The Croatian government has announced a €20 million programme, funded by European funds, to support photovoltaic systems, heat pumps and battery storage for private households. Luka Balen, Director of the Environmental Protection and Energy Efficiency Fund (FZOEU), presented the programme at a specialist conference on the solar and storage market attended by more than 200 participants in Zagreb.
Shifting economics in the energy sector
Maja Pokrovac, Director of the Croatian Renewable Energy Association (OIEH), opened the conference with an appeal, highlighting diverging price trends for fossil fuels and renewables. “The oil price is approaching $100 per barrel, while battery storage costs are dropping below $100 per megawatt-hour,” she said. “This shows how the economics of the energy sector have changed and how sensitive fossil fuels are to geopolitical shocks.”
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Countries with significant investment in renewables and storage are better placed to manage energy supply and can offer lower electricity prices over the long term. Germany and Italy are among Europe’s leaders in battery storage deployment, while Bulgaria has increased its capacity thirtyfold within a year and is beginning construction of a battery factory intended to cover 15 percent of European demand.
Study identifies large-scale storage sites
A key conference highlight was the presentation of a study commissioned by the association and the European Bank for Reconstruction and Development (EBRD). Researchers from the University of Zagreb and the Hrvoje Požar Energy Institute conducted the study. “It is the first to systematically examine how battery storage can ease grid congestion and enable greater integration of renewables,” said Maja Pokrovac.
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The research found that, without further renewable expansion, 22 battery storage sites with a combined capacity of 1,340 MW would eliminate bottlenecks and support grid stability during critical failures. If renewables are expanded as planned, grid investments would reduce the need to around ten large battery systems with a combined capacity of about 350 MW.
Using an optimisation algorithm, the researchers identified 17 locations with a total capacity of 1,620 MW, mainly in the Split transmission area. “Battery storage and grid expansion must go hand in hand,” summarised Dražen Balić from the Hrvoje Požar Energy Institute, one of the study’s authors. “The optimal development strategy for the electricity sector must combine both approaches.” Even with the planned 400 kV transmission line from south to north, storage requirements would be halved but not eliminated.
Progress to date and new programmes
Croatia is not starting from scratch. The energy transition in the electricity sector is already under way. The FZOEU has co-financed more than 15,000 photovoltaic projects for citizens and supported 250 projects for companies, as Director Luka Balen emphasised. A recently completed call for battery systems attracted 60 applications. The newly announced €20 million programme will, for the first time, combine support for photovoltaic, heat pump and battery storage systems for private households.
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State Secretary Tanja Radić Lakoš added that an €80 million programme to support energy transition projects by public water utilities is underway through the Modernisation Fund. “We are also co-financing the country’s first virtual power plant – a battery storage system with a capacity of 10 MW and 22 MWh,” she said. “The new Social Climate Fund, endowed with €1.68 billion, is also intended to support vulnerable households through energy retrofits and expansion of renewables with storage.”
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Arthur Daemers from conference co-organiser SolarPower Europe placed Croatia’s efforts in a European context. “By the end of 2025, a total of 77 GWh of battery storage will have been installed in Europe, a 45 percent increase compared to the previous year,” he said. The association sees potential for a tenfold increase to 750 GWh by 2030 and is calling for a European action plan for battery storage, including faster permitting, transparent grid capacity maps and prioritisation of flexible projects in grid connection queues. (su)
