Croatia set to become leading producer of geothermal energy

The bidding process for six exploration blocks was held from 28 December 2022 to 1 June 2023.

The agency received 16 bids from 11 bidders for licences for the exploration of geothermal waters.

The projects envisage the establishment of 21 geothermal wells, and the value of the exploration works is estimated at €191.7 million.

The total value of the investments will reach €400 million.

Economy and Sustainable Development Minister Davor Filipovic said that activation of geothermal potential is of extreme importance, as it would lead to an increase in the generation of electricity in Croatia.

"Investing both in LNG and in activation of geothermal potential means investing in national security. Energy, food and water are prerequisites for growth, development and survival. We will have an additional 600,000 megawatts of green electricity. This is the path towards renewables and we will provide over 200,000 households with energy," Filipovic said.

The €400 million investments will also give an additional boost to Croatia's economy, he said.

The agency's management board president, Marijan Krpan, expressed satisfaction with the results of the tender, adding that the companies that won the tender have the technological know-how and sufficient financial means to implement the project in its entirety.

The exploration itself will take five years, and after that, contracts on production will be in effect for 25 years.

The successful bidders will first conduct seismic works and then drill geothermal wells.