hours a day. We will discuss all this at the Renewable Energy Days conference we are organizing in Pula from June 12-14 this year, with participation from ministry representatives, sectoral institutions, the academic community, equipment manufacturers, the banking and legal sector, investors, counties, and local communities. Our goal is to transform Croatia into an energy-independent and green country.