Overview

In 2015, final energy consumption in Croatia amounted around 6,6 Mtoe. The residential sector, with around 37% of total final energy consumption was the largest consuming sector in Croatia in 2015. In comparison to 2000, the share of final energy consumption in the residential sector decreased by 1.4% in 2015, that is, from 38.1% to 36.7%. Regarding the total amount of final energy consumption in the residential sector, it increased by around 5.8% in 2015 in comparison to 2000. Over the same period, final energy consumption in the transport sector increased significantly by around 36%, in services it increased by around 52%, and in industry it significantly decreased by around 21%. The building sector, comprising the residential and service sector, accounted for around 48% of total final consumption in 2015. Total final energy consumption in 2015 was slightly above its 2000 level (9.8%).

Figure 1: Final energy consumption by sector (normal climate)

Source: ODYSSEE

Energy efficiency for final consumers, as measured by ODEX, improved by an average of 1.3% per year from 2000 to 2015, or by 19% over the same period. In the industry sector, energy efficiency improved by 28%, or on average by 1.9% per year from 2000. In the transport sector, energy efficiency improved by 10%, or on average by 0.7% per year. In the residential sector, there is also visible a significant progress in energy efficiency. It improved by 21% over the period from 2000 to 2015, or on average by 1.4% per year. This trend can be explained by the introduction of various regulations and financial incentives (grants and subsidies) affecting buildings and appliances. In services, energy efficiency improved by 13%, or on average by 0.9% per year.

Figure 2: Technical Energy Efficiency Index (ODEX)

Source: ODYSSEE

In 2014, Croatia adopted its third National Energy Efficiency Action Plan (NEEAP) for the period from 2014 to 2016, while the 4th NEEAP for the period from 2017 to 2019 is still being considered for adoption by the Government. There are several targets established by the NEEAP: 1) primary energy consumption in 2020 will not exceed 448.5 PJ (10.71 Mtoe); 2) final energy consumption in 2020 will not exceed 291.3 PJ (6.96 Mtoe); 3) according to Article 7 of the Energy Efficiency Directive, the national target for cumulative energy savings has been set to 54.250 PJ in the period from the beginning of 2014 to the end of 2020 (this target is expected to be fulfilled by a combination of energy efficiency obligation schemes for energy suppliers and alternative measures); and 4) according to Article 5 of the Energy Efficiency Directive, the national target for annual energy savings in public buildings is set to 4.89 TJ (0.117 ktoe). Using bottom-up methods, it is estimated that the energy efficiency measures proposed in the 4th NEEAP will save 13.65 PJ of final energy consumption in 2020. Total energy savings in final consumption, estimated with top-down methods, reached 35.63 PJ, while total energy savings in primary energy consumption are estimated to have reached 55.26 PJ, with 76% (42.03 PJ) of these savings resulting from savings in final energy consumption and 24% (13.23 PJ) of them resulting from energy efficiency measures in energy transformation, transmission and distribution.

Table 1: Sample of cross-cutting measures

MeasuresNEEAP measuresDescriptionExpected savings, impact evaluationMore information available
Energy Efficiency Obligation (EEO) scheme yesThe EEO scheme will oblige energy suppliers to meet the specified energy saving targets. The EEO scheme has not yet been set up, but its implementation is expected as soon as revisions of the Energy Efficiency Act are adopted. It is expected that the scheme will deliver 43% of Article 7 cumulative savings through measures directed to energy consumers.HighLink
Information campaigns and promotion of energy serviceyesAll programmes offering financial support to energy efficiency measures are accompanied by strong promotional activities. Campaigns are coordinated by the National Energy Efficiency Coordination Body and documented on the National Energy Efficiency Portal (www.enu.hr).MediumLink
Source: MURE

Buildings

In 2015, space heating accounted for around 68% in the residential sector, electrical appliances for 15%, water heating for 8% and cooking for 9%. While electrical appliances recorded a 3% increase since 2000, space heating consumption decreased by 1% over the same period. Besides, energy consumption of cooking and water heating decreased by 0.3% and 1.7%, respectively. Total final energy consumption in the residential sector increased by around 5.8% since 2000.

Figure 3: Energy consumption of space heating per m2 (normal climate)

Source: ODYSSEE

Figure 4: Energy consumption by end-use per dwelling

Source: ODYSSEE

Final energy consumption of residential buildings was 0.13 Mtoe higher in 2015 than in 2000. The factors which contributed to the increase in energy consumption over the same period include: larger homes (by 0.4 Mtoe), other effects (by 0.3 Mtoe), more dwellings (by 0.2 Mtoe) and climate effect (by 0.05 Mtoe). Energy savings (0.6 Mtoe) partially offset the effect of drivers on consumption growth, but in total, energy consumption increased in the observed period.

Figure 5: Main drivers of the energy consumption variation in households

Source: ODYSSEE

Since 2000, the energy consumption per employee increased by an average of 1.1% per year. Due to the diffusion of IT and electrical appliances in offices, the electricity consumption per employee increased by, on average, 2.9% per year over the same period, despite the fact that most electrical equipment is more efficient.

