Blog – Full Width

Croatia plans to install an electricity interconnector under the Adriatic Sea to Italy, but also to build a nuclear power plant, according to Minister of Economy Ante Šušnjar. In his words, nuclear and geothermal energy are crucial for the country’s energy security.

Economy Minister Ante Šušnjar highlighted the importance of connecting the power grids of Croatia and Italy. The two countries are discussing an underwater power link between Dalmatia and the Italian coast, he underlined.

A subsea power cable would significantly relieve the Croatian network during periods of peak loads on the coast, and at the same time open up the possibility of two-way transmission of electricity, including the export of electricity to Italy – one of the largest European consumers, Šušnjar pointed out at the Energy Revolution – Road to a Sustainable Future conference, organized by Poslovni Dnevnik.

It is unfortunate that Croatia doesn’t have a power link with Italy, like Montenegro and Albania

He expressed the belief that the cable would solve the problems that Croatia’s coastal areas have from generating power with solar power plants and wind farms.

Technical plans for the project already exist, but it is difficult to talk about deadlines, he said. Once the political and market conditions are met, the cable could be installed in no time, the minister claimed.

In his words, Croatia sadly doesn’t have a power link with Italy, like Montenegro and Albania, Telegram.hr reported. Of note, the Montenegro-Italy cable has been operational since 2019, while Albania and Italy recently announced plans to install one.

Croatia intends to build a nuclear power plant

He recalled the importance of diversifying energy sources, highlighting geothermal as a stable, year-round renewable source with great potential, especially in the Croatian part of the Pannonian Basin.

In addition to geothermal, Croatia is considering the role of nuclear energy. It has established a working group to analyze options including an extension of the operation of the Krško nuclear power plant, construction of new capacities, and development of small modular reactors (SMRs).

Geothermal and nuclear energy are opportunities for sustainability, technological progress, and greater energy security, Šušnjar underscored.

He stressed Croatia’s intention to install a nuclear power plant and hinted at the SMR technology.

Aurora Energy published a long-term outlook about prices and renewable energy investments in Greece.

Baseload power prices in the country are expected to peak in 2025 due to higher demand and gas volatility, says Aurora, then drop as renewable energy expand and gas markets stabilize.

Renewable energy projects’ capture prices decline after 2030, especially for solar. However, compared with the levelized cost of electricity (LCOE), they are expected to provide investable returns in the long run.

From 2031 onwards, the analysts see onshore wind capture prices declining by an average of 1% annually, following the trend in the baseload segment.

From 2031 to 2060, solar capture prices are anticipated to be, on average, 54% lower than baseload prices, surpassing wind due to higher capacities and increased synchronous solar generation, which leads to greater price cannibalization.

As for energy storage, Aurora highlighted the importance of the average spread between the lowest and highest prices within the day. It expects an increase of 20% from 2026 to 2040. Namely, high solar and wind output during low demand periods lowers prices, while high demand and low renewables push prices up, with hydropower and gas-fired plants setting prices amid higher gas and carbon costs, the firm explained.

Aurora expressed the belief that when it comes to merchant battery projects, their viability would depend on their entry year, as well as the hourly storage duration. Early investments are expected to capture higher returns than later ones.

Negative prices introduced

Except the said long-term trends, a change in the Greek power market will soon affect renewable energy producers.

Ahead of Greece’s entrance into the PICASSO balancing energy platform, the Independent Power Transmission Operator (IPTO or ADMIE) opened the door for negative prices in the balancing market, at a maximum of EUR 50 per MWh. The change will be applied sometime within the next few months.

It is only the first step and the limit would gradually increase to EUR 15,000 per MWh below zero. Owners of renewable electricity plants of certain categories would be impacted because until now, prices in the wholesale market rarely went below EUR 0.04 per MWh.

Even at such a low level, producers are still able to get paid fully based on their contracts for difference (CfDs). However, if there are two consecutive zero or negative hourly prices, they would receive nothing and may even have to pay to produce in such periods.

During the recent Power & Gas Forum held in Athens, Aristotle University of Thessaloniki Professor Stavros Papathanasiou warned that negative prices would become a much stronger threat to investments in renewables.

A new support program has been launched in Greece to help households install new solar heaters or heat pumps.

