Dispatch from Croatia | August ‘26

Renewable energy generation in Croatia is increasing, but so are negative electricity prices. Battery storage capacity remains limited, while both investor interest in new projects and regulatory activity climb. At the same time, new large consumers such as the planned one gigawatt (GW) Pantheon AI data centre will add further pressure to the grid. Recent heatwaves, and reduced output at the Krško nuclear plant, have also shown how vulnerable the energy system can be when supply falls during periods of high demand. The challenge is therefore no longer only how to produce more low-carbon electricity – but how to store it and make it available when needed.

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Factsheet

14 Aug 2026, 08:00 Katarina Gulan, Marina Kelava

CLEW Guide – Croatia caught between LNG ambitions and abundant untapped renewable energy potential

Stories to watch in the weeks ahead

New BESS regulation in sight – Croatia is finalising the regulatory framework for battery and energy storage systems (BESS). The amendments to the Electricity Market Act are expected to enter into force in autumn 2026, paving the way for a comprehensive regulatory BESS framework. One of the key unresolved issues is how network charges will be calculated for standalone battery systems.
Bill on geological energy resources – The Croatian government has introduced a bill for a unified framework for the exploration and use of key geological energy resources – including oil, natural gas, geothermal energy and the storage of carbon dioxide and other gases. The bill would introduce new investment models and would allow a more active role for the state in selected projects. It is expected to proceed to its second reading during Parliament’s autumn session, which begins on 15 September.

The latest from Croatia - last month in recap

Major data centre clears grid hurdle – The new Pantheon AI data centre project has received approval from transmission system operator HOPS to connect its planned facility in Topusko, central Croatia, to the transmission grid. The approval confirms the technical and regulatory feasibility of the connection. The data centre will require more than 500 million euros in supporting infrastructure, including 280 kilometres of new transmission lines, a 400 kilovolt substation, roads and fibre-optic infrastructure. The new grid infrastructure is also expected to enable the connection of more than 5 GW of renewable energy capacity. Construction is scheduled to begin in 2027, with operations expected to start in early 2029.
Heatwave sends power prices soaring – Electricity prices in Southeast Europe surged by 50 to 100 percent between 31 July and 6 August, as extreme heat drove up demand while nuclear and hydropower generation plummeted. Slovenia and Croatia recorded the highest prices in the region, with Slovenia reaching 717 Euro per megawatt hour (EUR/MWh) on 3 August. For comparison, the average day-ahead base price on the Croatian Power Exchange (CROPEX) was 118.89 EUR/MWh in July. Low river levels and high water temperatures forced nuclear plants in Hungary, Romania and Slovenia to reduce output, while hydropower production also declined across the region. Electricity consumption also increased by up to 20 percent as the extreme heatwave drove up cooling energy demand. For Croatia, the reduction in output at the Krško Nuclear Power Plant is particularly significant, as the plant covers around 15 to 20 percent of its domestic electricity demand.
Negative power prices rise – The number of hours with negative electricity prices on CROPEX increased by 30 percent in 2025 compared to the previous year, according to the Croatian Energy Regulatory Agency’s (HERA) annual report. Negative prices often occur when high solar generation creates surplus electricity. The trend highlights the growing need for energy storage, particularly battery energy storage systems. While Croatia had only 11 MW of battery capacity as of March 2026, investor interest in batteries has risen.
Investments in battery-powered trains – Croatian passenger rail operator HŽ Putnički Prijevoz is acquiring six battery-powered trains and building a hybrid charging station in Kotoriba, northern Croatia. The project, worth 53.6 million euros, will be financed through the EU’s Modernisation Fund. The trains will operate on both electrified and non-electrified lines and are scheduled to enter service between 2028 and early 2029.
Mapping major carbon storage potential – The Croatian Hydrocarbon Agency has published the country’s first comprehensive study on the potential of geological carbon storage, including separate onshore and offshore maps and a feasibility study for the Bockovac site in eastern Croatia. The study has identified more than one billion tonnes of possible storage capacity. Around 346 million tonnes could be stored in the Pannonian Basin and 717 million tonnes in the Croatian part of the Adriatic Basin. The study has also identified suitable onshore and offshore geological structures for permanent carbon storage.
Launch of first energy community – Residents of Špičkovina, northern Croatia, are sharing locally produced electricity in the country’s first energy community. Although these communities have been legally permitted since 2021, complex administrative procedures and difficulties in securing grid access delayed practical implementation, with the community in Špičkovina becoming the first to complete the process. A 64 kilowatt (kW) solar power plant, installed on the local volunteer fire brigade building, supplies electricity that is shared among 17 members, including households, the fire station and a small business. Members are expected to see direct savings on their electricity bills.

Katarina’s picks – reading recommendations & events

Business Forum to explore energy, AI and regional investment – The third edition of the Master Business Forum will take place in Rovinj from 8 to 11 October 2026, bringing together business leaders, institutions, investors and academics from Croatia and abroad. The programme will cover energy, defence, artificial intelligence, technology, finance, healthcare, tourism, sustainability and investment.

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