Croatia has formally transposed the EU framework for Renewable Energy Communities (RECs) into national legislation through the Law on Renewable Energy Sources and the Electricity Market Act. This represents an important milestone. However, experience on the ground shows that translating this legal progress into functioning energy communities remains a challenge. In practice, real-life projects continue to face a range of regulatory and administrative obstacles.
Valuable insights into these challenges have emerged through the ISLET project, particularly from activities on the island of Cres, one of ISLET’s pilot site, and later on Korčula as a test site. While RECs are now recognised in law, the practical framework needed for their day-to-day operation is still complex and difficult to navigate.
A central issue is energy sharing. Although the concept is formally acknowledged in legislation, concrete procedures, tariff arrangements, and technical conditions are largely undefined, leaving communities unsure of how energy sharing can actually take place. This uncertainty discourages investment, complicates project planning, and makes it difficult to develop sustainable business models.
Administrative procedures further complicate the picture. Despite recent efforts to simplify processes, the steps required to establish and operate an energy community remain unclear. The lack of detailed by-laws and practical guidance creates confusion not only for citizens and local authorities, but also for key actors such as system operators and energy suppliers who are essential to making these initiatives work.
Financial and market conditions also play an important role. Unlike in several more mature EU markets, Croatia does not yet offer dedicated support schemes or incentives tailored to renewable energy communities. Without such mechanisms, it is difficult for RECs to expand beyond small-scale initiatives or to ensure their long-term viability.
These constraints became particularly visible during the Cres pilot. Given the limitations of the existing regulatory framework, project activities shifted away from a fully operational energy-sharing model. Instead, emphasis was placed on collective self-consumption and cooperative-based structures as interim solutions that could function within current legal boundaries.
Overall, these experiences reveal a gap between legislative ambition and practical implementation. Closing this gap will require more than formal recognition. Clear operational rules, simpler administrative procedures, and supportive financial frameworks are all needed if renewable energy communities are to move from concept to reality. Without such measures, their role in driving the local energy transition in Croatia is likely to remain limited.
These challenges underline the importance of continued exchange, peer learning, and practical guidance. Through the ISLET project, a wide range of resources has been developed to support local authorities and citizens interested in RECs. Publications, examples from pilot sites, and thematic insights are available through the ISLET Permanent Exchange Platform.
The article was provided by Pokret Otoka / Island Movement, offering first-hand insight from work carried out on the ground in Croatia.
