Croatia is moving forward with its largest grid-scale battery energy storage project thanks to a new investment from the European Bank for Reconstruction and Development (EBRD), the bank announced. The EBRD is investing up to €16.8 million in IE-Energy Projekt, a joint-stock company established specifically to develop a cutting-edge battery storage system and virtual power plant near Šibenik. The project also draws matching support from Raiffeisen Mandatory and Voluntary Pension Funds, as well as an EU Modernisation Fund grant.
This development will add as much as 60 megawatts of battery storage to Croatia’s power grid, enabling real-time flexing of electricity supply and demand. By leveraging a virtual power plant platform, the initiative will help ease the integration of renewable sources like wind and solar—key as Croatia aims to transition away from fossil fuels and toward a greener energy mix.
According to EBRD’s Central Europe Director, Miljan Ždrale, the investment “marks a milestone in Croatia’s green transition,” supporting next-generation energy technology while boosting the grid’s resilience. The battery storage system is expected to play a vital role in stabilizing the national electricity system by balancing fluctuating renewable output.
The project is part of the EBRD’s broader effort to advance renewable and smart grid solutions across the region. Since entering Croatia, the EBRD has invested over €5 billion in more than 270 projects, prioritizing initiatives that promote decarbonization, energy independence, and public sector modernization.
