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Plenković: Without secure energy supply, there is no light or heating

Geothermal energy definitely has the potential to become a new trend in renewable energy sources, and Croatia could emerge as a leader in the region in this energy segment, primarily due to the high geothermal gradient of the Pannonian basin. However, some issues need to be resolved first, such as the sources of financing for the exploratory phase of potential sources and how the production of electricity will be incentivized through its price. These are the main messages from yesterday’s Geothermal Investment Forum Croatia organized by the Croatian Chamber of Economy and Alpheus.

– The International Energy Agency announces that in the next 15 years, the production of coal, oil, and gas will peak, which means that the world is at a turning point and we must think long-term and strategically. Because if there will be less of these fossil fuels in a world that is demographically growing and consuming more energy, it inevitably means that energy will be more expensive tomorrow, and we must already invest in alternative energy sources. Without secure energy supply, there is no political or economic security, there is no military, and there is no light or heating. Therefore, it is important for Croatia to develop its energy infrastructure – stated the Prime Minister of the Republic of Croatia, Andrej Plenković, at the conference.

In this context, the Prime Minister highlighted geothermal energy as a renewable, reliable, and cost-effective source that could be a solution to upcoming challenges. The Prime Minister reminded that the EU imported 56 percent of its energy needs before the Russian aggression on Ukraine, of which 70 percent was fossil energy. He added that the EU imports 96 percent of its oil needs, 84 percent of its gas needs, and 57 percent of its coal needs, while Croatia imports 80 percent of oil, 75 percent of gas, and 100 percent of coal. Thus, Croatia’s energy needs are met similarly to Europe, making it similarly vulnerable.

Among domestic projects that help diversify energy supply in Europe and Croatia, he highlighted the LNG terminal on Krk, which will increase its capacity to 6.1 billion cubic meters of gas per year by the middle of next year, and Plinacro’s project of four gas pipelines, into which 533 million euros should be invested by the end of 2026, exceeding the funds invested in the Pelješac Bridge.

The Minister of Economy, Ante Šušnjar, emphasized that efforts in the development of geothermal energy have increased, as evidenced by the fact that geothermal energy is now confirmed in 12 fields, and 25-year exploitation contracts have already been signed for some of them.

– It is necessary to further accelerate research, attract private investments, and simplify the regulatory framework. Geothermal energy is a sustainable solution for the energy sector and an opportunity for economic growth, technical advancement, and strengthening energy security – said Šušnjar.

Geothermal research has been included in the National Recovery and Resilience Plan (NPOO), from which the Hydrocarbon Agency has been allocated a non-repayable 50 million euros for the exploration of geothermal sources near six Croatian cities – Vinkovci, Vukovar, Osijek, Zaprešić, and Velika Gorica. Drilling began last Friday near Velika Gorica.

– In the first phase, there was a surge of business developers and local communities, who all did not have enough capacity; only in the last tender did we manage to bring in players who will take this to completion – said the CEO of the Hydrocarbon Agency, Marijan Krpan.

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