In May 2025, the Croatian Parliament adopted the Act on Amendments to the Renewable Energy Sources and High-Efficiency Cogeneration Act, further aligning national legislation with the European Union’s legal framework, particularly Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources. The changes aim to address previously identified implementation gaps, improve the transparency and efficiency of administrative procedures, and strengthen the role of citizens and energy communities in the country’s energy transition. The amendments were published in Official Gazette No. 78/25 and entered into force at the end of May. The amended law explicitly introduces the principles of transparency, objectivity, proportionality, and equal treatment in all procedures related to permits and grid access.
One of the key changes is the legal definition and registration framework for Renewable Energy Communities (RECs), which are now formally recognised as eligible participants in the electricity market. The Ministry responsible for energy is obliged to adopt implementing regulations within six months, including the establishment of a national REC registry and operational mechanisms to support their development. This opens up new opportunities for broader participation by citizens, small and medium-sized enterprises, and local and regional authorities in the production, consumption, and exchange of renewable electricity.
The amended law also introduces a transition from the previous net metering scheme to a net billing model for final customers who generate electricity for self-consumption. This change introduces a more transparent and market-based approach to calculating energy flows—compensating for injected and consumed electricity in monetary value rather than kilowatt-hours. Although the law is in force from May 2025, the practical application of the net billing model is expected to begin on 1 January 2026. Furthermore, final customers who obtained grid connection permits or approvals for self-consumption facilities before 31 December 2025 retain the right to the previous compensation scheme for a period of 10 years from the date of commissioning. Households and small producers will need to adjust to the new framework, and further details will be provided in accompanying bylaws expected in the second half of the year.
These legislative changes mark an important step toward the further decentralisation and democratisation of Croatia’s energy system. They enable citizens and communities to become active participants in the green transition while contributing to the country’s energy independence and the objectives outlined in the National Energy and Climate Plan.