COMMISSION STAFF WORKING DOCUMENT Country Factsheet Croatia Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union
Date: 2015-11-18
Institutions: European Commission, Secretariat-General
Subjects: Croatia, competitiveness, economic and social cohesion, electrical energy, energy policy, gas, innovation, reduction of gas emissions, regional cooperation, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 18.11.2015  SWD(2015) 218 final   COMMISSION STAFF WORKING DOCUMENT Country Factsheet Croatia Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  State of the Energy Union {COM(2015) 572} {SWD(2015) 208 à 209} {SWD(2015) 217} {SWD(2015) 219 à 243}  
 
 
Towards an Energy Union  
           Croatia 

UPDATED DRAFT 

Macroeconomic relevance of energy 

IMPORTANCE OF THE ENERGY SECTOR 

In Croatia, according to national statistics, the weight of the energy sector in total value added was 
slightly above the EU average in 2012 at 2.1% compared to 2%. At the same time the share of total 
employment that the energy sector accounts for is double that of the EU27 average, at 1.2% against 
0.6.  

According to EurObserv'ER, in 2013, the share 
of  direct  and 
indirect  renewable  energy 
related  employment  in  total  employment  of 
the  economy  in  Croatia  was  at  about  0.22%, 
below the EU average of 0.53%. 

Source:  European  Commission,  based  on  EurObserv'ER  and 
EUROSTAT 

TRADE BALANCE OF ENERGY PRODUCTS 

Croatia's energy trade deficit is significantly larger than that of the EU28 average and it has slightly increased 
between 2006 and 2014. The largest component remains the oil trade deficit, however the gas trade deficit 
has also increased over the period. In spite of the growing energy trade deficit, the country's current account 
has  turned  from  a  deficit  of  almost  7%  to  a  small  surplus  of  about  1%  in  2014  following  a  sharp  import 
contraction. 

Source: EUROSTAT 
Note: Current account balance for EU28 from European Commission (AMECO) 

-8-7-6-5-4-3-2-1012HREU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2006 -8-7-6-5-4-3-2-1012HREU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2014  
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Croatia 

1. Energy Security, solidarity and trust 

ENERGY MIX 

The energy mix of Croatia is slightly different than the EU28 average, with a lower share of solid fuels and a 
higher share of petroleum, gases and renewables. Compared to 1995, the share of petroleum and products 
decreased  (from  52%  to  43%  of  the  gross  inland  energy  consumption),  while  the  share  of  solid  fuels  and 
renewable energy increased, by 6 and 3 percentage points respectively. The share of gases increased slightly, 
from 30 to 31% of the energy mix. 

Gross inland energy consumption in 2013  

Source: European Commission, based on EUROSTAT  

IMPORT DEPENDENCY 

Croatia has an import dependency  similar with the EU28 average for fossil fuels. The import dependency is 
much lower for gas, although it increased over the last 8 years. Croatia has a long tradition of gas production 
by  which  it  covers  slightly  above  60%  of  its  annual  domestic  demand.  It  has  to  be  noted  that  domestic 
consumption  varies  significantly  depending  on  the  period  of  the  year  and  that,  in  winter,  national 
consumption  is  significantly  higher  than  domestic  production.  This  variability  has  to  be  taken  into 
consideration when assessing Croatia's security of supply. The overall country supplier concentration index is 
relatively low. However, the energy trade deficit, expressed in percentage of GDP, is high, above the one of 
the EU28.  

2 

 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Croatia 

Source: European Commission, based on EUROSTAT  

2. A fully-integrated internal energy market 

INTERCONNECTIONS 

The interconnection capacity for electricity was 69% in 2014 for 
Croatia,  which  is  above  the  2020  and  2030  targets  at  the  EU 
level.  In  electricity,  there  are  several  Projects  of  Common 
Interest  (PCIs)  planned  in  Croatia,  including  two  electricity 
clusters,  a  high  voltage  transmission  line  between  Croatia  and 
Bosnia  and  Herzegovina  and  a  high  voltage  transmission  line 
between  Croatia,  Hungary  and 
Slovenia.  Considerable 
investment is expected. 

Source: European Commission based on ENTSO-
E scenario outlook and adequacy forecast 2014 
Note: Reference to 2030 target is based on 
October 2014 European Council conclusions 
stating that "the Commission will also report 
regularly to the European Council with the 
objective of arriving at a 15% target by 
2030" 

In gas, 3 projects out of 33 key security of supply infrastructure 
projects  listed  in  the  European  Energy  Security  Strategy  (EESS) 
are relevant for Croatia: the LNG terminal in Krk and connecting 
pipelines  (which  would  open  across  European  North-South 
corridor),  the  reverse  flow  enabling  gas  flows  from  Croatia  to 
Hungary  and  IAP,  a  new  interconnector  part  of  the  Balkan  Gas 
Ring and connected to the Trans-Adriatic Pipeline (TAP). 

