Czech Republic Clears RE Aid Law

Renewable Energy Boom Expected In Czech Republic After Country’s Parliament Clears Aid Law; RE Auctions On The Anvil Too

Czech Republic Clears RE Aid Law

Czech Republic has passed a law that will promote renewable energy in the country with government support. Pictured is a solar carport of Czech utility CEZ Group near Dukovany Nuclear Power Plant. (Photo Credit: CEZ, a.s.)

  • Czech Republic’s Parliament has cleared a law supporting the development of renewable energy projects through aid
  • It will also support competitive auction of new renewable energy capacity
  • Komora OZE hails the law, but said more needs to be done to truly end coal power use, and support cheaper and cleaner energy sources

The Chamber of Deputies in the Czech Republic has approved a law that the industry association Komora obnovitelných zdrojů energie (Komora OZE) or the Chamber of Renewable Energy Sources believes is an important prerequisite for decarbonization, democratization and decentralization of energy in the country.

The law will set in motion a renewable energy aid framework, sure to give a boost to the ongoing development of these technologies in the Czech Republic, Štěpán Chalupa, Chairman of Komora OZE, pointed out, “The Czechia has an unprecedented amount of money at its disposal for the development of clean energy, tens of billions of crowns from European green funds, and their drawing is just starting.”

Czech Republic aims to grow the share of renewables in its total energy consumption to at least 29% by 2030, growing from 16.2% at present, driven mainly by the growing interest of businesses and residential segment in these cheaper sources of clean energy generation. Previously, the target was 20.8%, and was raised to 22% (see Czech Republic Increases RE Target For 2030).

A Reuters report shared that the Czech Parliament’s approval allows for public aid at levels allowing the internal rate of return (IRR) for existing renewable installations at 8.4% to 10.6%. It also allows for auction of new capacity, it added.

Komora OZE refers to a 2020 study by the Academy of Sciences to claim solar power plants on suitable buildings in the country hold the potential to cover more than a quarter of electricity consumption in the Czech Republic, and wind power plants here can cover almost 1/3rd of it.

However, approval of the law is just the 1st step as the industry body wants the government to adopt a clear deadline to end coal power generation, stop exporting fossil fueled electricity, and tax every ton of CO2 released into the atmosphere. Chalupa added, “The new government should turn renewable sources into a new Plan A for the Czech energy sector. Only in this way can it guarantee consumers acceptable electricity prices in the future.”

In May 2021, the country’s public utility CEZ announced its plans to go carbon neutral by 2050 under its Vision 2030 strategy. In the interim, it would lower its emissions by 55% compared to 2019 by 2030. By 2025, it wants to have 1.5 GW of renewable energy installed capacity, and grow it to 6 GW by 2030, while also retaining nuclear power in its portfolio.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

Latest Videos

Loading...
Subscribe To Our Taiyang NewsLetter 
Enter your email to receive our daily solar sector updates.