Untapped Potential: The Capacity of Offshore Wind Farms in Croatia is 25 GW

A new report funded by the EBRD titled Action Plan for the Utilization of Renewable Energy Sources at Sea in Croatia was presented today in Zagreb.

The report, authored by Croatian experts and coordinated by the Renewable Energy Sources of Croatia (RES Croatia) association, identifies areas in the Adriatic Sea suitable for renewable energy production, which could far exceed the current land-based renewable energy capacity in the country and reach levels comparable to the total European offshore wind capacity, according to the EBRD’s statement.

At the presentation of the report in Zagreb, domestic and international experts discussed the steps necessary to unlock this potential, including an incentivizing regulatory framework.

The study identified over 29,000 square kilometers of offshore area available for renewable energy sources, including offshore wind farms (fixed to the seabed and floating) and floating photovoltaic plants. This includes several low-impact areas in the northern part of the Adriatic Sea, where up to 25 GW of offshore wind farms could be installed.

‘Further research and innovation are necessary’

– The identified potential of up to 25 GW of offshore wind capacity in low-impact areas could transform Croatia into a major European player in the renewable energy sector over the next decade. Currently, the total installed land-based offshore wind capacity in Europe is 30 GW. Croatia should capitalize on this potential as soon as possible to enhance Europe’s energy security in the medium and long term.

I thank everyone who worked on this study for showcasing this incredible promise. Of course, it will require significant stakeholder efforts to realize this, including further regulatory reforms, community engagement, and investments. The EBRD, the largest driver and financier of renewable energy in the region, is ready to support Croatia with both technical and financial cooperation, stated Victoria Zinchuk, EBRD Director for Central Europe.

– Increasing offshore renewable energy can be leveraged for national economic growth. Numerous Croatian companies have already collaborated with the scientific and academic community in the field of equipment production, installations, and other components for renewable energy on land. In the future, the shipbuilding industry could connect with the development of renewable energy at sea as Croatian shipyards have manufacturing capacities that can support the construction and installation of offshore wind turbines.

Further research and innovation are necessary to achieve full momentum and efficiency for offshore renewable energy at lower costs and with less environmental impact. We are proud that experts from the Faculty of Mechanical Engineering and Naval Architecture at the University of Zagreb, OIKON d.o.o. – Institute for Applied Ecology, and the Island Movement participated in the preparation of this study. As RES Croatia, we always emphasize that Croatia can achieve energy self-sufficiency, and megawatts from offshore wind and photovoltaic plants can certainly contribute to that, said Maja Pokrovac, Director of Renewable Energy Sources of Croatia.

The study recommends the development of a national maritime spatial plan, starting from identified low and medium impact areas, including areas in the National Energy and Climate Plan (NECP), which is currently under revision. The report also recommends designing an auction scheme, appointing a single contact point for renewable energy developers, conducting further technical studies, and engaging in collaboration with local stakeholders.

Long-lasting permitting processes

Croatia’s current ten-year plan for upgrading the electricity transmission system should also enable potential significant new capacities for renewable energy at sea, it states, as well as the plans of neighboring countries to develop their own renewable energy sources at sea.

The report notes the current work of the Hydrocarbon Agency in assessing its existing and outdated gas fields at sea for potential conversion to renewable energy and suggests exploring several shipyards, built before independence and well-connected to the necessary infrastructure, for conversion into hubs for offshore renewable energy services. It also identifies additional medium-impact areas with significant potential of up to 32 GW.

Croatia, which relies on imports for about half of its energy needs, aims to increase domestic electricity production from renewable sources. According to 2021 data, the total installed capacity of wind and solar energy in Croatia is 1.2 GW; the total renewable capacity rises to 4.9 GW when including hydropower and other sources. While energy prices currently allow for market access – meaning that renewable electricity is competitive at commercial prices and state subsidies are not needed at current price levels – investments are hindered by long-lasting permitting processes at local and national levels.

Currently, there is little installed solar photovoltaic (PV) capacity in the country, but there is a significant pipeline over the next decade. A draft law that would allow for combined land use for solar energy and agricultural production could open up additional solar opportunities. Another report funded by the EBRD on the potential of agro-solar energy in Croatia is expected to be published in the coming months, as a complement to the study released today.

To date, the EBRD has invested over 4.4 billion euros in Croatia, of which nearly 300 million euros was invested in 2022.