The government has announced a new EUR 223.2 million support program to facilitate the use of green heating systems for households, such as rooftop solar heaters and heat pumps. It takes place under the RePowerEU policy initiative and the National Recovery and Resilience Plan Greece 2.0. They are financed from the EU’s NextGenerationEU package for economic recovery from the COVID-19 pandemic.

The program supports the purchase of new solar heaters, covering 50% to 60%, depending on the applicant’s income. Eligible costs for heat pumps amount to 50%, while installation works are also covered with 50% to 60%.

The systems can be installed in primary or secondary residences. The program also takes into account the number of children, the location of the house and the local climate to determine the extent of the support. In previous programs, the condition of the house and its energy label were the primary considerations.

Households can apply until the end of March.

More programs for houses, water utilities and schools

Another significant program running this year is for energy saving in houses with a budget of EUR 434 million. Its goal is to reduce energy consumption by a minimum of 30% and lift the energy class by at least three grades. Houses in Evrytania, Kozani, Florina, Imathia and Kastoria have priority as the coldest areas in the country.

In addition, the Ministry of Environment and Energy prepared a program to upgrade schools, water utilities and hotels in mountainous regions. It earmarked EUR 49.6 million, EUR 40 million and EUR 10 million, respectively.

While the grant schemes are vast, a major question is whether the state will pay beneficiaries on time. During previous energy saving schemes, big delays were reported and many citizens and businesses have not received the money yet. In any case, Minister of Environment and Energy Thodoros Skylakakis said the application deadlines wouldn’t be extended.

By Nathalie Hemeleers – Director of EU Affairs at the Solar Impulse Foundation, one of EUSEW’s partner organizations,highlighting the critical role of energy efficiency, emphasizing its importance in driving decarbonization, competitiveness, and resource optimization, innovative solutions, and supportive financing and policies.

Decarbonizing our energy supply through renewable sources of energy is absolutely key. But if the current wasteful practices continue, renewable energy consumption will just add to the current fossil fuels consumption, instead of replacing it. Investing in a more efficient energy system is key to decarbonization but also to competitiveness and security.

A world stuck in the past.

The world we live in is stuck in the past. The technologies allowing us to exploit resources have remained largely unchanged since the Industrial Revolution. Our economy is characterized by waste and inefficiency.

Consider that internal combustion engines lose more than two-thirds of the energy we create, and more than a quarter of our drinking water is lost every year due to preventable and treatable leaks in the distribution network. Or consider that a third of the food we produce is thrown away – wasting not just the final product but all the energy and resources needed to produce it and get it to where it is meant to be. We can do so much better.

The value of energy efficiency

Energy efficiency is not a new concept, especially for EU lawmakers. It does not only allow us to save resources but also (and maybe more importantly for many?) money. It has been estimated that around $4.5 trillion could be saved annually thanks to energy efficiency.

Also, energy efficiency in buildings alone can almost halve seasonal peak demand (up to 49.5% reduction) every year by 2050, avoiding stranded assets and unnecessary investments in grids. €44.2 billion could be saved every year, making the much-needed investments in the EU’s distribution grid more cost-effective!

Why is it so difficult to implement?

Energy efficiency is still seen by many as a restriction of business opportunities. We need to change that narrative.

In a time where competitiveness is at the top of policy-makers’ attention, efficiency should be seen as a close ally. By investing in efficient production systems, costs are reduced giving businesses a double competitive advantage of producing at a lower cost and in a cleaner way.

Solutions are within reach

And good news, innovative efficient solutions exist! The Solar Impulse Foundation has identified and labeled more than 1,500 existing solutions that can make this paradigm shift a reality, in virtually any sector of society.

They are available today, open source, on www.solarimpulse.com. These are just a few among the many already existing, showing that the shift we are calling for is realistic and within reach.

Financing efficient solutions

Now, mobilizing public and private capital to invest in clean and efficient solutions and modernize our economies will be key.

New business models have to emerge, those that reward efficiency. EU institutions and financial stakeholders have to propose new financing tools that will tackle the double challenge of high CAPEX and higher risk for businesses, especially SMEs.

A modernized economy based on efficiency is a qualitative economy that has as a key driver the continuous optimization of resources.

Efficiency as the cornerstone of progress

The fundamental goal is to achieve heightened efficiency in various sectors, prioritizing sustainable practices and minimizing waste. Basically, accomplishing more (and better) with fewer resources, thereby contributing to a reduced environmental footprint.

