Renewable Energy System Stalled: About 40 Projects on Hold

The Croatian Chamber of Commerce (HGK) and its Association of Renewable Energy Sources estimate that about 40 renewable energy projects (OIE) are currently on hold, it was highlighted today at a panel during the climate conference on financing and integrating renewable energy sources.

The panel attempted to provide answers as to why renewable energy projects are stalled, which part of the system is not functioning, and what the challenges and solutions are for integrating these projects into existing electricity networks, HGK announced. Marija Šćulac, Director of the Sector for Industry and Sustainable Development at HGK, stated that even when we have laws, some implementing acts are missing. An additional issue, she said, is that regulations are not harmonized between different ministries and institutions, so while some approve, others impose additional requirements that slow down the process.

– Even when we have laws, some implementing acts are missing. An additional issue is that regulations are not harmonized between different ministries and institutions. While some approve, others impose additional requirements that slow down the process. When we talk about the challenges of financing projects, it is often thought that there is a lack of funding sources or unfavorable investment conditions. However, in renewable energy in Croatia, investors face a specific problem – uncertainty regarding basic costs, such as the connection fee to the grid, which has not been determined since 2022. A specific and additional problem that makes it difficult for investors to plan, secure financing, and realize projects is the uncertainty that slows down the development of the entire sector. All of this leads to the system being stalled – said Šćulac, who has been issuing a Position paper for the second consecutive year warning that an unregulated and uncertain framework undermines the development of the renewable energy sector.

The panel also discussed the state of the electricity network, which is not only related to renewable energy sources but is also a matter of supply security, economic development, and the sustainability of the entire energy sector, HGK stated. Šćulac noted that the biggest challenge remains the network, specifically its capacity, age, and financing for modernization. Currently, about 4,000 MW of OIE is connected, while contracted capacities exceed 3,000 MW, which means the network is already overloaded.

More than 50 percent of the transmission infrastructure has exceeded its lifespan, and the National Energy and Climate Plan (NECP) foresees the integration of an additional 4,800 MW by 2033. This requires urgent investments, but according to the NECP, the minimum required 2.3 billion euros by 2030 is far from secured. Although HOPS and HEP ODS are increasing their investments, they are still insufficient compared to actual needs, HGK stated.

– Yes, there are plans for additional capacities and network stability, but realization comes too late. We will find ourselves in a situation where even realized projects will not be able to produce energy at full capacity – Šćulac emphasized.

It is necessary to open space for more flexible integration through energy storage, decentralized production, and network adaptation.

– Changes are necessary when we talk about relations with investors and our own electricity network. Further growth of the sector and reducing dependence on energy imports are not possible if we do not change this – Šćulac concluded.