The Importance of Electricity Sector in Croatia: A Look at the New Energy Development Strategy

Abstract:

Taking into account the fact that energy is crucial for the development of human civilization, we can argue that electricity, as it’s most flexible and commercial form, represents today an indispensable basis for the material and social activities as well as living standards. The above mentioned induces the existence of interconnection between the electricity sector and all other sectors of the economy where the development of energy and the overall economy cannot be viewed as two separate processes. This becomes most evident during the process of electricity market liberalization, i.e., abandoning monopoly as a model of market organization and switching to the competitive markets in order to create a positive environment for all participants in the market competition, not just for a single provider of electricity service. Even more in those countries where electricity represents an important input for their economic growth like in Croatia. In the previous (old) Energy Development Strategy (from 2009) one of the priorities was the (continuous) development of electricity as an industry that contributes to GDP through increased employment, investment and exports and construction of new generation capacities. In general, however, this Strategy was characterized as a formal document that was not actually (being) implemented. In the age of digital economy, economic processes cannot be imagined withut the use of electricity. Therefore, the latest Energy Development Strategy (adopted in 2020) represents a much-needed revision of the former strategy, it is in line with the EU Directives and the proclaimed objectives of decarbonisation and the transition to a low-carbon economy. Hopefully, this time the new strategy will fulfill the aim of ensuring Croatia’s energy / electricity independence.