CLEW Guide – Croatia caught between LNG ambitions and abundant untapped renewable energy potential
Contents
With its “CLEW Guide” series, the Clean Energy Wire newsroom and contributors from across Europe are providing journalists with a bird's-eye view of the climate-friendly transition from key countries and the bloc as a whole. You can also sign up to the weekly newsletter here to receive our "Dispatch from..." – weekly updates from Germany, France, Italy, Croatia, Poland and the EU on the need-to-know about the continent’s move to climate neutrality.
With contributions by Katarina Gulan and Melita Vrsaljko.
Key background
- Early national parliamentary elections in April 2024 saw the long-dominant centre-right HDZ party win most seats in parliament but fall short of an outright majority. In the new coalition between HDZ and the Homeland Movement, a new Ministry of Environmental Protection and Green Transition has been established, led by former Agriculture Minister Marija Vučković. This ministry aims to drive the green transition and sustainable development but concerns about the efficiency of this change persist, especially with key sectors like energy and economy under the Homeland Movement. Energy sector stakeholders emphasise that effective inter-ministerial collaboration and addressing administrative delays in renewable energy project approvals are crucial.
- Thanks mainly to its large hydropower plants, Croatia has a significant share of renewable energy in electricity production, although hydropower plants recorded a 17.8 percent drop in production (to 1,656 GWh) in the first quarter of 2025 compared to the first quarter of the previous year. This is attributed to worsened weather conditions. At the end of 2024 the renewable fleet reached about 3.8 GW, consisting of 1.93 GW hydro, 0.99 GW wind, 0.88 GW solar and 0.04 GW from other sources. Eurostat reported that 73.7 % of domestic electricity production in 2024 came from renewables, with hydropower providing the largest share.
- Croatia currently imports energy (100 percent of its coal, 40 percent of gas and 80 percent of oil needs) and has been particularly vulnerable to the rise in fossil fuel prices.
- In 2021, approximated domestic greenhouse gas (GHG) emissions in Croatia were 23.3 MtCO2-eq, 2.1 percent lower compared to 2020 and 5.6 percent below pre-pandemic levels. Overall, net domestic emissions, including the land use, land use change and forestry (LULUCF) sector, were 41.9 percent lower than in 1990.
- Croatia’s revised 2030 National Energy and Climate Plan aims to reach a 42.5 percent share of renewable energy by 2030 and a 62 percent drop in emissions within the European Emissions Trading Scheme (ETS).
- Croatia is among the EU member states highly vulnerable to climate risks. Nearly a quarter of the economy is based on sectors potentially vulnerable to climate change and extreme weather, including agriculture and tourism.
- Two rounds of local elections were held in Croatia (18th May and 1st June), but the green transition topic was almost entirely absent from the campaign. The elections confirmed the dominance of the ruling centre-right party, the Croatian Democratic Union (HDZ), whose candidates won in most municipalities, cities, and counties.
- Croatia established a new state body focused on energy issues. At the beginning of September 2025, economy minister Ante Šušnjar founded the Energy Council, whose main objective is to coordinate the implementation of the NECP (National Energy and Climate Plan) and energy policy.
- The Croatian Parliament has passed the Act on the Construction of a Radioactive Waste Management Centre for the Krško Nuclear Power Plant to allow the completion of the environmental impact study. Croatia is required to begin the removal of low- and intermediate-level radioactive waste from the Krško plant (built in 1981 as a joint venture between Slovenia and Croatia, then both part of Yugoslavia) by early 2028. The proposed location for the waste facility is the former Čerkezovac barracks on Trgovska Gora, near the border with Bosnia and Herzegovina.
- The capacity of the LNG terminal on Croatia’s Krk Island has been increased to 6.1 billion cubic meters per year. At the same time, Croatia is investing in the expansion of its gas pipeline network toward Slovenia, Hungary, Bosnia and Herzegovina, and Serbia.
Major transition stories
- Energy independent islands – In 2020, Croatia initiated the signing of the Memorandum of Split (memorandum of understanding implementing the Valletta Political Declaration on Clean Energy for European Union Islands), which aims to improve the energy transition on the islands. The document ensures detailed support to the islands in preparing their strategies for the process of transition to clean energy and cooperation of energy communities on the islands. The biggest island in Croatia, Krk, has been aiming to become one of the first energy independent and CO2 neutral islands in the Mediterranean.