Figure 6: Energy and electricity consumption per employee (normal climate)

Source: ODYSSEE

In Croatia, the first thermal building code was implemented in 2005 and has since been updated and strengthened several times. Minimum energy performance requirements for buildings have been integrated in the Construction Act for new buildings, as well as for major reconstructions of existing buildings, and are dependent on the type of the building. The greatest potential for energy efficiency improvements lies in the existing building stock, as 85% of it was built without building codes. Therefore, the improvement of the energy performance of buildings is a top priority of the Croatian energy efficiency policy. Four specific programmes for energy renovation of buildings (single family houses, multi-apartment buildings, public buildings and commercial buildings) were adopted by the Government in 2014 and are being implemented since then. Each of these programmes has its own energy saving targets, with the main condition at the building level being the achievement of at least a 50% reduction in thermal energy needs. The main policy instruments for buildings, beside regulation, are financial programmes, the most utilised of which are those for multi-apartment buildings and public buildings, with the use of the EU Structural Funds.

Table 2: Sample of policies and measures implemented in the building sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Programme for energy refurbishment of multi-apartment buildingsThe programme offers up to 60% grants for energy efficiency measures in line with the recommendations given in the energy audit. The main requirement is to implement measures for the improvement of building envelope and to achieve a reduction of at least 50% in a building’s thermal energy needs.HighLink
Programme for energy refurbishment of public buildingsThe programme offers grants for energy efficiency measures in line with the recommendations given in the energy audit. Grants are in the range between 35 and 60% of eligible energy refurbishment costs. The main requirement is to implement measures for the improvement of building envelope and to achieve a reduction of at least 50%in a building’s thermal energy needs.HighLink
Source: MURE

Transport

Road transport in 2015 represents about 90% of total final energy consumption in transport. Rail transport had the share of about 1.7%, water transport of around 2% and air transport of about 6%.

Figure 7: Split of the transport energy consumption by mode

Source: ODYSSEE

The transport of passengers increased by 37% in the period from 2000 to 2015. This increase was mainly observed in road transport (by cars and buses) while rail transport decreased.

Figure 8: Share of transport in passenger traffic

Source: ODYSSEE

The transport of goods (measured in tonne-kilometre) increased rapidly by around 55% in the period from 2000 to 2015. When it comes to the total transport of goods, road and rail transport increased by 66% and 22%, respectively, while water transport decreased by 75%.

Figure 9: Share of modes in freight traffic

Source: ODYSSEE

Transport energy consumption increased by around 36% in the period from 2000 to 2015. This trend occurred due to the fact that energy savings were smaller than the impact of the activity effect and other effects.

Figure 10: Main drivers of the energy consumption variation in transport (2000-2014)

Source: ODYSSEE

The Croatian energy efficiency policy for the transport sector is focused on enabling a framework for the use of alternative fuels and on supporting the use of more efficient vehicles. This is mainly done through the fiscal policy (special tax on motor vehicles) and financial incentives for more efficient vehicles and for development of infrastructure for the use of alternative fuels.

Table 3: Policies and measures into force in the transport sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Carbon tax on motor vehiclesIn 2016, revisions of the Motor Vehicle Special Tax Act were adopted. The special tax is determined on the basis of the motor vehicle’s market price, CO2 emissions (expressed in grams per kilometre), engine volume (expressed in cubic centimetres) and the level of greenhouse gas emissions. LowLink
Financial incentives for energy efficient vehiclesEfficient vehicles (hybrids with limited CO2 emissions, plug-in hybrids, electric vehicles, vehicles using other alternative fuels) are financially supported by grants being provided by the Environmental Protection and Energy Efficiency Fund since 2014.LowLink
Source: MURE

Industry

Final energy consumption in industry decreased significantly in the period from 2000 to 2015 by around 1.4% per year, or in total by 21.2% over the same period. In 2015, most of the final energy consumption was concentrated in 4 industry branches: non-metallic minerals (30.25% of total final energy consumption in industry); food, beverages and tobacco (18.6%); chemicals (13.8%) and construction (9.12%).

Figure 11: Final energy consumption by branch

Source: ODYSSEE

Of all four energy-intensive branches in the industry sector, most of the consumed energy in the industry sector was used in the non-metallic minerals branch both in 2000 and 2015, but with significantly smaller amount in 2015. The consumption of energy in the non-metallic minerals branch decreased by about 25% over the period from 2000 to 2015. The branches of food, beverages and tobacco and construction consumed approximately the same amount of energy in 2000 and 2015. A significant decrease of energy consumption was visible in the chemicals branch as well.

Figure 12: Unit consumption of energy‐intensive products (toe/t)

Source: ODYSSEE

Since 2000, many factors contributed to a decrease in industrial energy consumption (-0.3 Mtoe): industrial recession, structural changes and energy savings were partly offset by other effects. In particular, since the beginning of economic crisis, energy savings had a much lower impact because of a lower renewal rate of equipment and inefficient operations.

Figure 13: Main drivers of the energy consumption variation in industry

Source: ODYSSEE

The Croatian energy efficiency policy for the industrial sector is focused on regulatory, informational and financial measures. According to the Energy Efficiency Act, all large enterprises are obliged to perform energy audits every five years or, alternatively, to introduce a standardised energy management system based on international norms. The establishment of an Industrial Energy Efficiency Network is planned for providing information and technical assistance. Also, previously, the national Environmental Protection and Energy Efficiency Fund had provided financial support to industrial users for the introduction of energy management systems and for implementation of energy efficiency measures. Funding from the National Fund has been replaced by funding from the EU Structural Funds, from which €60 million are available.

Table 4: Policies and measures into force in industry

MeasuresDescriptionExpected savings, impact evaluationMore information available
Stimulating energy efficiency and RES use in industry with EU fundingGrants and soft loans for EE and RES investments are planned in all industrial branches except for the food and tobacco industry.HighLink
Source: MURE