Decarbonization is no longer the end goal but becomes a consequence of a modernization process, one that creates jobs and economic activity.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2025. See ec.europa.eu/eusew for open calls.

By Nathalie Hemeleers – Director of EU Affairs at the Solar Impulse Foundation, one of EUSEW’s partner organizations,highlighting the critical role of energy efficiency, emphasizing its importance in driving decarbonization, competitiveness, and resource optimization, innovative solutions, and supportive financing and policies.

Decarbonizing our energy supply through renewable sources of energy is absolutely key. But if the current wasteful practices continue, renewable energy consumption will just add to the current fossil fuels consumption, instead of replacing it. Investing in a more efficient energy system is key to decarbonization but also to competitiveness and security.

A world stuck in the past.

The world we live in is stuck in the past. The technologies allowing us to exploit resources have remained largely unchanged since the Industrial Revolution. Our economy is characterized by waste and inefficiency.

Consider that internal combustion engines lose more than two-thirds of the energy we create, and more than a quarter of our drinking water is lost every year due to preventable and treatable leaks in the distribution network. Or consider that a third of the food we produce is thrown away – wasting not just the final product but all the energy and resources needed to produce it and get it to where it is meant to be. We can do so much better.

The value of energy efficiency

Energy efficiency is not a new concept, especially for EU lawmakers. It does not only allow us to save resources but also (and maybe more importantly for many?) money. It has been estimated that around $4.5 trillion could be saved annually thanks to energy efficiency.

Also, energy efficiency in buildings alone can almost halve seasonal peak demand (up to 49.5% reduction) every year by 2050, avoiding stranded assets and unnecessary investments in grids. €44.2 billion could be saved every year, making the much-needed investments in the EU’s distribution grid more cost-effective!

Why is it so difficult to implement?

Energy efficiency is still seen by many as a restriction of business opportunities. We need to change that narrative.

In a time where competitiveness is at the top of policy-makers’ attention, efficiency should be seen as a close ally. By investing in efficient production systems, costs are reduced giving businesses a double competitive advantage of producing at a lower cost and in a cleaner way.

Solutions are within reach

And good news, innovative efficient solutions exist! The Solar Impulse Foundation has identified and labeled more than 1,500 existing solutions that can make this paradigm shift a reality, in virtually any sector of society.

They are available today, open source, on www.solarimpulse.com. These are just a few among the many already existing, showing that the shift we are calling for is realistic and within reach.

Financing efficient solutions

Now, mobilizing public and private capital to invest in clean and efficient solutions and modernize our economies will be key.

New business models have to emerge, those that reward efficiency. EU institutions and financial stakeholders have to propose new financing tools that will tackle the double challenge of high CAPEX and higher risk for businesses, especially SMEs.

A modernized economy based on efficiency is a qualitative economy that has as a key driver the continuous optimization of resources.

Efficiency as the cornerstone of progress

The fundamental goal is to achieve heightened efficiency in various sectors, prioritizing sustainable practices and minimizing waste. Basically, accomplishing more (and better) with fewer resources, thereby contributing to a reduced environmental footprint.

Decarbonization is no longer the end goal but becomes a consequence of a modernization process, one that creates jobs and economic activity.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2025. See ec.europa.eu/eusew for open calls.

Kosovo* has secured a EUR 50 million loan for energy efficiency measures in public buildings. The project, the largest ever for energy efficiency in Kosovo*, is worth EUR 86 million.

The EUR 50 million loan provided by the European Bank For Reconstruction and Development (EBRD) would be on-lent to the Kosovo Energy Efficiency Fund (KEEF).

It would use it for energy efficiency measures in up to 400 public buildings including administrative, education and healthcare facilities at central and municipal levels, and publicly-owned enterprises, according to the project.

The endeavor will be co-funded with EUR 12.6 million from the Government of Kosovo*, a EUR 7 million grant from the European Union through the Regional Energy Efficiency Programme (REEP) for the Western Balkans, and EUR 3 million from the Danish Fund for Kosovo.

The rest will be provided through technical cooperation funds, according to the EBRD.

The project would bring average energy savings of 30% to 50%

The measures include adding thermal insulation, upgrading or replacing various systems (heating, lighting and electrical), replacing doors and windows, and applying any other necessary structural and comfort measures.

It is expected that the project would bring average energy savings of 30% to 50%, EBRD said.

