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Czech Republic

MARKET STRUCTURE

 
The Czech Republic’s legislative framework in relation to renewable energy sources has been strengthened by a new RES Act, adopted in 2005, and a Government Order regulating the minimum amount of biofuels or other RES fuels that must be available for motor fuel purposes. Targets for increasing RES in total primary energy consumption have been set at national level. The use of biomass in particular is likely to increase as a result of the new legislation.

KEY SUPPORT SCHEMES

 
In order to stimulate the growth of RES-E, the Czech Republic has decided on the following measures:

• A feed-in system for RES-E and cogeneration, which was established in 2000.
• A new RES Act, adopted in 2005, extending this system by offering a choice between a FIT (a guaranteed price) or a ‘green bonus’ (an amount paid on top of the market price). Moreover, the FIT is index-linked whereby an annual increase of at least 2 per cent is guaranteed.

Table I.5: Key Support Schemes in the Czech Republic

* ERO can not reduce this by more than 5 each year Note: Exchange rate 1€ = 27,97 CZK

FUTURE TARGETS

A 15–16 per cent share of RES in total primary energy consumption by 2030 has been set as a target at national level. For RES-E, the target to be achieved is 8 per cent in 2010. The Czech Republic’s RES percentage of total primary energy consumption is currently approximately 3 per cent. A very gradual increase can be observed in the RES-E share of gross electricity consumption (3.8 per cent in 1997, 4.1 per cent in 2004).