Power purchase agreements have become one of the main instruments for financing renewable energy without subsidy support, and Croatia is no exception to that logic. PPAs allow operators of solar and wind installations to refinance their generation assets on a merchant basis, reducing dependence on state support schemes. Yet while PPA-based project financing has gathered momentum across much of Europe, significant barriers remain in Croatia – a finding that sits at the centre of a new report mapping the regulatory framework, market barriers and operational guidelines shaping the country's nascent PPA market.
Get the latest market updates for solar investors - sign up for our monthly newsletter
The report draws on a series of expert conferences held by the Croatian Renewable Energy Association (OIEH) over recent months. It opens by laying out the case for direct supply contracts: for producers, PPAs offer long-term revenue certainty; for consumers, a degree of insulation from volatile wholesale prices and a clearer basis for energy cost planning. At the broader market level, wider PPA adoption can support investment in new renewable capacity, reduce emissions and strengthen energy independence.
New models with citizen participation
The Croatian PPA market, however, is still at an early stage of development. Among the biggest challenges are regulatory restrictions, the complexity of public procurement procedures, high transaction costs and underdeveloped mechanisms for involving smaller market participants. "Although the European PPA market has grown significantly in recent years, contracts between renewable energy producers and municipalities or energy communities remain rare," industry representatives note. "Most existing PPAs are concluded with large companies, which underlines the need to develop new models that enable more active participation of citizens, municipalities and the public sector in the energy transition."
Solar Investors Guide – Mounting on tricky terrain
With the report's publication, the OIEH aims to open a broader debate on the regulatory changes and market developments needed to advance its "Renewables for All" project. "Our work will continue in the period ahead," says Marija Hanzec, spokesperson for the OIEH. The association has announced a series of further events over the coming months focused on knowledge exchange and capacity building, beginning with a webinar in September 2026 presenting best-practice examples from across Europe.
The report on the regulatory framework, market barriers and operational guidelines for the development of the PPA market in the Republic of Croatia is available for download on the OIEH website. (su)
