Driving the Energy Transition: In Conversation with Goran Krajačić, ESEIA Vice-President
Interview with Goran Krajačić, ESEIA Vice-President and Associate Professor, University of Zagreb, Faculty of Mechanical Engineering and Naval Architecture (UZagreb- FSB), HR
As the global energy landscape undergoes a profound transformation, voices of experience and vision are essential to guide the way forward. In this exclusive interview, we speak with Goran Krajačić, Vice-President of ESEIA and Associate Professor at the University of Zagreb, Faculty of Mechanical Engineering and Naval Architecture (UZagreb-FSB), about the urgent challenges and promising opportunities on the path to 100% renewable energy systems. Drawing from his extensive research, Goran Krajačić offers valuable insights into the role of artificial intelligence, the importance of policy reform, and the bold actions industries and governments must take to accelerate the sustainable energy transition.
ESEIA: Your research is deeply rooted in the push for 100% renewable energy systems, yet many industries still struggle to make the transition. In your experience, what are the most significant barriers preventing large-scale adoption, and what bold actions must industries take to overcome them?
Goran Krajačić: Decades of research have underscored the potential of 100% renewable energy systems, yet widespread adoption remains elusive. A primary obstacle is the persistent “business as usual” mentality within many industries. Adapting to new business models and capitalizing on the opportunities presented by the energy transition requires a fundamental shift, not just within individual sectors, but across the entire economic ecosystem. This necessitates comprehensive education and training at all levels, particularly for designers, managers, installers, and investors, who are pivotal in driving change. Furthermore, it demands a paradigm shift in the perspectives of policymakers, media, non-governmental organizations, and the general public.
Another significant barrier is the challenge of a “just transition.” Many individuals and regions are economically reliant on the fossil fuel industry, and without viable alternatives, they will inevitably resist change. As the adage goes, “you can’t teach an old dog new tricks,” and this resistance has been evident in the EU, where certain industries have struggled to adapt to new products, despite the region’s past leadership in sectors like photovoltaics, electric vehicles, and decarbonized district heating. Compounding this issue is the fossil fuel industry’s investment strategy. Despite claims of investing in clean solutions, their financial records reveal that the majority of their capital remains committed to fossil fuel infrastructure. This continued investment, coupled with aggressive lobbying, hinders public awareness and obstructs the influx of new investments into renewables.
Finally, the prevalence of fossil fuel subsidies distorts market signals, obscuring the true cost of energy. By artificially lowering the price of fossil fuels, these subsidies prevent the market from recognizing the financial attractiveness of renewable energy systems. This lack of transparency is particularly dangerous, as it undermines the economic incentive for transitioning to sustainable energy. Therefore, the crucial action is to disrupt the cycle of fossil fuel profits, lobbying, and reinvestment. We must create a level playing field for renewable energy businesses, establishing a new economic landscape that incentivizes and supports the transition to a sustainable energy future.
ESEIA: The Paris AI Summit has reignited the debate on AI’s role in shaping the future. How do you see AI transforming sustainable energy solutions—from optimizing grid efficiency to managing demand?
Goran Krajačić: Artificial intelligence stands poised to become the cornerstone of the energy transition, a veritable holy grail for the seamless integration of 100% renewable energy systems. The inherent variability of renewable energy sources, coupled with the fluctuating demands of widespread electrification, necessitates a level of sophisticated system management that traditional methods simply cannot provide. Without advanced computing, machine learning, and the predictive capabilities of AI, ensuring the secure planning and operation of these complex systems would be an insurmountable challenge. The confluence of affordable sensors and burgeoning computing power has enabled the widespread integration of information and communication technology (ICT) across diverse sectors, with AI acting as the analytical engine driving progressive planning. Digital twins, virtual replicas of industrial processes, cities, and regions, are being developed, allowing AI to simulate numerous scenarios and optimize system performance for cost-effectiveness and energy efficiency. From central control systems and market trading platforms to peer-to-peer energy exchanges at the grid’s edge, AI will be indispensable for coordinating renewable energy systems at every hierarchical level.
However, this technological marvel is not without its shadow. The burgeoning computational demands of AI itself are contributing to a significant rise in electricity consumption, particularly in developed economies. This presents a critical paradox: while AI is essential for enabling a sustainable energy future, its operational requirements threaten to undermine those very goals. Therefore, a focus on energy-efficient AI algorithms and hardware, along with renewable energy-powered data centers, is crucial to mitigate this potential drawback. The challenge is to harness the immense potential of AI to accelerate the energy transition, while simultaneously mitigating its own energy footprint.
ESEIA: How do you envision the INITIATE and EMERGE projects contributing to the advancement of sustainable energy solutions in urban regions? What specific strategies or innovations from these projects can be applied to help cities and industries progress toward climate neutrality?
Goran Krajačić: The INITIATE project is making a significant impact on advancing sustainable energy solutions in urban regions by transforming how higher education institutions (HEIs) contribute to research and innovation. By fostering collaboration between universities, industries, and policymakers, the project ensures that cities and businesses have the knowledge and tools to move toward climate neutrality. A key part of this effort is creating R&I Labs and an online Knowledge Hub, where best practices, new technologies, and innovative ideas can be shared and developed. After identifying what types of training materials are more adapted to which target group, the Knowledge Hub will be built with interactive MOOCs, as well as lectures and webinars organized by the consortium members with reference to green energy transition and digitalization. Through demonstration projects in Croatia (UNIZAG FSB), Portugal (ISCTE), and North Macedonia (UKIM), INITIATE is testing new organizational schemes and approaches to energy transition. These solutions will not only help achieve results in the pilot sites but also set basis for INITIATE approach in the replication sites.
