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Dispatch from Croatia | November ‘26

Croatia’s energy sector is facing a busy period of investment and regulatory change. Key developments include plans for solar power plants along motorways, new environmental legislation, an electricity distribution network investment exceeding three billion euros, and 30 million euros in EU funding for geothermal energy. The country is also advancing the implementation of the EU’s carbon border tax, amending its Electricity Market Act and accelerating railway modernisation, with a further €6 billion in rail investments planned by 2035. Meanwhile, illegal waste disposal cases in Gospić, Benkovac and Poznanovec raise concerns about environmental oversight, while plans for a 400 MW floating solar power plant in Končanica could open new opportunities for renewable energy development.

*** Our weekly Dispatches provide an overview of the most relevant recent and upcoming developments for the shift to climate neutrality in selected European countries, from policy and diplomacy to society and industry. For a bird's-eye view of the country's climate-friendly transition, read the respective 'Guide to'. ***

Stories to watch in the weeks ahead

  • Motorway solar plants - Croatia's motorway operator Hrvatske autoceste (HAC) is reconsidering the implementation model for four planned solar power plants with a combined size of about 36 hectares along the country's motorway network, following the completion of preliminary project designs and an assessment of the required investment. Although the development of solar power plants along motorways has been discussed for some time, progress has so far been slow, with the projects yet to move into the construction phase. The latest reassessment suggests that further work is still needed to determine the most suitable approach to their implementation and financing. The projects, initially planned at four locations across continental Croatia, are currently undergoing further evaluation as HAC examines opportunities to optimise the proposed solutions and identify alternative financing and implementation models.
  • New environmental legislation - Croatia is preparing a package of new environmental and climate regulations aimed at improving air quality, strengthening investment in the green transition and introducing clearer rules for the management of public funds. The Ministry of Environmental Protection and Green Transition presented new regulatory proposals, including a new Air Protection Act, rules governing the Modernisation Fund, a carbon certification framework and regulations on the use of donations and own-source revenues by public institutions. One of the most significant changes concerns the proposed new Air Protection Act, which introduces stricter air quality standards from 2030, particularly for microscopic particles (particulate matter), as well as nitrogen dioxide (NO2). The other proposal introduces a framework for carbon certification, which could allow Croatian farmers to generate additional income by demonstrating and certifying carbon removals achieved through agricultural practices.
  • First floating solar plant - The public consultation for Croatia’s first floating solar power plant in Končanica, near Daruvar, has been completed, marking an important step towards the development of what could become one of Europe’s largest floating photovoltaic facilities. With a planned capacity of approximately 400 MWp, the project would be a first of its kind in Croatia. It combines solar electricity generation with the development of intensive fish farming at the existing Končanica fishponds. The project is particularly worth following as it could establish an important precedent for floating solar technology in Croatia. If successfully implemented, it could open the door to similar projects at other fishponds, reservoirs and suitable water surfaces across the country. 

The latest from Croatia - last month in recap

  • Investment in Electricity Distribution Network - HEP Operator of the Distribution System (HEP ODS) plans to invest €3.32 billion in the development of Croatia’s electricity distribution network over the 2027–2036 period, according to a new ten-year investment plan submitted for public consultation by the Croatian Energy Regulatory Agency (HERA). The plan outlines investments aimed at strengthening the electricity network and accommodating growing demand driven by renewable energy projects, major infrastructure developments and the electrification of transport. A significant part of the investment programme will focus on expanding the network's capacity to accommodate new customers; almost two billion euros will be invested directly in the distribution network over the ten-year period. The planned investment programme reflects a significant increase in applications for new connections to the electricity distribution network.
  • Implementing CBAM - Croatia’s Parliament has backed legislation establishing the national framework for implementing the EU’s carbon border tax (CBAM), which aims to ensure fairer competition between European producers and imports from countries with less stringent climate policies. The law also sets out the responsibilities of national authorities, inspection procedures and penalties for non-compliance. State Secretary at the Ministry of Environmental Protection and Green Transition Željko Vuković said Croatia was particularly exposed to imports from countries outside the EU because of its geographical position and close economic ties with neighbouring markets that operate under different climate rules and carbon pricing systems. CBAM is also intended to encourage cleaner industrial production beyond the EU by making the carbon emissions embedded in certain imported goods a factor in their cost.
  • Geothermal energy development - Croatia has secured 30 million euros in non-refundable EU funding for the next phase of its geothermal energy development programme, which will see four additional geothermal wells drilled in Velika Gorica, Osijek, Vinkovci and Zaprešić. The objective is to establish the technical conditions for sustainable geothermal energy production and its future integration into existing district heating systems. The geothermal resources will primarily be used to supply heat to households, schools, kindergartens and other public buildings. They could also support electricity generation, agricultural production, greenhouse cultivation and other economic activities.
  • Railway investments - Croatia is currently carrying out railway infrastructure projects worth 1.7 billion euros, with a further 6 billion euros in investment planned by 2035. The programme is intended to modernise the country’s rail network, increase passenger and freight capacity, improve safety and strengthen connections between Croatian ports and European markets. The scale of the ongoing investment cycle was outlined by Žarko Tušek, State Secretary at the Ministry of the Sea, Transport and Infrastructure, during an appearance on Croatian public broadcaster HRT. The first results of the current investment cycle could become visible within two to three years, while the full benefits of the modernisation programme are expected over the next decade. However, infrastructure improvements will need to be accompanied by more reliable and punctual train services, as well as better maintenance of rolling stock, experts noted.
  • Electricity Market Act reform - The Croatian Government has approved amendments to the country's Electricity Market Act, introducing a series of measures designed to strengthen energy security, improve consumer protection and support the development of renewable energy. The new framework explicitly prohibits electricity disconnections for the most vulnerable groups of the population. Another important objective is to simplify administrative procedures for sharing electricity generated from renewable energy sources at the local level. The proposed legislative changes also focus on accelerating administrative procedures for new energy projects. 

Melita’s picks – reading recommendations & events

  • Smoke Screen – In a shameless act of self-promotion, my first pick is a new book published by the media outlet I work at, Climate Portal, in cooperation with Telegram called “Smoke Screen: A History of Climate Change Denial”, which explores the decades-long efforts to undermine climate science and delay climate action. It traces how fossil fuel companies, lobbyists, politicians, media outlets and other influential actors contributed to spreading disinformation and sowing public doubt. It really is a good read, and I don’t say this because I authored several of its chapters. 
  • Transport conference - “A new era of transport 2026” will take place on 26 November 2026 in Zagreb, bringing together experts and professionals to discuss the latest trends, challenges and solutions shaping the future of transport, such as smart mobility, autonomous vehicles and the digitalisation of transport, as well as financing for innovative projects.
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