Croatia is stepping up its efforts to support the energy transition among public utilities. Through the Environmental Protection and Energy Efficiency Fund (FZOEU), the country is channelling EU resources to help regional water utilities and municipal waste operators invest in solar power. Under the MF-2025-1-1 programme, €70 million is set aside for water utilities installing photovoltaic systems, with a further €10 million available to waste management companies.
Rising energy costs
Many municipal utilities now find themselves under mounting pressure as Croatia phases out electricity subsidies. With support declining, energy costs are making up an ever-larger share of operating expenses. Đuro Zmijarevic, Head of the Water Use Department at Hrvatske vode, Croatia’s water management authority, highlighted the challenge in a panel at the Green Energy Fair in Zagreb. “At public water utilities, electricity costs currently account for between 15 and 40 percent of operating expenses,” he noted. “But that is only because electricity prices remain regulated. If utilities had to pay market rates, the share would jump to 40 to 80 percent of total costs,” Zmijarevic explained. “Without in-house photovoltaic generation, the system would not be sustainable in the long run,” he warned.
Projects eligible for up to €3 million in funding
Aleksandar Halavanja, Head of Energy Management at FZOEU, outlined the funding terms. Individual projects can receive grants ranging from €10,000 to €3 million. A single applicant can secure up to €5.5 million in total for multiple projects. “Applications can be submitted until 30 September 2026 or until the funds are exhausted,” explained Aleksandar Halavanja.
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According to the programme guidelines, both integrated and non-integrated grid-connected photovoltaic systems, as well as battery storage systems for water utilities, are eligible for funding. Project monitoring, site supervision and project management, including information and marketing measures, can also be subsidised. By early November last year, only €6 million of the total €80 million available had been committed, Halavanja reported. “So there is still room,” he emphasised, encouraging further applications.
Lowering the barriers
To make the process easier for applicants, the authority has decided that not all documents must be submitted upfront. Applications will not be rejected if documentation is incomplete, Halavanja said. “If a document is missing, we allow it to be submitted at a later stage,” confirmed the Fund representative.
The programme forms part of the Repower EU initiative and was launched in response to the energy crisis. Its aim is to increase the share of renewables in Croatia’s final energy consumption by 2030 and to reduce greenhouse gas emissions. Project applications can be submitted by registered mail to the FZOEU in Zagreb.
Further details on the programme, funding terms and required documents are available on the FZOEU website.