This thesis investigates the potential impact of privatization on Croatia's energy sector, specifically focusing on Hrvatska elektroprivreda (HEP). The study provides a comprehensive analysis of the privatization process, exploring its economic, social, and regulatory implications. It compares HEP's current state as a state-owned enterprise with the experiences of EU countries that have undergone similar transitions. The thesis identifies the potential benefits of privatization, such as increased efficiency, market competitiveness, and foreign investment, while also considering the risks, including loss of state control over strategic assets and potential social consequences like increased energy prices for consumers. The study employs both quantitative and qualitative research methods, analyzing HEP's financial performance and market position, as well as examining relevant legal and regulatory frameworks. By comparing HEP's situation with those of privatized energy companies in the EU, the research identifies best practices and potential pitfalls. The thesis concludes that while privatization could lead to significant economic benefits for Croatia, careful consideration of regulatory safeguards and strategic interests is essential to ensure a balanced outcome that protects consumer interests and maintains energy security.