ELECTRICITY AND GAS MARKETS 

Market concentration index for power generation 
(Herfindahl index – 10000 means monopoly) 

Competition  in  Croatia’s  energy  market  is  still 
very  limited.  There  is  currently  no  commodity 
exchange  or  gas  hub.  Wholesale  gas  trading  is 
based on bilateral contracts. 
Croatia  should  step  up  its  efforts  to  deregulate 
wholesale  prices  and  complete  the  unbundling 
process. It should also take the necessary steps 
for  the  removal  of  barriers  to  the  export  and 
import of gas. 
Price  regulation  on  the  gas  wholesale  market 

3 

Top non-EU gas suppliers in 2013 (% in total imports)CroatiaEuropean Union country[%]country[%]Kazakhstan13.9Russia39.0Norway29.5Algeria9.7Qatar6.758%52%79%77%24%32%52%53%82%87%57%65%200520132005201320052013All fuelsPetroleum andproductsNatural gasHREU28Import dependency 2013 
 
 
 
 
 
 
 
and  the  retail  markets  for  households  prevents 
market entry and competition. 
Competition in the retail market for households 
is  emerging.  A  new  entrant  achieved  a  market 
share  of  around  5%  of  household  customers  at 
the end of 2014. 
Both  electricity  and  gas  prices  for  households 
are below the EU average.   

Towards an Energy Union - Croatia 

Sources: European Commission based on ESTAT, CEER and Platts 
Power Vision 

Sources:ESTAT and European Commission Calculations 

4 

 
 
 
 
 
 
Towards an Energy Union - Croatia 

CONTRIBUTION OF ENERGY TO CONSUMER PRICE EVOLUTION 

The inflation rate of Croatia has been above the average of the EU28 in the years prior to the crisis 
while  the  contribution  of  the  energy  component  has  been  relatively  small.  After  the  crisis  the 
contribution  of  the  energy  component  remained  slightly  positive,  while  in  the  EU28  it  became 
negative in 2014 due to the fall in oil prices.   

Source:DG ECFIN based on Eurostat 

VULNERABLE CONSUMERS 

living 

Based  on  a  EUROSTAT  survey  on  income 
and 
proxy 
conditions, 
indicators  are  used  to  assess  fuel  poverty. 
They  indicate  a  relevant  issue  for  Croatia. 
In  particular  there  is  a  very  high  share  of 
households with arrears on utility bills.  

three 

 Source: European Commission, based on on EUROSTAT SILC survey 

3. Energy Efficiency and moderation of energy demand 

ENERGY EFFICIENCY TARGET 2020  
(11.5 Mtoe primary energy and 7 Mtoe final energy) 

in 

Croatia’s  2020  energy  efficiency 
target  is  11.5  Mtoe  expressed  in 
primary  energy  consumption  (7.0 
final  energy 
Mtoe  expressed 
consumption). This target was set at 
a  level  which  allows  primary  energy 
consumption to grow substantially in 
the  coming  years.  Even 
if  HR’s 
current primary energy consumption 
(7.3 Mtoe in 2012) is below its 2020 
target,  additional  efforts  regarding 
energy efficiency are needed to keep 
the  primary  energy  consumption  at 

 Source: European Commission, based on EUROSTAT and on national energy efficiency 

targets as declared by the MS under the Energy Efficiency Directive 

5 

-2024620052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsCroatia : Price evolution & the contribution of energy prices-2024620052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsEU28 : Price evolution & the contribution of energy prices 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Croatia 

Primary energy intensity of the economy   

Final energy intensity in industry 

this  level  or  to  minimise  its  increase 
if the GDP increases again during the 
next six year period.  

Source: European Commission based on  EUROSTAT and European 

Commission/AMECO 

Source:  European  Commission  based  on    EUROSTAT  and 
European Commission/AMECO 

Specific energy consumption by households is below EU average and since 2005 it decreased faster than the 
EU  average.  The  specific  energy  intensity  of  passengers  cars  remained  stable  between  2005  and  2010.  The 
specific  energy  intensity  for  freight transport  increased  consistently between  2000-2010  (by 21%),  i.e.  from 
the  same  unit  of  energy  fewer  tonnes  of  good  are  transported  and/or  on  shorter  distances  (or  the  filling 
factor of goods in freight vehicles are lower). 

