Factsheet for measure
HR-2023-21/3174
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Updated
– measures in Croatia
Grant for manufacturing and heating companies to invest in renewable electricity sources
Proizvodnja električne energije iz obnovljivih izvora u prerađivačkoj industriji i toplinarstvu
Background information
The government deems that renewable energy sources are the future of the energy transition, and such initiatives are opportunities not to be missed, given that they provide business entities with a quick and easy path to significant long-term savings, sustainability and improved competitiveness on the market.
This measure represents another step in achieving the climate neutrality goals of the European Union and in reducing dependence on fossil fuels. Croatian companies that decide to invest in renewable energy sources will not only benefit in terms of the aforementioned reduction in energy costs, but will also contribute to achieving the goals of climate neutrality and preserving the environment. The Ministry of Economic and Sustainable Development announced a grant for micro, small, medium, and large entrepreneurs to produce their own electricity from renewable resources.
It is the first announcement from the Modernisation Fund, which was established as part of the EU greenhouse gas emissions trading system. Companies in the fields of manufacturing and heating have the opportunity to receive grants from the €1 billion fund for their production plants to generate electricity from renewable sources.
Content of measure
The grant amount awarded per project ranges from €100,000 to €2 million. The initiative encourages Croatian companies to produce energy for their own needs in order to improve their own production, reduce the costs of energy, and reduce dependence on electricity from the market. The expected effects of this measure include:
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reduction of greenhouse gas emissions by 60,000 tonnes of CO2 per year.
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installed electric power from renewable sources 80 MW.
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energy savings of 140,000 MWh per year.
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installed energy storage capacity of 20 MWh.
The passing of this measure inspired domestic and foreign companies to design and construct of solar power plants in Croatia. This provided a unique opportunity for companies to reduce electricity costs and become independent of traditional energy sources. Given the availability of a significant amount of grants, the Ministry believes that the grant incentivises companies to implement electricity projects, invest in sustainability, and reduce their costs on a long-term level.
All interested business entities from the eligible sector have until 19 June 2023 to create a project, prepare documentation and submit a proposal. All necessary documentation and other information can be found on the website of the Ministry of Economy and Sustainable Development.
Updates
The following updates to this measure have been made after it came into effect.
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17 November 2024
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The Ministry of Environmental Protection and the Green Transition and the Environmental Protection and Energy Efficiency Fund announced the public tender for the allocation of funds "Production of electricity from renewable sources in the processing industry and heating". The goal of the Call is to support investments for the production of electricity using renewable energy sources (hereinafter: RES) to fulfill the following obligations of the Republic of Croatia until 2030 i) reduction of greenhouse gas emissions (compared to 2005); ii) reduction in the consumption of supplied energy to the reference supplied energy, i.e. to the consumption of supplied energy before the implementation of the measures; and iii) increasing the share of RES in gross direct energy consumption. Available resources in the call are of €33.8 million. Within the stated available amount of the Modernization Fund, the funds will be distributed according to investments in i) photovoltaic power plants - allocation of €18.8 million; ii) biomass power plant - allocation of €7.5 million; and iii) biogas power plants - allocation of €7.5 million
The grant amount awarded per applicant ranges from €100,000 to €5 million.
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Use of measure
Not available.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement as case not in social partner domain
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No involvement as case not in social partner domain
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
There was no social partner involvement.
Views and reactions
Social partners fully support measures directed towards environment protections. There are debates in Croatia about the impact of climate change and climate change policy on job quality. Social partners, particularly trade unions like the Union of Autonomous Trade Unions of Croatia (UATUC) and of the Independent Trade Unions of Croatia (ITUC), demand that the executive authority take initiative, hold responsibility, engage in effective dialogue, and involve trade unions in all stages of the process of adaptation.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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C - Manufacturing
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C10 Manufacture of food products
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C11 Manufacture of beverages
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C12 Manufacture of tobacco products
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C13 Manufacture of textiles
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C14 Manufacture of wearing apparel
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C15 Manufacture of leather and related products
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C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
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C17 Manufacture of paper and paper products
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C18 Printing and reproduction of recorded media
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C19 Manufacture of coke and refined petroleum products
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C20 Manufacture of chemicals and chemical products
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C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
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C22 Manufacture of rubber and plastic products
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C23 Manufacture of other non-metallic mineral products
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C24 Manufacture of basic metals
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C25 Manufacture of fabricated metal products, except machinery and equipment
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C26 Manufacture of computer, electronic and optical products
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C27 Manufacture of electrical equipment
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C28 Manufacture of machinery and equipment n.e.c.
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C29 Manufacture of motor vehicles, trailers and semi-trailers
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This case is not occupation-specific.
Sources
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26 May 2023: Grants for production of electricity from renewable sources (nepovratna sredstva za proizvodnju električne energije iz obnovljivih izvora u prerađivačkoj industriji i toplinarstvu)
(www.zgradonacelnik.hr)
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16 June 2024: The new public tender for the allocation of funds (Novi javni poziv za dodjelu sredstava)
(www.fzoeu.hr)