The project would also improve the energy performance of the renovated buildings by at least two Energy Performance Certificate classes, and comfort in the renovated buildings.

Maslichenko: Improving the energy efficiency of buildings stands as a vital priority in the Western Balkans and the EU

According to Sergiy Maslichenko, EBRD Head of Kosovo, improving the energy efficiency of buildings is a vital regional priority in the Western Balkans and across the European Union, reflecting collective commitment to sustainability.

Minister of Economy Artane Rizvanolli said she is delighted that the project would not only help Kosovo* improve the energy efficiency and quality of 400 buildings, but also update and improve its database on the condition of the entire public building stock in Kosovo.

“The largest-ever energy efficiency program will start this year,” she added.

The signing of the loan agreement was also attended by Minister of Finance Hekuran Murati and KEEF’s manager Driton Hetemi.

Kosovo* has secured a EUR 50 million loan for energy efficiency measures in public buildings. The project, the largest ever for energy efficiency in Kosovo*, is worth EUR 86 million.

The EUR 50 million loan provided by the European Bank For Reconstruction and Development (EBRD) would be on-lent to the Kosovo Energy Efficiency Fund (KEEF).

It would use it for energy efficiency measures in up to 400 public buildings including administrative, education and healthcare facilities at central and municipal levels, and publicly-owned enterprises, according to the project.

The endeavor will be co-funded with EUR 12.6 million from the Government of Kosovo*, a EUR 7 million grant from the European Union through the Regional Energy Efficiency Programme (REEP) for the Western Balkans, and EUR 3 million from the Danish Fund for Kosovo.

The rest will be provided through technical cooperation funds, according to the EBRD.

The project would bring average energy savings of 30% to 50%

The measures include adding thermal insulation, upgrading or replacing various systems (heating, lighting and electrical), replacing doors and windows, and applying any other necessary structural and comfort measures.

It is expected that the project would bring average energy savings of 30% to 50%, EBRD said.

The project would also improve the energy performance of the renovated buildings by at least two Energy Performance Certificate classes, and comfort in the renovated buildings.

Maslichenko: Improving the energy efficiency of buildings stands as a vital priority in the Western Balkans and the EU

According to Sergiy Maslichenko, EBRD Head of Kosovo, improving the energy efficiency of buildings is a vital regional priority in the Western Balkans and across the European Union, reflecting collective commitment to sustainability.

Minister of Economy Artane Rizvanolli said she is delighted that the project would not only help Kosovo* improve the energy efficiency and quality of 400 buildings, but also update and improve its database on the condition of the entire public building stock in Kosovo.

“The largest-ever energy efficiency program will start this year,” she added.

The signing of the loan agreement was also attended by Minister of Finance Hekuran Murati and KEEF’s manager Driton Hetemi.

Author: Ana Slovenec, Senior Associate at Bardek, Lisac, Mušec, Skoko and partners in cooperation with CMS Reich-Rohrwig Hainz

Croatia’s energy savings trading system, governed by the Energy Efficiency Act and supported by the SMiV platform, provides a structured approach to tracking, verifying, and monetizing energy efficiency measures. The system enables participants to trade energy savings through a mechanism of so-called white certificates, while defining clear roles for obligated and voluntary actors. Staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream, as recent updates include an increase in national energy savings targets, advancements in verification methodologies, and evolving opportunities in the Croatian energy savings market.

How to generate income from trading energy savings in Croatia?

In an era where energy efficiency has become an increasingly important priority, monetizing energy savings offers a unique opportunity to turn environmental efforts into financial gains. Thanks to energy efficiency certificates, legally recognized in Croatia as “energy savings” and commonly as “white certificates” individuals and organizations can now participate in a system that tracks, verifies, and potentially capitalizes these savings.

At the heart of this process lies the System for Monitoring, Measurement, and Verification of Energy Savings (SMiV), a centralized web platform designed to systematically track energy savings resulting from energy efficiency measures and ensuring that they are accurately recorded and transferred. SMiV allows participants to verify their savings acquired on the market. It is open for participation to market participants that are, by operation of law, obliged to achieve energy savings (“obliged parties” or “OPs”), those required to register data in the SMiV, but also to all other market participants that have no such obligations but wish to earn gains on energy savings they have voluntarily achieved.  This system, regulated by the Energy Efficiency Act and the Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings is managed by the Croatian Ministry of Economy through its Directorate for Energy, Service for Energy Efficiency and New Technologies acting as the National Coordination Body.

