Country series: Sun rising for Croatia

Major opportunities

According to the independent Croatian grid system operator HOPS 23.5 per cent of Croatia's electricity consumption in 2022 was met through power imports from abroad at sky-high prices due to the energy crisis in Europe.

Croatia owns 50 per cent of the nuclear power plant Krško in Slovenia, but the electricity supplied from there does not count as an energy import due to Croatia's ownership stake. Croatia has no nuclear power plants on its own territory. 

Most of the electricity was imported during the summer months. The goal is to make Croatia independent of power imports by better utilising solar resources, particularly on the coast along the Adriatic Sea.

"In October 2021, the Croatian authorities published new rules for renewable projects, but since these have still not entered into force, the market is in limbo. The authorities now want to concentrate the market around large project developers who must pay a deposit of 7000 euros per installed MW. This is a significant change," says Bellanger.

In 2020, Statkraft acquired the British solar company Solarcentury, which had already started activities in Croatia. Statkraft opened its own office in the capital Zagreb in July 2021.

"We've started on a small scale because we want to test the market. Three people currently work at Statkraft's office in Croatia, but we plan to hire two more during 2023. We want to demonstrate Statkraft's ability to develop profitable renewable projects, which is why we've now hired project developers who contact municipalities and landowners to find suitable locations," says Bellanger.

Statkraft aims to commission at least 50 MW of wind and solar power plants per year, which is more than 10 per cent of all projects connected to the Croatian power grid annually.

"This means that we will develop hundreds of MW, mostly solar energy. We're also looking at a large wind project in southern Croatia, so we're proceeding with both renewable technologies," he says.

Cultural dimension

A total of 15–20 people from Statkraft are working on the venture in Croatia, including the project developers in Zagreb.

"We draw on resources we already have in Albania, Italy and France, and the team in Croatia has visited the Netherlands and Spain to share with the teams there," says Bellanger.

Compliance is a key word for Statkraft's investments in Croatia. The country is considered to have a medium to high risk of breach of compliance with ethical guidelines that Statkraft sets for its businesses.

"It’s important to learn to adapt to new cultures when entering new markets. Due to the current lack of laws or specific regulations on certain topics and areas in Croatia, it’s useful for our team in the country to have support and guidance on compliance issues. The head of Compliance Continental Europe in Statkraft, Paula Pereira, visits the team in Zagreb every quarter to discuss various dilemmas we face or may face in given situations," says Arnaud Bellanger.