Final  energy  consumption  per  m2  in  residential  sector, 
climate corrected 

Specific energy intensity for passenger cars and freight 
transport1  

Source: European Commission based on  Odyssee database 

Source:  PRIMES  model  background  data  and  estimations  based  on  EU 
Commission and EU MS inputs   

EU  legislation  sets  mandatory  CO2  emission  reduction  targets  for  new  cars  and  vans.  By  2021,  the  fleet 
average to be achieved by all new cars is 95 grams of CO2 per kilometre. For new vans, the fleet average is set 
at 147 g/km by 2020. 

Source: European Environmental Agency. Values refer to 2014 and are provisional. 

1  

Statistics  on  energy  demand  for  passengers  and  freight  transport  are  not  available  and  model  estimates  have  been 
used instead. These issues should be borne in mind when comparing energy intensity in freight or passenger transport 
between Member States, which should be regarded as merely indicative. 

6 

 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Croatia 

Regarding transport performance, in EU-28 the inland freight modal shares are 71% by road, 17% by rail, 7% 
by inland waterways and 5% by pipelines. The respective inland passenger modal shares are 82% by private 
car, 9% by buses and coaches, 7% by railways and 2% by tram and metro.  

Modal shares Croatia 

Source: Eurostat and EU transport in figures 2015. Data refers to 2013. Modal shares based on tonne-kilometres for freight sector and passenger-
kilometres for passenger sector, freight data based on activity within country territory. Estimates are made when data is missing. 

4. Decarbonisation of the economy 

NON-ETS GHG EMISSION REDUCTION TARGET 2020  
(+11% by 2020 as compared to 2005 compared to the non-ETS sector) 

Croatia  has  decreased  its  emissions  by 
14%  between  2005  and  2014  (based  on 
2014 approximated data). According to its 
2015  projections,  Croatia  is  expected  to 
reach  its  2020  target  with  a  20%  margin 
as compared to 2005.  

Non-ETS 
Emissions (vs. 
2005) 

Projections 
with existing 
measures 2020 

Proxy 2014 

Projections/proxy 

target 

-9% 

+11% 

-14% 

+5% 

Source: European Commission  based on EEA. Based on preliminary inventory data. 

ESD (Effort Sharing Decision) emissions are the emissions from sectors not covered by the 

EU ETS. 

7 

 
 
 
 
 
 
 
 
 
 
      
 
 
Towards an Energy Union - Croatia 

RENEWABLE ENERGY SHARE TARGET 2020 (20%) 

With  a  renewable  energy  share  of  18%  in 
2013,  Croatia  is  on  track  to  reach  its  20% 
target in 2020. 

Source: European Commission based on  EUROSTAT 

GREENHOUSE GAS EMISSION INDICATORS 

Croatia has a high carbon intensity of the economy, about 70% higher than the EU average. 

Largest Sectors of GHG 
Emissions in 2012 (*) 

Energy/power industry 

Transport 

Industry 

Agriculture (incl. forestry & 
fishery) 

Residential & Commercial 

Waste & others 

Croatia 

EU 
Average 

28% 

22% 

22% 

15% 

9% 

4% 

33% 

20% 

19% 

12% 

13% 

3% 

(*)Sectoral breakdown for 2013 data not available 

GHG Emissions 

Croatia 

EU 

EU ETS auctioning  
revenues in 2014 (EUR 
millions) 

Share of ETS emissions 
in 2013 

GHG emissions/capita 
in 2013 
(tCO2equivalent) 
Carbon intensity of the 
economy in 2013 
(tCO2equivalent/(EUR 
millions) 

0 

3205 

34% 

42% 

6.2 

8.5 

606 

328 

Source: European Commission  based on EEA 

ENERGY & TRANSPORT TAXATION 

In 2005, taxation of energy and transport as a share of GDP in Croatia were considerably higher than 
the EU28 average. The decomposition shows that while heat and electricity taxation are extremely 
low, the transport fuel taxation is much higher than the EU average. This difference was somewhat 
reduced in 2012, as transport  fuel taxation as a % of GDP in Croatia were reduced by more than 20% 
compared to the 2005 levels. Consequently the overall energy and transport taxation as a share of 
GDP became more aligned with the EU average.   

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Towards an Energy Union - Croatia 

Source: Eurostat 

5. Research, innovation and competitiveness 

RESEARCH AND INNOVATION 

Croatia has a very low public support share allocated to research and innovation in the field of energy 
and environment. In terms of intensity of low-carbon technologies patents, Croatia is much behind the 
EU average and main worldwide partners. 

