Households represent one of the most interesting sectors, when analyzing Croatia's energy balance. It makes up one of the largest energy consumers with around 75 PJ per year, which is almost 29% of Croatia's final energy demand. Considering this consumption, implementing various mechanisms, which would lead to improvements in energy efficiency of this sector, seems relevant. In order to plan future energy systems, important would be to know future possibilities and needs regarding energy demand of different sectors. Through this paper, long term energy demand projections of Croatian households sector will be shown. Focus of the paper will be on various mechanisms influencing future energy demand scenarios. Important would be to quantify this influence, whether positive or negative, and see which mechanisms would be the most significant. Energy demand projections in this paper are based upon bottom-up approach model which combines and processes a large number of input data. The model will be compared to Croatian National Energy Strategy and certain differences and conclusions will be presented. One of the major conclusions shown in this paper is significant possibilities for energy efficiency improvements and lower energy demand in the future, based on careful and rational energy planning. Different financial, legal and technological mechanisms can lead to significant savings in the households sector which leads to lower GHG emissions and lower Croatian dependence on foreign fossil fuels. (C) 2012 Elsevier Ltd. All rights reserved.