- Hydrogen Valley – Croatia is part of the North Adriatic Hydrogen Valley project with Slovenia and Italy. The project started in September 2023 and features 17 pilot projects for the production of more than 5,000 tonnes of renewable hydrogen per year from renewable energy sources and its storage, distribution and use.
- Use of geothermal energy – Northern Croatia is abundant with geothermal energy, a potential which has so far been scarcely used but the energy crisis has enticed many local communities to start local projects, which are mostly in research phases. For example, Bjelovar plans to heat the whole town with geothermal energy.
- Solar potential – The country has one of the highest insulations in the EU, between 2,000 and 2,700 hours of sunshine a year. According to analysts from the association SolarPower Europe, Croatia has the potential and opportunity to install up to 7 GW of solar power by 2030 (a few hundred MW installed today). By the end of 2024 Croatia had 876 MW of installed solar capacity, a 40% rise compared with 2023. In April 2025 the country passed the symbolic 1 GW milestone in cumulative installations. Croatia was the slowest among the 12 EU states in a 2022 Ember report in permitting onshore wind and solar projects.
- Revised NECP. The final version, submitted to the European Commission on 31 March 2025, sets a 42.5 % renewable share in gross final energy consumption and a 42 % reduction in total greenhouse-gas emissions by 2030 relative to 1990.
- Electrification of marine transport – Croatia used to have an important shipbuilding industry, and now starts building electric marine vehicles. A zero emission passenger sailing ship is being built in Split. iCat company is producing solar electric catamarans. Pearlsea Yachts is producing the country’s first electric speedboat. Jadroplov company has designed one of the largest ferries in the Adriatic, which would be able to transport a thousand passengers and 400 vehicles on electric power if they are able to resolve financing.
Nuclear task force. In February 2025 the government set up an inter-ministerial body to assess small modular reactors (SMRs). Croatia’s intentions to build a nuclear power plant on its territory are being mentioned more frequently, with locations such as Erdut (in eastern Croatia) and areas near Ivanić Grad (in central Croatia) reportedly under consideration. In March 2026, the Croatian parliament introduced a draft law on nuclear energy development, setting out a legal framework for expanding nuclear capacity in the country. The strategic goal is to increase the share of nuclear in electricity production to at least 30 percent by 2040, up from about 16 percent today, which Croatia currently obtains through its ownership stake in the Krško nuclear power plant in Slovenia.
- Energy storage in development - Following minor delays, Croatia’s first large-scale battery storage system in Šibenik, which is subsidised by EU funds and the biggest of its kind in South-East Europe, has obtained all necessary permits and is now under construction. It is expected to start operations by the end of the year. The first national report on battery energy storage finds that integrating higher shares of renewable energy into the electricity system requires the parallel development of both the grid and storage capacity. The analysis of transmission constraints and storage needs in Croatia identifies 22 priority locations, with a combined potential of up to 1,700 megawatts (MW) of battery capacity.
Data center investments - In April 2026, Croatia signed a set of high-value agreements with the United States covering LNG expansion, regional gas infrastructure in the Balkans, nuclear cooperation, and a proposed 50-billion-euro AI data centre in central Croatia. The data centre could become one of the largest in Europe, raising concerns over future power demand and the capacity of the national grid.
Sector overview
Energy
- Emissions from energy supply in 2024 contributed 17 percent of the country’s total greenhouse gas emissions.
- Croatia imports nearly 60 percent of the total energy it consumes, according to the report Energy in Croatia 2024 published by the economy ministry and the energy institute Hrvoje Požar. Croatia’s imported energy mix is dominated by fossil fuels. Petroleum products such as gasoline and diesel accounted for 42 percent of total energy imports in 2024, with an additional 20 percent as crude oil. This was followed by natural gas at 24 percent. Electricity made up 12 percent, while coal and coke represent a small share of about 2 percent, and renewable energy sources and biofuels contribute roughly 1 percent.
- According to data from Hrvatska elektroprivreda (HEP), Croatia imported 7 TWh of electricity in 2025, out of a total available electricity supply of about 20 TWh. This means that roughly 36 percent of the electricity available in the Croatian system was imported in the last year.
- Croatia owns half of the Krško nuclear plant, which is located in Slovenia. The plant was scheduled to close in 2023 but its lifetime has been extended for 20 more years, until 2043. It is counted under imports in the energy mix statistics.
