Croatia Renewable Energy
Croatia has excellent potential for the development of renewable energy resources.
Croatia has excellent potential for the development of renewable energy resources. Currently, the country covers 28,02% of the gross final energy consumption by renewable energy. Hydropower is the dominant renewable source at this moment; significant funds have been invested in the production of electrical energy from wind power, and solar power has the most significant potential for growth in the upcoming years. According to the Energy Institute Hrvoje Požar study conducted in 2018, Croatia will cover 32% of its energy consumption from renewables by 2030, and 56.3% by 2050. In order to achieve that, 40 to 50 million USD will be invested annually.
Incentives for further development of renewable energy resources are abundant. Croatia still imports about half of its energy consumption, and it could save significant funds by increasing the production of renewable energy. The estimated technical potential of solar power plants in Croatia is 5,303 MW, with an estimated production of 6,364 GWh of electrical energy annually. Croatian regions Istria and Dalmatia have 30% and 40% more insulation compared to German city Munich, creating 30 to 40% earlier return on investment. Additionally, the EU Green Deal will further support and partially fund the development of renewables in Croatia.
HEP, a state-owned electrical energy company, is the largest developer of renewable energy projects in Croatia. The company is currently building a wind farm Korlat with 58 MW power and has just announced the development of a solar farm at the same location, with 75. MW power. Besides these large projects, business entities in the manufacturing industry, tourism, and retail centers are strong market drivers. The price of electrical energy for business entities in Croatia has grown around 30% in the last two years, providing a solid argument for its own production of energy from renewable sources. The use of solar power for households is also affordable and has been simplified with the new regulation, often being preferred source of energy for weekend houses without connection to the grid.
Croatia, as well as the European market, is dominated by European companies, especially in the wind segment. The strongest opportunities for U.S. companies in Croatia are in the smart grid as well as in other, technologically advanced areas.
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