Mandatory cumulative energy savings target in final energy consumption

For the period spanning from the beginning of 2021 to the end of 2030, the Energy Efficiency Act set the target for mandatory cumulative energy savings in final energy consumption at 2,993.7 kton. This target is designed to contribute to achieving the national energy efficiency objectives outlined in the Integrated National Energy and Climate Plan of Croatia for 2021–2030. The target is aimed to be achieved, among other, by mandatory energy savings imposed on obliged parties. Obliged parties can either achieve energy savings by their own energy savings measures, or by buying energy savings from other parties, either other obliged parties, or more frequently, from parties that voluntarily achieved and now wish to sell them.

In line with Directive (EU) 2023/1791, Croatia has recently recalculated its cumulative energy savings target and submitted the updated figure to the European Commission as part of the draft revised National Energy and Climate Plan. The total cumulative savings target for the 2021–2030 period has been increased by 44%, from 2,993.7 kton to 4,313.6 kton. To align with this update, amendments to the Energy Efficiency Act are currently in progress.

Who participates in the SMiV system by default and who can participate by choice?

Mandatory participants of the SMiV system are obliged parties and reporting parties. These entities will be penalised should they fail to submit data on achieved energy savings to the system.

Obliged parties are energy suppliers and all their associated entities that are energy suppliers, provided that in the year preceding the last year, they supplied more than 50 GWh of energy to final customers or to distribution stations selling energy to final customers. These parties must compensate the Environmental Protection and Energy Efficiency Fund for any unmet portion of their energy savings obligation, whether achieved directly or acquired from other participants.

Reporting parties are public sector bodies, energy service providers, subsidy providers, and transmission and distribution system operators. Both entities are required to enter the data in the SMiV as soon as the energy efficiency improvement measure has been implemented, and no later than 15 February of the current year for all measures implemented in the previous year, or always upon the request of the National Coordination Body. Additionally, they must appoint at least one person responsible for data entry and notify the National Coordination Body of this appointment.

Participants other than the obliged parties and reporting parties participate in the SMiV platform by choice. These participants independently financed and implemented energy efficiency improvement measures or acquired energy savings from another party without having statutory obligation to achieve savings and now wish to sell them or transfer them to obliged parties and/or reporting parties.

How are energy savings demonstrated and what can be considered an energy efficiency improvement measure?

The methodology for assessing the expected impacts of individual energy efficiency measures follows a bottom-up (BU) approach to evaluating energy savings. This approach uses mathematical formulas to calculate unit energy savings (UFES), which are expressed per unit relevant to the specific energy efficiency measure being considered. Total energy savings in final consumption (FES) are calculated by multiplying the UFES value by the relevant influencing factor for the period under review and summing the results of all individual projects within a given measure.

The calculation of UFES is based on the difference in specific energy consumption “before” and “after” implementing the energy efficiency improvement measure. When determining how much savings from implemented measures contribute to achieving national energy savings targets, the measure’s lifespan is critical. The lifespan represents the number of years during which the calculated annual energy savings remain valid and can be counted toward the national target.

Energy savings are demonstrated by the Energy Savings Study, which is prepared and signed by authorized professionals in the field of architecture, construction, mechanical engineering, electrical engineering, or those qualified to conduct energy audits and certify energy efficiency for buildings or large enterprises. Authorized professionals must be from the field relevant to the specific energy efficiency improvement measure for which the study is being prepared. By signing the Energy Savings Study, they guarantee the accuracy of the energy savings calculations and the validity of the submitted supporting evidence.

Any energy efficiency improvement measure is acceptable as long as the methodology for calculating savings and the outline of the new annual and cumulative energy savings can be provided in the Energy Savings Study. The Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings provides prescribed formulas for calculating energy savings from specific measures. These measures include informational measures (such as educational campaigns on energy efficiency, renewable energy, and energy-efficient appliances), organizational measures (such as implementing smart metering systems for monitoring electricity, heating, gas, and water consumption), measures in centralized heating systems, transportation, industry, and measures in residential and non-residential buildings. Examples of the latter include installing photovoltaic solar modules, solar thermal systems for hot water heating, heat pumps, and automated systems for regulating heating, lighting, and electricity consumption in buildings, etc.

