Croatia to invest €35.3 million in geothermal heating in four towns
Financing deal signed on 9 October 2026; €30 million are EU grants and systems are planned to operate by 2030.
Croatia will invest €35.3 million to develop geothermal heating systems in four towns, stepping up efforts to use domestic renewable energy for homes and public buildings. The government says most of the funding comes from the European Union.
On 9 October 2026 Croatia's Ministry of Economy signed a financing agreement to build geothermal projects in Velika Gorica, Osijek, Vinkovci and Zaprešić. Of the total package, €30 million are non‑repayable grants provided through the European Regional Development Fund.
Construction from 2028, operation planned for 2030
Authorities expect construction work to begin in 2028 and for the new heating systems to be commissioned in 2030. In Vinkovci officials are exploring a central heating network that could serve about 1,700 households, while in Velika Gorica geothermal energy could cover heating needs for more than 60 percent of residents.
Prime Minister Andrej Plenković said using domestic energy sources is important for reducing dependence on imported fuels and for securing more stable heating costs.
The Ministry of Economy highlighted that the geothermal gradient in the Croatian sector of the Pannonian Basin is particularly high — about 60 percent above the European average — which boosts the country's potential for geothermal projects.
This new investment continues earlier exploration work funded with €50.8 million; combined, the two funding phases exceed €86 million. Croatian authorities also signalled plans for further geothermal projects in other towns, including Karlovac, Virovitica, Križevci, Bjelovar and Lipik, as part of a gradual shift from natural gas and other fossil fuels to domestic renewables.
Photo: press material from the event
