Investment Stalled Due to Croatia renewable energy risks
Croatia’s renewable energy sector is in crisis, with severe delays and regulatory obstacles threatening future investments. Over 5,000 megawatts (MW) of potential projects are stalled in the planning phase, unable to connect to the country’s fully developed electricity grid. According to industry experts, legal uncertainties and a lack of regulatory clarity are discouraging investors from moving forward with new projects.
Igor Grozdanić, President of the Renewable Energy Sources of Croatia (OIEH) association, warned that the country risks losing over €17 billion in potential investments if these issues are not resolved. The OIEH is a key industry group representing renewable energy producers in Croatia.
Grozdanić highlighted that the current legal framework governing renewable energy projects is riddled with contradictions. These inconsistencies create confusion and make it difficult for investors to secure the necessary permits to begin construction. As a result, many projects remain stuck in the early stages of development, unable to progress. Despite these challenges, Croatia is on track to exceed 1 GW of solar power capacity by 2025, showing the underlying potential within the sector.
Grid Capacity Reached Amidst Croatia renewable energy risks
One of the biggest challenges facing Croatia’s renewable energy sector is the lack of available grid capacity. The country’s electricity network has reached its limit, making it impossible to connect new projects. This is particularly problematic for investors who have already poured millions into planning and development, only to find that there is no way to bring their projects online.
Grozdanić pointed out that the backlog of 5,000 MW in planned projects is a direct result of the grid’s current limitations. Without additional capacity, these projects cannot move forward, and investors are left in limbo. The lack of progress is also affecting Croatia’s ability to meet its renewable energy targets. The country is set to host Solar Flex Croatia 2025, a conference focusing on advancing the solar energy industry in Southeast Europe, highlighting the importance of addressing infrastructure and grid capacity issues.
The country has set ambitious goals for increasing the share of renewables in its energy mix, but without significant changes to the grid infrastructure and regulatory framework, these targets are unlikely to be met. Croatia aims for a target of 2.5 GW of solar power by 2030, emphasizing the need for overcoming current grid limitations.
Need for Regulatory Reform Addressing Croatia renewable energy risks
The OIEH is calling for urgent action to address the regulatory and legal issues that are stalling renewable energy projects. Grozdanić emphasized the need for a clear and consistent legal framework that would provide investors with the certainty they need to move forward. He also stressed the importance of increasing grid capacity to accommodate the growing number of renewable energy projects.
The Croatian government has acknowledged the challenges facing the renewable energy sector, but progress has been slow. Industry leaders are urging policymakers to prioritize reforms that would help unlock the billions of euros in potential investments currently at risk. One positive development is the Korlat Solar Plant, funded by a €31.6 million loan from the EBRD, which will be Croatia’s largest solar power project with a capacity of up to 99 MW, demonstrating potential for growth with the right support.
The stakes are high for Croatia’s renewable energy sector. If the country fails to address the regulatory and grid capacity issues, it could miss out on a significant economic opportunity. The €17 billion in potential investments represents not only a boost to the country’s economy but also a chance to reduce its reliance on fossil fuels and move towards a more sustainable energy future.
Industry experts are hopeful that with the right reforms, Croatia can overcome these challenges and become a leader in renewable energy. However, time is running out, and action is needed now to ensure that the country does not fall behind in the global race for clean energy.
