The agreement envisages a EUR20 million loan with favourable interest from the German KfW banking group and a EUR1.5 million deed of donation from the German government for the financing of the project's implementation and care measures.
The agreement is a framework deal based on which individual contracts will be signed with loan recipients. Its implementation will be financed by the Croatian Bank for Reconstruction and Development, said Suker.
He said one of the government's goals was to increase the share of renewable energy sources in Croatia's energy balance from the current 0.5% to 4.5% by 2010. He announced investments in wind power plants.
Peters said energy would be one of Germany's priorities during its rotating EU presidency.
According to figures from the German Embassy in Zagreb, since 2000 Germany has provided EUR67.5 million in loans with favourable interest as part of financial cooperation with Croatia, and has granted EUR24.5 million, mainly through subventions.
Since 1992, Germany has also provided EUR63 million as part of technical cooperation, said the same source.
Germany accounts for 26 per cent of all funds Croatia receives from the EU.