Croatia is stepping up its efforts to support the energy transition among public utilities. Through the Environmental Protection and Energy Efficiency Fund (FZOEU), the country is channelling EU resources to help regional water utilities and municipal waste operators invest in solar power. Under the MF-2025-1-1 programme, €70 million is set aside for water utilities installing photovoltaic systems, with a further €10 million available to waste management companies.
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Rising energy costs
Many municipal utilities now find themselves under mounting pressure as Croatia phases out electricity subsidies. With support declining, energy costs are making up an ever-larger share of operating expenses. Đuro Zmijarevic, Head of the Water Use Department at Hrvatske vode, Croatia’s water management authority, highlighted the challenge in a panel at the Green Energy Fair in Zagreb. “At public water utilities, electricity costs currently account for between 15 and 40 percent of operating expenses,” he noted. “But that is only because electricity prices remain regulated. If utilities had to pay market rates, the share would jump to 40 to 80 percent of total costs,” Zmijarevic explained. “Without in-house photovoltaic generation, the system would not be sustainable in the long run,” he warned.
Eligible for up to €3 million
Aleksandar Halavanja, Head of Energy Management at FZOEU, set out the terms of the programme. Individual projects are eligible for grants from €10,000 to €3 million, while a single applicant can receive up to €5.5 million in total for multiple projects. “Applications can be submitted until 30 September 2026 or until the funds are exhausted,” Halavanja explained.
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The programme guidelines specify that both integrated and non-integrated grid-connected photovoltaic systems are eligible for support, as are battery storage systems for water utilities. Funding can also cover project monitoring, site supervision and management, as well as information and marketing activities. By early November last year, only €6 million of the €80 million pot had been allocated, Halavanja reported. “So there is still room,” he emphasised, urging more applicants to take advantage of the scheme.
Lowering barriers
To simplify the application process, the authority has decided that not all supporting documents need to be submitted at the outset. Incomplete applications will not be rejected, Halavanja said. “If a document is missing, we allow it to be submitted at a later stage,” the Fund representative confirmed.
Croatia faces an uphill climb towards its energy future
The programme is part of the Repower EU initiative and was launched in response to the energy crisis. Its goal is to raise the share of renewables in Croatia’s final energy consumption by 2030 and to cut greenhouse gas emissions. Project applications can be submitted by registered mail to the FZOEU in Zagreb. (SU)
Further information on the programme, funding conditions and required documents can be found on the FZOEU website.
