Overview
Energy sharing has only recently gained legal recognition in Croatia. The framework for Citizens’ Energy Communities (Energetske zajednice građana, CECs) and Renewable Energy Communities (Zajednice obnovljive energije, RECs) was introduced in 2021 through the Electricity Market Act and the Act on Renewable Energy Sources and High-Efficiency Cogeneration, respectively. These definitions align with the EU Electricity Market Directive (2019/944) and the Renewable Energy Directive (2018/2001), providing a legal basis for collective self-consumption and local energy initiatives.
Implementation, however, remains in its early stages. CECs are typically established as non-profit associations, since the cooperative form is not permitted for this category. Their purpose is primarily environmental, economic, and social rather than profit-driven. RECs offer greater flexibility in legal form, allowing cooperatives, associations, or other entities, and may include a broader mix of participants, such as individuals, SMEs, and local authorities. While no REC has yet been formally registered, the framework provides the flexibility for different legal arrangements, and further by-laws are expected to clarify registration procedures.
Prosumers are well established under Croatian law. Yet, administrative and economic challenges persist, and the transition from net metering to net billing, effective 1 January 2026, is expected to affect the operating conditions for small-scale renewable producers.
Summary of regulations
Croatia’s regulatory framework distinguishes between two types of energy communities:
- CECs are defined in Article 3, point 21 of the Electricity Market Act. A CEC is a legal entity based on voluntary and open participation, effectively controlled by its members who may be natural persons, local authorities, or small enterprises and primarily aims to deliver environmental, economic, or social benefits to its members or the local community. CECs may engage in electricity generation (including from renewables), supply, consumption, aggregation, storage, energy efficiency services, and electric vehicle charging.
- RECs are defined in Article 4, point 28 of the Act on Renewable Energy Sources and High-Efficiency Cogeneration. A REC is a legal person established on open and voluntary participation, independent, and under the effective control of members located near the renewable energy projects it owns or develops. Members may include natural persons, SMEs, or local and regional self-government units. Its primary objective is to provide environmental, economic, or social benefits to its members or the area where it operates, rather than profit.
Prosumers are regulated under the RES Act as final customers who generate electricity primarily for their own consumption and may store or feed surplus electricity into the grid.
Competent authorities
- HEP ODS d.o.o. (Distribution System Operator)
- HOPS (Transmission System Operator)
- Hrvatska energetska regulatorna agencija
- (HERA) Hrvatski operator tržišta električne energije (HROTE)
- Environmental Protection and Energy Efficiency Fund (FZOEU)
- Hrvatska banka za obnovu i razvitak (HBOR)