The Energy Savings Study is submitted electronically to the SMiV, where it is verified by the National Coordination Body to ensure transparency and accountability. Following the verification, the National Coordination Body confirms that the energy savings have been achieved and are attributed to the energy savings holder.

Trading energy savings: current opportunities and limitations

Although the SMiV currently serves as a repository for verified energy savings, it has not yet been designed to operate as a functional energy savings exchange platform. However, this does not mean that energy savings cannot be traded. Trading takes place outside the SMiV, through private transactions for the purchase and/or transfer of savings. Once the transaction is completed, the details are submitted to the National Coordination Body for registration in the SMiV. The transfer of savings to the new holder is finalized at the moment of registration in the SMiV.

The system then adjusts the savings balance for both the transferring and receiving parties accordingly. Each energy savings holder can monitor their verified savings through their profile in the SMiV.

The free market for energy savings

Under current regulations, energy savings can be bought and sold in a free market, with prices being privately negotiated between the involved parties. While these agreements are submitted to the SMiV for record-keeping, their financial details are typically redacted to ensure confidentiality while maintaining regulatory compliance.

Unlocking the potential of energy savings trading

As regulations evolve and awareness increases, the SMiV platform is expected to incorporate additional features that will facilitate the direct exchange of energy savings between various players, thereby expanding and enhancing the market. For those looking to capitalize on this opportunity, staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream.

Author: Ana Slovenec, Senior Associate at Bardek, Lisac, Mušec, Skoko and partners in cooperation with CMS Reich-Rohrwig Hainz

Croatia’s energy savings trading system, governed by the Energy Efficiency Act and supported by the SMiV platform, provides a structured approach to tracking, verifying, and monetizing energy efficiency measures. The system enables participants to trade energy savings through a mechanism of so-called white certificates, while defining clear roles for obligated and voluntary actors. Staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream, as recent updates include an increase in national energy savings targets, advancements in verification methodologies, and evolving opportunities in the Croatian energy savings market.

How to generate income from trading energy savings in Croatia?

In an era where energy efficiency has become an increasingly important priority, monetizing energy savings offers a unique opportunity to turn environmental efforts into financial gains. Thanks to energy efficiency certificates, legally recognized in Croatia as “energy savings” and commonly as “white certificates” individuals and organizations can now participate in a system that tracks, verifies, and potentially capitalizes these savings.

At the heart of this process lies the System for Monitoring, Measurement, and Verification of Energy Savings (SMiV), a centralized web platform designed to systematically track energy savings resulting from energy efficiency measures and ensuring that they are accurately recorded and transferred. SMiV allows participants to verify their savings acquired on the market. It is open for participation to market participants that are, by operation of law, obliged to achieve energy savings (“obliged parties” or “OPs”), those required to register data in the SMiV, but also to all other market participants that have no such obligations but wish to earn gains on energy savings they have voluntarily achieved.  This system, regulated by the Energy Efficiency Act and the Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings is managed by the Croatian Ministry of Economy through its Directorate for Energy, Service for Energy Efficiency and New Technologies acting as the National Coordination Body.

Mandatory cumulative energy savings target in final energy consumption

For the period spanning from the beginning of 2021 to the end of 2030, the Energy Efficiency Act set the target for mandatory cumulative energy savings in final energy consumption at 2,993.7 kton. This target is designed to contribute to achieving the national energy efficiency objectives outlined in the Integrated National Energy and Climate Plan of Croatia for 2021–2030. The target is aimed to be achieved, among other, by mandatory energy savings imposed on obliged parties. Obliged parties can either achieve energy savings by their own energy savings measures, or by buying energy savings from other parties, either other obliged parties, or more frequently, from parties that voluntarily achieved and now wish to sell them.

In line with Directive (EU) 2023/1791, Croatia has recently recalculated its cumulative energy savings target and submitted the updated figure to the European Commission as part of the draft revised National Energy and Climate Plan. The total cumulative savings target for the 2021–2030 period has been increased by 44%, from 2,993.7 kton to 4,313.6 kton. To align with this update, amendments to the Energy Efficiency Act are currently in progress.

Who participates in the SMiV system by default and who can participate by choice?

Mandatory participants of the SMiV system are obliged parties and reporting parties. These entities will be penalised should they fail to submit data on achieved energy savings to the system.

