Croatia’s employers have asked the government to establish a national electricity-cost support programme for energy-intensive manufacturers, as factory investment faces pressure from higher end-user costs. The Croatian Employers’ Association (HUP) outlined its request on 6 November 2026, calling for support under the EU’s Clean Industrial Deal State Aid Framework (CISAF).
HUP said electricity prices for Croatian companies, adjusted for purchasing power, exceeded the EU average by 14.6% for small enterprises, 18.1% for medium-sized companies and 20.5% for large companies. The comparisons concern end-user electricity costs, not differences in wholesale spot prices.
No national CISAF programme, budget or list of eligible beneficiaries has been announced. HUP said persistent cost disadvantages were constraining factory investment in Croatia.
Existing aid targets indirect emissions costs
The government has a separate scheme authorised by the European Commission, with a total value of 60 million euros for 2025-2030. It covers indirect emissions-trading costs embedded in electricity prices for qualifying energy-intensive businesses exposed to international competition.
The scheme can compensate up to 80% of eligible indirect costs, subject to conditions linked to energy efficiency, low-carbon power or emissions-reduction investments. It does not reimburse an industrial buyer’s entire electricity bill.
HUP said 10 million euros had been earmarked for costs incurred in 2025, with payments envisaged by 31 March 2027. The association is seeking rapid implementation of this approved mechanism alongside a separate national programme addressing the broader electricity-cost disadvantage. Approval of the existing scheme does not mean the additional programme has been adopted.
Investment and eligibility remain open
The cost pressure is concentrated in sectors where electricity is a substantial production input. HUP estimates energy accounts for a share of expenditure in metal processing 3.4 times the Croatian economy-wide average, and about twice the average in chemicals.
Manufacturers producing competing goods elsewhere in Europe may be able to invest more aggressively if they face lower recurring electricity costs. Support tied to demonstrable investment in efficiency, electrified processes, renewable electricity, storage or flexible demand could pair operating-cost relief with investment to reduce longer-term exposure to power prices. Its effect would depend on the final eligibility and compliance rules.
HUP cited approved industrial energy-support schemes in Germany, Bulgaria and Slovenia. For manufacturers comparing Croatia with neighbouring EU locations, access to state aid may count alongside labour costs, logistics, financing and the availability of low-carbon electricity.
The association also cited a 4.8% decline in Croatian manufacturing employment over the first nine months of 2026. The figure indicates a weak industry backdrop but does not establish electricity prices as the sole cause of job losses.
Any new subsidies would have fiscal costs and need safeguards against overcompensation, unequal treatment and support for commercially unviable projects. Investors and industrial buyers will look for a formal government proposal setting out the programme’s size, qualifying sectors, permissible discounts and investment obligations; until then, the request does not change the electricity price Croatian factories pay.