Source: European Commission based on  EUROSTAT   

COMPETITIVENESS 

No  data  is  available  for  Croatia  as  regards  the  real 
unit energy costs2.  
Electricity  prices  paid  by  industrial  customers  are 
below  EU  average  and  are  particularly  low  for  the 
largest energy consumers. As regards gas, prices are 
above  EU  average,  as  well  as  above  average  OECD 
prices. 

Real unit energy costs (% of value added) 

Source: European Commission 

2 This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added. 

9 

9.58.213.28.813.78.00246810121416HREU27US200020092011 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Croatia 

Source: European Commission based on EUROSTAT and IEA 

6. Post-2020 Energy and Climate policy Strategy  

COMPREHENSIVE MEDIUM TO LONG-TERM STRATEGY (post-2020) 
FOR CLIMATE AND ENERGY  

  Croatia has not yet established a medium to long-term climate and energy strategy for the 
post-2020 period. The Energy Strategy, adopted by Croatia in 2009, includes both energy and 
climate-related objectives and covers the period up to 2020.  

 

  A comprehensive Low Carbon Development Strategy for the period until 2030, with a view to 
2050, is planned to be adopted in 2015. The strategy is expected to set targets and measures 
necessary to achieve medium-to-long-term energy and climate-related objectives. 
In 2014 the Croatian Parliament has adopted a new legislative package on energy efficiency 
including  the  Energy  Efficiency  Act.  The  Ministry  of  Construction  and  Physical  Planning 
drafted a proposal of the "Long-Term Strategy for Mobilising Investment in the Renovation of 
the  National  Building  Stock  of  the  Republic  of  Croatia"  to  encourage  investment  in  the 
refurbishment of the national building stock by 2050. 

NATIONAL TARGETS, especially for 2030 

Objective, 2030-2050 

Targets 

Comments 

GHG reduction  
Renewable energy  
Energy Efficiency / savings 

No 
No 
No 

7. Regional cooperation  

Croatia  is  a  member  of  the  Regional  Groups  North-South  electricity  and  gas  Interconnections  in 
Central Eastern and South Eastern Europa. 

Croatia  is  a  member  of  the  High  Level  Group  on  Central  East  South  Europe  Connectivity  (CESEC) 
together with Austria, Bulgaria, Greece,  Hungary, Italy, Romania, Slovak Republic and Slovenia. The 
objective  of  the  High  Level  Group  is  to  establish  a  regional  priority  infrastructure  roadmap  and 
advance  its  implementation in  order  to  develop  missing infrastructure  and  improve security of  gas 
supplies. 

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Towards an Energy Union - Croatia 

8. Cohesion policy contribution  

The EU Cohesion policy provides for important investment possibilities to  implement energy policy 
objectives in Croatia which will be complemented by national public and private co-financing, aiming 
at  optimal  leverage.  It  also  ensures  integrated  territorial  solutions  to  challenges  by  supporting 
capacity  building  and  territorial  cooperation,  including  the  Danube  Region  and  Adriatic  and  Ionian 
Region macro-regional strategies in which Croatia takes part. 

Internal Energy Market: Over 2014-2020, EU Cohesion Policy will invest some EUR 20 million in smart 
electricity distribution grids in Croatia. These investments are expected to contribute to around 5 800 
additional users connected to smart grids. 

Energy  efficiency:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  402  million  in  energy 
efficiency  improvements  in  public  and  residential  buildings  and  in  enterprises,  as  well  as  in  high-
efficiency  cogeneration  and  district  heating  in  Croatia.  A  further  estimated  EUR  810  million  will  be 
invested in supporting the move towards an energy-efficient, decarbonised transport sector. These 
investments  are  expected  to  contribute  to  around  10  000  households  with  improved  energy 
consumption classification and a decrease of around 55 100 000 kWh per year of decreased primary 
energy  consumption  of  public  buildings,  as  well  as  to  around  80  km  of  reconstructed  or  upgraded 
railway lines and 250 km of improved inland waterways. 

Decarbonisation: Over 2014-2020, EU Cohesion Policy will invest some EUR 95 million in renewable 
energy in Croatia.  

Research,  Innovation  and  Competitiveness:  Over  2014-2020,  EU  Cohesion  Policy  will  invest 
significantly in R&I and in SME competitiveness in Croatia. This will be based on the national strategy 
for  smart  specialisation.  For  Croatia,  the  draft  strategy  includes  a  focus  on  energy  and  sustainable 
environment as  well as transport and  mobility among the selected priorities. At this stage, at least 
EUR 40 million is foreseen for investments in R&I and adoption of low-carbon technologies in Croatia, 
but this might increase further in line with the evolving content of the smart specialisation strategy. 

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