- Plomin, Croatia’s only coal power plant, is to be closed by 2033 the latest.
The energy crisis fuelled by Russia’s war on Ukraine prompted plans by the Croatian government to enlarge the capacity of the LNG terminal on Krk island. The terminal was opened with EU support in 2021 It was expanded and fully completed in 2025.
- According to an independent report, Croatia could exit gas by 2035.
- The wind power plants’ output in 2022 was 2.3 TWh, or 12.5 percent of the country’s electricity consumption. Operational capacity remains 1.19 GW. The revised NECP raises the target to 2.5 GW by 2030.
- Croatia’s offshore wind potential is estimated at 25 GW but it has not been developed yet.
- Changes to the Renewable Energy and High-Efficiency Cogeneration Act simplify grid connections for small producers and energy communities and introduce lighter rules for prosumers.
Industry
- Responsible for 29 percent of total GHG emissions in 2024.
- After Croatia achieved independence in 1991, industrial production has declined and tourism has developed. Today, tourism is the country’s most important source of economic growth. Major industries include shipbuilding, construction, petrochemicals and food processing.
- Croatia plans to use green hydrogen in decarbonising its industry. In 2022, the country adopted a national strategy for hydrogen by 2050 with the aim of increasing the production of renewable hydrogen, promoting its use in the economy and decreasing GHG emissions.
- According to one report, the industry sector could replace gas and coal with electricity, renewable hydrogen and hydrogen-based fuels by 2035.
Buildings
- The sector is responsible for 11 percent of total emissions in 2024.
- In Croatia, 42.3 percent of total energy is consumed in buildings. About 62 percent of this energy is spent on space heating, 15 percent on lighting and electrical devices, 12 percent on cooking and 11 percent on preparing hot water in households.
- The Long-Term Strategy for the Reconstruction of the National Building Stock by 2050 plans to transform the existing building stock into a highly efficient one by 2050. This means increasing the renovation rate from the current 0.7 percent per year to 3 percent in 2030, then to 3.5 percent from 2031 to 2040 and to 4 percent from 2041 to 2050.
- Since 2020, all new buildings must meet the requirements for Nearly Zero Emissions Buildings.
- According to an analysis by Croatia Green Building Council (CGBC), Croatia lacks 24,500 qualified workers who could work on energy renovation of buildings. The education of workers about energy-efficient technologies is one of the biggest challenges for the achievement of energy and climate goals by 2030.
Mobility
- In 2024, the transport sector was responsible for 40 percent of total greenhouse gas emissions in Croatia.
- In transport energy consumption, the largest share, more than 90 percent, is represented by road transport.
- One of the obstacles to cleaner transport is the average age of passenger vehicles, which is more than 12 years. For comparison, the newest passenger cars can be found in Luxembourg (7.6 years).
- While Croatia subsidises the purchase of electric vehicles since 2014, the overall share of EVs is still low.
- The country’s National Energy and Climate Plan (NECP) points out the key role of biofuels and electromobility. The 2030 targets include a 13.2 percent share of renewable energy sources in the transport sector’s final energy consumption. In 2030, 3.5 percent of total road passenger activity is projected to be via hybrid, electric and hydrogen-powered vehicles.
- Croatia has announced plans to invest more than 4 billion euros in rail infrastructure over the next ten years. Twenty-five major infrastructure projects are being implemented, 16 of which are co-financed by the European Union.
Agriculture
- The agriculture sector contributed 11 percent of the country’s total greenhouse gas emissions in 2024.
- Mineral fertilisers are the main source of nitrous oxide emissions – another potent greenhouse gas (29 percent of sector N2O emissions and 15 percent of total sector emissions) along with methane emissions from livestock farming (46 percent of total sector emissions).
Land use, land-use change and forestry (LULUCF)
- Since 1990, despite fluctuations, the land use, land use change and forestry (LULUCF) sector in Croatia has consistently been a significant source of greenhouse gas (GHG) removal through sinks.
- As a result of climate extremes and fires, and sanitary logging from the development of windbreaks, there was a decrease in removals by carbon dioxide (CO2) sinks, which resulted in a 13-percent reduction in carbon sink capacity in 2023 compared with 1990.
- By 2027, Croatia aims to develop a national land management strategy, according to the NECP.
Find an interviewee
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08 May 2026, 09:00
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