The adoption of European goals and strategies are affecting the growth of energy production from renewable sources in Croatia, and since 2011, the production of renewable energy in Croatia started to grow significantly. This study provides detailed information about usage of biomass and pellets in the system of renewable energy sources, with an emphasis on the European Union and Croatia. The main objective of this study is to demonstrate the energy potential of agriculture residues in Croatia, namely those remaining from the most important field crops and the pruning residues of fruit crops, as well as those of grapevines and olive trees. Also, we predict disposal of this biomass in one of the most frequently used technology - pelletizing. In 2014, in comparison with 2010, pellet production in Croatia increased by more than three times. While used biomass is mainly from forest residues, according to the calculations in this study, after harvest and pruning, the amount of left remains is 3.6 to 5.6 times higher than the total amount of installed capacity for the production of pellets in Croatia. For field crop residues we have considered the percentage of biomass that needs to be returned into the soil to maintain soil fertility, and thus developed two scenarios based on 50% and 30% of the biomass available for energy production. The computed total energy potential of crop residues for producing heat energy or cogeneration, including losses resulting from transmission and distribution of energy, would be from 3.4 to 5.3 TWh, depending on the scenario. Total energy from scenario 2 would be enough to supply almost 324,000 households annually. With reference to energy production in Croatia in 2014, agricultural biomass could occupy a share of about 10% of the total production of primary energy. Furthermore, the import of fossil fuels could be significantly reduced.