This paper investigates the long run relationship between the impact of electricity consumption on the economic growth. The aim is to determine whether there is a long run cointegration and long run balance between the variables. Indicators of energy efficiency and the level of technological development enable us for the assessment of energy and the development of strategies implementation. The increased electricity consumption in the Republic of Croatia has a positive impact on the development of the electricity sector. The investments in the electricity sector were most intensive during the energy transition in the Republic of Croatia. Renewable energy technologies provide an opportunity to develop new industry. Energy intensity is one of the indicators of energy efficiency, and the high energy intensity of electricity indicates the impact of electricity consumption on the economic growth. The Republic of Croatia is making efforts to increase its energy efficiency, but this may limit its economic growth, in effect. Investmensts in new technologies, optimization and improvement of production processes achieve energy savings. The strong relationship between electricity consumption and economic growth means that the country is in the development phase and that the reasons for its high energy intensity of electricity are linked to an insufficient level of technological development. Idling in technological processes, obsolete equipment and machines, reactive energy and inefficient energy transformation in industrial production create an increase in production costs and load on the electricity network. The Republic of Croatia is one of the developed countries, but more investment is needed/necessary to reach the rank of the leading developed countries.