Obliged parties are energy suppliers and all their associated entities that are energy suppliers, provided that in the year preceding the last year, they supplied more than 50 GWh of energy to final customers or to distribution stations selling energy to final customers. These parties must compensate the Environmental Protection and Energy Efficiency Fund for any unmet portion of their energy savings obligation, whether achieved directly or acquired from other participants.

Reporting parties are public sector bodies, energy service providers, subsidy providers, and transmission and distribution system operators. Both entities are required to enter the data in the SMiV as soon as the energy efficiency improvement measure has been implemented, and no later than 15 February of the current year for all measures implemented in the previous year, or always upon the request of the National Coordination Body. Additionally, they must appoint at least one person responsible for data entry and notify the National Coordination Body of this appointment.

Participants other than the obliged parties and reporting parties participate in the SMiV platform by choice. These participants independently financed and implemented energy efficiency improvement measures or acquired energy savings from another party without having statutory obligation to achieve savings and now wish to sell them or transfer them to obliged parties and/or reporting parties.

How are energy savings demonstrated and what can be considered an energy efficiency improvement measure?

The methodology for assessing the expected impacts of individual energy efficiency measures follows a bottom-up (BU) approach to evaluating energy savings. This approach uses mathematical formulas to calculate unit energy savings (UFES), which are expressed per unit relevant to the specific energy efficiency measure being considered. Total energy savings in final consumption (FES) are calculated by multiplying the UFES value by the relevant influencing factor for the period under review and summing the results of all individual projects within a given measure.

The calculation of UFES is based on the difference in specific energy consumption “before” and “after” implementing the energy efficiency improvement measure. When determining how much savings from implemented measures contribute to achieving national energy savings targets, the measure’s lifespan is critical. The lifespan represents the number of years during which the calculated annual energy savings remain valid and can be counted toward the national target.

Energy savings are demonstrated by the Energy Savings Study, which is prepared and signed by authorized professionals in the field of architecture, construction, mechanical engineering, electrical engineering, or those qualified to conduct energy audits and certify energy efficiency for buildings or large enterprises. Authorized professionals must be from the field relevant to the specific energy efficiency improvement measure for which the study is being prepared. By signing the Energy Savings Study, they guarantee the accuracy of the energy savings calculations and the validity of the submitted supporting evidence.

Any energy efficiency improvement measure is acceptable as long as the methodology for calculating savings and the outline of the new annual and cumulative energy savings can be provided in the Energy Savings Study. The Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings provides prescribed formulas for calculating energy savings from specific measures. These measures include informational measures (such as educational campaigns on energy efficiency, renewable energy, and energy-efficient appliances), organizational measures (such as implementing smart metering systems for monitoring electricity, heating, gas, and water consumption), measures in centralized heating systems, transportation, industry, and measures in residential and non-residential buildings. Examples of the latter include installing photovoltaic solar modules, solar thermal systems for hot water heating, heat pumps, and automated systems for regulating heating, lighting, and electricity consumption in buildings, etc.

The Energy Savings Study is submitted electronically to the SMiV, where it is verified by the National Coordination Body to ensure transparency and accountability. Following the verification, the National Coordination Body confirms that the energy savings have been achieved and are attributed to the energy savings holder.

Trading energy savings: current opportunities and limitations

Although the SMiV currently serves as a repository for verified energy savings, it has not yet been designed to operate as a functional energy savings exchange platform. However, this does not mean that energy savings cannot be traded. Trading takes place outside the SMiV, through private transactions for the purchase and/or transfer of savings. Once the transaction is completed, the details are submitted to the National Coordination Body for registration in the SMiV. The transfer of savings to the new holder is finalized at the moment of registration in the SMiV.

The system then adjusts the savings balance for both the transferring and receiving parties accordingly. Each energy savings holder can monitor their verified savings through their profile in the SMiV.

The free market for energy savings

Under current regulations, energy savings can be bought and sold in a free market, with prices being privately negotiated between the involved parties. While these agreements are submitted to the SMiV for record-keeping, their financial details are typically redacted to ensure confidentiality while maintaining regulatory compliance.

Unlocking the potential of energy savings trading

As regulations evolve and awareness increases, the SMiV platform is expected to incorporate additional features that will facilitate the direct exchange of energy savings between various players, thereby expanding and enhancing the market. For those looking to capitalize on this opportunity, staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream.