FRIEDRICH-EBERT-STIFTUNG – INCLUSIVE ENERGY TRANSITION IN SOUTHEAST EUROPE share of 28.5 per cent, 161 the 2030 target is not very ambitious. It will anyway need to be strengthened to align with the Fit for 55 package. None of Croatia’s strategic documents defined a coal phaseout date, despite the fact that Croatia has only one coal power plant and that it uses imported coal. Nevertheless, Prime Minister Andrej Plenkovi ć announced at the November 2021 UN Climate Change Conference(COP 26) that the plant would close by 2033 at the latest 162 – a deadline which looks certain to be brought forward considering coal’s increasingly poor economics. Energy poverty is a significant problem that will hold back any transition if not addressed. There is still no clear definition of energy poverty, nor indicators to clearly measure it. However, in 2018, 7.7 per cent of the Croatian population was unable to keep their home adequately warm – slightly above the EU average of 7.3 per cent – while 17.5 per cent of the population was unable to pay utility bills on time due to financial difficulties, far above the EU’s 6.6 per cent average. 164 A draft of a long-awaited Programme for the Elimination of Energy Poverty was recently reported to have been completed, 165 but at the time of writing it has not yet been adopted. Considering coal accounted for only 9 per cent of Croatia’s domestic electricity generation in 2020 while gas accounted for more than 25 per cent, the latter will be more of a challenge to phase out, and Croatia’s strategies show it is planning to delay most action on this to beyond 2040. INCLUSIVE ENERGY TRANSITION JUST TRANSITION In 2020 the city of Zagreb and the area of Petrinja, Glina and Sisak were hit by earthquakes which necessitated considerable reconstruction efforts. These are progressing slowly and there is a considerable need to speed up action for the affected people. Nevertheless, attention needs to be given to‘building back better’ in order to ensure the energy efficiency of the reconstructed buildings. PROSUMERS As Croatia’s only coal mines closed decades ago, only modest efforts to ensure a just transition for the community affected by the closure of the Plomin coal plant are needed, compared to other countries in the region. However Croatia also produces oil and gas and more efforts will need to be put in there. So far it seems that little thought has been put into ensuring a bottom-up and participatory process for deciding on the future of the affected regions. HOUSEHOLDS AS ENERGY CONSUMERS AND TAXPAYERS Croatia has suffered from the regional trend of building poorly-planned small hydropower plants incentivised by energy consumers’ money, but to a lesser extent than some of its neighbours. However, public acceptance of its renewables incentives schemes – and thus energy transition as a whole – is threatened by environmental and corruption scandals such as those around the Krš-Pa đ ene wind farm. 163 As an EU Member State, Croatia has had to switch to an auctions-based incentives system for larger installations, which should help keep costs down for consumers once the current feed-in tariff contracts come to an end, but the potential for a backlash still exists if renewable energy plants continue to be subject to such scandals. 161 European Commission, Europe 2020 targets: statistics and indicators for Croatia, accessed 19 November 2021. 162 Government of the Republic of Croatia,‘Croatia will reduce CO 2 emissions by 45% by 2030, our coal phase-out year is 2033’, 2 November 2021. 163 Igor Todorovi ć ,‘High-profile arrests in Croatia highlight claims of corruption in renewables in region’, Balkan Green Energy News, 5 June, 2020. By the end of 2020, 851 households were participating in net metering, compared to only 146 in 2019, showing the importance of legislative changes. Six hundred and forty-four commercial producers were also producing for self-consumption, compared to 427 in 2019. 166 Some collective initiatives are underway – for example, the town of Križevci hosts a first small communal solar power plant of 30 kWh, financed by a group of citizens and assisted by the Green Energy Cooperative(ZEZ). 167 The town’s Development Centre uses the electricity produced while the state electricity utility buys off the surplus. 168 Nevertheless, Croatia is still very early in its prosumer development compared to its massive potential. PUBLIC PARTICIPATION IN DECISION-MAKING ON ENERGY POLICY AND INFRASTRUCTURE Croatia made significant improvements in legally-stipulated public participation in the years leading up to its EU membership but still suffers from a number deficiencies in common with its regional neighbours, for example the persistence of decades-old projects which have not been properly reviewed for their suitability for today’s circum164 European Commission, Energy Poverty Advisory Hub, Indicators, accessed 8 December 2021. 165 Government of the Republic of Croatia,‘Plenkovi ć u Saboru: U ova burna vremena Vlada predano i angažirano radi u interesu hrvatskih gra đ ana’, 27 October 2021. 166 Minea Skok, Incentives and challenges in promoting self-consumption Case of Croatia, Hrvoje Požar Energy Institute, 2 June 2021. 167 Zelena Energetska Zadruga, accessed 8 December 2021. 168 Balkan Green Energy News,‘Democratization of energy on rise in Croatia and Bosnia and Herzegovina’, 31 August 2021. 32
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IETO : inclusive energy transition in Southeast Europe as an opportunity
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