Energy security, policy and technology in South East Europe: Presenting and applying an energy security index to Croatia

Abstract

During the last decade a number of long-held tenets of the energy sector have been rewritten. With the rise of new technologies and the help of policies favouring RES (renewable energy sources) a transformation of our understanding of the energy system and its possibilities has encouraged dramatic changes in the World's energy landscape. As some importers became exporters, countries long-defined as significant energy exporters became centres of demand growth. In these turbulent times, it is the awareness of the dynamics underpinning energy markets that is crucial for both decision-makers and investors to form informed opinions on how to reconcile a string of technical, environmental, economic and social factors in order to provide for best solutions regarding country specifics and demands. The right combination of policies and technologies could fuel economic growth, whilst still providing secure and affordable energy in line with low-carbon goals. Those that might successfully anticipate energy developments can derive a significant advantage on the market, while those that fail to recognise the importance of new movements risk making poor policy and investment decisions. In this light and following the accession of Croatia in the European Union, a number of questions are raised regarding the country's energy sector legal framework and development policy and their ability to cope with the demands faced. Taking Croatia as a practical example, the impact of different development strategies is considered through the application of a novel approach suggested by the paper. This study presents an overview aimed to help clarify some of the aspects behind forming a successful framework capable of making the right decisions for the future, today.