Page 128 - bne IntelliNews Southeastern Europe Outlook 2025

Low-carbon energy sources supplied 57% of Croatia's electricity consumption. Hydropower was the leading contributor at 37%, followed by wind energy at 14%, biofuels at nearly 4% and solar energy at just over 1%. Fossil fuels accounted for around 19% of electricity generation, with natural gas being the predominant source at around 16%.
The LNG terminal at Krk is important for Croatia and the region. It was announced in spring 2024 that Croatia’s gas operator, Plinacro, secured €533mn from the EU Recovery and Resilience Plan to build four pipelines linking the Krk LNG terminal to Slovenia, Hungary and Southeastern Europe. Declared a strategic project at the beginning of 2025, the 216 km network aims to enhance regional energy security. It connects Croatia to Central and Eastern Europe, ensuring gas supply continuity while supporting hydrogen transport, positioning Croatia as a regional energy hub.
In terms of renewable energy capacity, Croatia made strides by adding between 750 MW to 800 MW of solar and wind power to the grid since the beginning of the year. The total additions for 2024 were expected to reach 1,200 MW, with plans to continue integrating 700 MW to 800 MW annually in the coming years.
Despite these advances, challenges persisted. As of November 2024, around 40 renewable energy projects were awaiting approval, primarily due to concerns over the power grid's capacity and reliability. This bottleneck posed risks not only for new power plants seeking grid connection but also for existing facilities. Norway-based Statkraft announced plans to divest its onshore wind, solar, and battery assets in Croatia, citing a strategic shift to concentrate investments in fewer markets.
In the oil and gas sector, private equity firm Carlyle Group agreed to acquire Energean's assets in Croatia, among other countries, for up to €945mn.
7.5 Energy & Power – Kosovo
Kosovo, with its abundant lignite coal reserves, depends on outdated power plants from the Yugoslav era that are unable to meet growing energy demands. The 2023 National Energy Strategy sets ambitious goals, including increasing renewable energy to 35% of the energy mix, reducing greenhouse gas emissions by 32%, and phasing out a lignite-fired power unit by 2031. The strategy also outlines plans to begin preparations for carbon pricing by 2026.
By 2021, Kosovo had installed 279 MW of Renewable Electricity Standard (RES) power generation capacity.
Kosovo’s gross electricity output in September fell by 2% year on year to 450.5 GWh, data from the country’s statistics institute showed. The
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