How to reconcile the balance between renewable and conventional energy sources and the issue of incentives for investments in the energy sector have emerged as dominant themes in the panel discussion on greenfield investments in the energy sector, the first discussion today at the two-day Lider conference ‘Greenfield investments – how dreams become reality’ which has been ongoing in Medulin since this morning.
>>> The two-day conference on greenfield investments has begun
– We expect the energy strategy to clearly define Croatia’s direction towards renewable sources, but without strong cuts to other sources in the transition to 2050 – said Petar Sprčić, a member of the HEP Management Board, adding that he expects a new system of incentive premiums from the state that will give a new impetus to investments because, as he concluded, without incentives there will be no investments.
In response to a question from moderator Darko Tipurić, a professor at the Zagreb Faculty of Economics, regarding why there are not more foreign investments in the energy sector in Croatia, Davor Štern, director of Trade Consulting, consultant, and advocate of conventional energy sources, stated that Croatia is not an attractive country for investors primarily due to a poor investment climate and high labor costs, but also, as he asserted, due to the fact that no one provides incentives to investors for fear of being accused of favoritism.
>>>Barbarić: Capital investments in energy can directly contribute to GDP growth
Professor Slavko Krajcar from the Zagreb Faculty of Electrical Engineering and Computing presented data showing that 1.6 billion euros have been invested in renewable energy sources over the past decade, concluding that a functional system has been created thanks to state incentives and that we must think about new models to continue developing that system.
Why has there never been an analysis of the costs and benefits of incentives for investments in renewable sources, asked Marko Jurčić, economic advisor to the President of Croatia, concluding that we do not have a strategy and are rushing into things instead of determining what we want and whether these funds could have been better utilized.
>>> Tipurić: It is necessary to change a number of segments to raise Croatia’s level of competitiveness
Professor Krajcar noted that since 2007, 300 million euros have been invested in the difference in the tariff price of electricity from renewable sources since 2007, while Davor Štern proposed that Croatia, in addressing the issues between INA and MOL, incorporate the possibility of participating in the construction and management of a nuclear power plant in Hungary near the border with Croatia.
In response to the question of how to encourage an export-oriented economy based on investments in the energy sector, Marko Jurčić stated that without removing administrative barriers, changing the state’s attitude towards investors, and providing incentives to investors, there will be no investments.
>>> Ćorić: Reducing imports and increasing exports – new energy strategy by the end of 2018.
The panel also mentioned the LNG terminal on Krk, and Štern questioned who decided it should be there, asserting that there are other alternatives in the northern Adriatic, for example near Pula, from where there is a pipeline to Italy.
In the discussion about investments in the energy sector, which intrigued the gathered participants to engage with questions and comments, Professor Krajcar stated that without the local community, it is impossible to think about the future of energy, concluding that although Croatia has reached the set goal of 27 percent share of renewable sources, we must not be satisfied and need to continue further.
