What is happening in the renewable energy market? Why are foreigners leaving Croatia? Norwegian Statkraft surprised everyone last month with the announcement of its withdrawal from Croatia. After taking over projects from the French investor NEOEN this year, a change in Statkraft’s leadership led to the beginning of portfolio consolidation, focusing on investments in a smaller number of countries where it can increase its business volume. Then, in October, the announcement followed regarding the withdrawal from Croatia and the start of the search for a new investor to take over the projects.
These are not isolated examples. In addition to NEOEN and Statkraft, the British Cindrigo also abandoned its investment in Croatia this year, prioritizing “strategically more important, less risky, and more valuable development opportunities, namely German geothermal licenses” and withdrew from a £5 million investment in geothermal energy sources in the Virovitica-Podravina County. It is speculated that other foreign players may also leave Croatia.
As is often the case, administrative barriers in this market are removed slowly and with difficulty, and when this slow pace coincides with the recent trend of large companies turning to markets where they can reach revenue faster, such results occur. Fortunately, RES projects are still sufficiently profitable, so they will certainly find new owners who will continue to develop them, and ENNA group and JANAF could notice an opportunity in Statkraft’s withdrawal.
