Overview

In 2018, final energy consumption in Croatia amounted around 6.8 Mtoe, 12.2% above its 2000 level. Residential sector was the largest consuming sector in 2018; consumption in this sector remained stable in the period from 2000 to 2018. Final energy consumption in the transport sector increased by 2.1% per year in the period from 2000 to 2018. In services this percentage was 2.8% per year. Final energy consumption in industry sector decreased in the observed period by 0.8% per year. Final energy consumption in building sector, comprising the residential and service sector, increased by 0.6% per year in the observed period.

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

Source: ODYSSEE

From 2000 till 2018, energy efficiency for final consumers, as measured by ODEX, improved by 21.4% (1.3% per year). The largest energy efficiency gains were achieved in the industry sector (2.2% per year), followed by the residential sector (1.4% per year) and the transport sector (0.8% per year). The trends in these sectors can be explained by the introduction of various regulations and financial incentives. In services, energy efficiency improved by 11.7%, or an average by 0.7% per year.

Figure 2: Technical Energy Efficiency Index

Source: ODYSSEE

In 2019, Croatia adopted its fourth National Energy Efficiency Action Plan (NEEAP) covering 2019, with an outlook to 2020. There are several targets established by the NEEAPs: 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 for the 2014-2020 period (this latter target is expected to be achieved 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 (starting with the year 2014) in public buildings is set to 4.89 TJ (0.117 Mtoe). Using bottom-up methods, it is estimated that the energy efficiency measures proposed in the 4th NEEAP will save 13.65 PJ (0.326 Mtoe) of final energy consumption in 2020. Total energy savings in final consumption, estimated with top-down methods, will reach 35.63 PJ (0.851 Mtoe), while total energy savings in primary energy consumption are estimated to reach 55.26 PJ (1.320 Mtoe), with 76% (42.03 PJ (1.004 Mtoe)) of these savings resulting from savings in final energy consumption and 24% (13.23 PJ (0.316 Mtoe)) of them resulting from energy efficiency measures in energy transformation, transmission and distribution. At the end of 2019, National Energy and Climate Plan (NECP) was adopted, stating new targets and measures for the 2021-2030 period. Energy efficiency obligation schemes will be the most important cross-cutting measure in this forthcoming period.

Table 1: Sample of cross-cutting measures

MeasuresNEEAP measuresDescriptionExpected savings, impact evaluationMore information available
Energy Efficiency Obligation (EEO) scheme yesThe EEO scheme obliges energy suppliers to meet the specified energy saving targets. The EEO scheme has been set up in 2019. It is expected that the scheme will deliver 50.1% of Article 7 cumulative savings through measures directed to energy consumers.HighLink
Source: MURE

Buildings

In 2018, space heating accounted for around 68% of the final energy consumption of the residential sector, specific electricity for 13.3%, water heating for 10.1%, cooking for around 6.6% and air cooling for 2.0%. Between 2000 and 2018, specific electricity increased by 6.4% (0.4% per year). In contrast, final energy consumption for space heating decreased by 1.0% (0.1% per year), due to energy efficiency and isolation of buildings, for cooking by 3.1% (0.2% per year) and for water heating by 3.0% (0.2% per year). Total final energy consumption in the residential sector in 2018 amounts almost the same as in 2000.

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

Source: ODYSSEE

Figure 4: Energy consumption per dwelling by end-use (except space heating)

Source: ODYSSEE

Final energy consumption of residential buildings in 2018 was on the same level as in 2000. The factors which contributed to such development of energy consumption over this period include: more dwellings (0.2 Mtoe), more appliances per dwelling (0.8 Mtoe) and larger homes (0.5 Mtoe). Energy savings (0.7 Mtoe) and other effects (0.8 Mtoe), which are mainly interpreted as a change in heating behaviours, offset the effect of drivers on consumption growth.

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

Source: ODYSSEE

Between 2000 and 2018, the energy consumption per employee increased by 1.3% per year. The electricity consumption per employee increased by 2.4% per year over the same period, as a result of a widespread diffusion of IT and electrical appliances in offices.

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, covering the period until end of 2020. These programmes are being implemented since then with their own energy saving targets. The overall target at the building level is the achievement of at least a 50% reduction in thermal energy needs. (For each building entering the programme, the annual energy needs for heating prior to renovation are calculated (according to methodology for energy certification of buildings). In order to receive subsidies, the energy renovation of a buildings needs to be designed so that at least 50% reduction of these energy needs for heating are achieved. This 50% is the requirement for each building and is based on the calculated energy demand for heating prior and after the renovation.) 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 buildings 2014-2020The 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 buildings 2016-2020The 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 2018 represents about 95.2% of total final energy consumption in transport. Water transport has a share of around 2.5%, rail transport of about 1.8% and domestic air transport of about 0.5%.

Figure 7: Transport energy consumption by mode

Source: ODYSSEE

The transport of passengers increased by 47.7% between 2000 and 2018. This increase was mainly observed in road transport while rail transport decreased.

Figure 8: Modal split of inland passenger traffic

Source: ODYSSEE

The total transport of goods (measured in tonne-kilometre) increased significantly, around 94.4% (3.8% per year) between 2000 and 2018. Concerning the total transport of goods, road and rail transport increased by 97.3% and 53.5%, respectively.

Figure 9: Modal split of inland freight traffic

Source: ODYSSEE

Energy consumption of transport increased by around 44.6% from 2000 to 2018. Energy consumption is mainly driven by the increase of the activity, slightly compensated by the energy savings. Modal shift and other drivers also participate to a higher energy consumption but as secondary effect.

Figure 10: Main drivers of the energy consumption variation in transport

Source: ODYSSEE

In the transport sector, the Croatian energy efficiency policy focuses on the use of alternative fuels and more efficient vehicles. This is mainly done through the fiscal policy (special tax on motor vehicles) as well as financial incentives for more efficient vehicles and for the development of an infrastructure in favour of alternative fuels usage, especially in the field of e-mobility.

Table 3: Sample of policies and measures implemented 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 (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 by 13.6% (0.8% per year) between 2000 and 2018. In 2018, most of the energy consumption was concentrated in four branches: non-metallic minerals (31.4% of total final energy consumption in industry), food (16.7%), chemicals (13.0%) and construction (8.6%). Most of the consumed energy in the industry sector was used in non-metallic minerals branch both in 2000 and 2018. The consumption of energy in non-metallic minerals branch decreased by about 14.3% over the period from 2000 to 2018, but the share remained quite constant. In other branches there is visible an increase of energy consumption.

Figure 11: Final energy consumption of industry by branch

Source: ODYSSEE

In the specific energy consumption for cement production, variations occur in certain years. During the period from 2000 to 2018, a trend of decreasing specific consumption can be observed, so that in 2018 it was lower by about 18% compared to the initial year.

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

Source: ODYSSEE

Factors that have contributed to a decrease in industrial energy consumption (0.2 Mtoe) since 2000 are energy savings and structure; energy savings had the greatest contribution to this decrease. Structural changes and energy savings have been partly offset by other effects and activity.

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. A total of €60 millions of funding from the EU Structural Funds has been used since 2017 for stimulating energy efficiency and RES in manufacturing industry.

Table 4: Sample of policies and measures implemented in the industry sector

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