Additionally, the project focuses on policy recommendations to strengthen research and innovation capabilities, ensuring that sustainable energy initiatives are both practical and scalable. By engaging stakeholders in a co-design approach, INITIATE tailor’s solutions to the specific needs of cities and industries, making the transition to green energy more effective. Looking ahead, the formation of an alliance for the green energy transition will further solidify its long-term impact, providing a lasting framework for collaboration. Through these combined efforts, INITIATE is positioning HEIs as key drivers of change, helping urban regions and industries accelerate their progress toward a more sustainable, climate-neutral future.
The EMERGE project represents a transformative initiative in Africa’s sustainable energy landscape, particularly through its innovative approach to energy system modelling and cross-sector collaboration. Focused on bridging socioeconomic and cultural divides while addressing complex energy challenges, the project employs scenario simulation tools and knowledge-sharing platforms to optimize resource allocation in urban environments. By targeting three strategically significant regions: North western Africa (Morocco), the Niger River basin (Mali/Nigeria), and East Africa (Mozambique), EMERGE integrates technical, economic, and social factors to develop scalable solutions for urban energy transitions. The EMERGE Toolbox’s scenario simulation capabilities enable urban planners to model energy demand patterns, infrastructure requirements, and renewable energy integration under varying socioeconomic and climatic conditions. By incorporating dynamic variables such as population growth rates, industrial activity, and seasonal weather fluctuations, these models provide actionable insights for optimizing grid stability and minimizing carbon footprints in cities.
Even though the project is not focused on the urban environment its contribution to urban sustainability emerges from its holistic integration of technical modelling, cross-sector collaboration, and adaptive governance frameworks. By providing cities with evidence-based tools to navigate renewable energy adoption, the initiative reduces reliance on imported fossil fuels while enhancing grid resilience. The project’s results are focused on its adaptable Toolbox which offers possibilities from evaluating sustainability of different industrial solutions for greening the energy production to evaluating options for zero emission food production and further to providing optimal solution for placing energy storage and renewable energy production on the grid. Future project developments include expanding the Knowledge Base with most recent energy systems data and establishing integration between different Toolbox components. As EMERGE approaches its 2026 conclusion, scaling these innovations and transferring them to other African countries will be crucial to transforming pilot projects into continental standards.
In conclusion, both the INITIATE and EMERGE projects are making significant contributions to the advancement of sustainable energy solutions in urban regions through innovation, collaboration, and evidence-based decision-making. INITIATE strengthens the role of higher education institutions in research and innovation, equipping cities and industries with the knowledge, tools, and policy recommendations needed to transition toward climate neutrality and EMERGE provides urban planners with advanced energy system modelling tools, optimizing resource allocation and grid stability while integrating renewable energy solutions. Together, these projects provide a comprehensive approach to sustainability, combining research-driven strategies with practical solutions to help urban regions and industries accelerate their shift toward a greener, more sustainable future.
ESEIA: With the sustainable energy sector evolving rapidly, what major trends do you predict will dominate the industry in the next decade? How can businesses and governments position themselves now to stay ahead of the curve rather than play catch-up?
Goran Krajačić: Wind and solar energy are currently the most cost-effective sources of electricity. Their substantial installed capacities on the grid are leading to spot market price reductions, sometimes even resulting in negative prices. A similar trend is observed in retail markets, where elevated prices incentivize customers to install solar photovoltaic (PV) systems for self-consumption. In regions with high PV penetration, during periods of abundant sunlight, the operation of conventional power plants becomes largely unnecessary, except for those providing system inertia and flexibility. With the advent of novel storage technologies, vehicle-to-grid capabilities, and smart energy system approaches incorporating a significant share of Power-to-X technologies, traditional energy system and market operations are being disrupted, giving rise to new business opportunities. These include aggregation, energy communities, and innovative models such as advanced Power Purchase Agreements (PPAs) and Contracts for Difference (CfDs). Governments must actively support innovation across all segments of the energy transition, while industries must embrace providing innovative solutions to global markets and attract top talents capable of driving innovation across all sectors.
ESEIA: Government policies and regulatory frameworks play a crucial role in driving the energy transition. In your view, what policy changes or incentives are most urgently needed to accelerate the shift towards sustainable energy? How can policymakers and industry leaders work together more effectively to remove barriers and foster large-scale adoption?
Goran Krajačić: Governments must send clear signals that fossil fuel use is no longer acceptable and establish ambitious targets for renewable energy adoption across all sectors. Pilot projects throughout the EU and globally have demonstrated that energy systems without fossil fuels are both feasible and viable. However, current regulations and laws, codes and standards are designed for the outdated, fossil-fuel-based system, making it difficult to integrate new technologies and services.
It is far easier to enact new legislation and create an economic landscape that fosters the growth of renewable energy businesses than to try to retrofit the old, fossil-fuel-centric structures. We need to dismantle the existing system. Just as smartphones revolutionized mobile communication and our lives, a similarly innovative approach is needed in the design, operation, and regulation of our energy systems.
A swift energy transition hinges on several core principles: democratization, decarbonization, decentralization, diversification, digitalization, and the decoupling of economic growth from fossil fuel reliance. While these principles are firmly rooted in EU policy, member states need to significantly accelerate the transition process. This acceleration can be achieved through several key actions. These include designating “go-to zones” to expedite the deployment of renewable energy sources and the expansion of grid infrastructure. Crucially, this also involves fostering energy communities, promoting energy-sharing initiatives, and establishing clear regulatory frameworks that facilitate the adoption of new markets and technologies, such as electric vehicles and e-fuels. A proactive and unambiguous approach is required to ensure that these new technologies can seamlessly integrate into the evolving energy landscape.
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