Czech law to end renewable energy subsidies gets one step closer to reality

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

A proposed law to end subsidies for the renewable energy industry in the Czech Republic has gone one step further toward coming into effect, gaining approval in the country's lower house of parliament.

If the draft legislation is approved by the Senate and signed by the president, as is necessary for it to be passed into law, any renewable energy generation facility that begins operation after 31 December 2013 will no longer be eligible for the Feed in Tariff (FiT) or any other support.

The law will also set a ceiling price of CZK495 (US$25.27) per MWh to tackle rising electricity bills. The current price is CZK583 (US$30.1) per MWh.

Subsidised electricity is considered to have inflated energy prices in the country and proponents of the law hope that the end of subsidies will mean falling energy prices for consumers.

A further amendment to the law, made since the end of July when the proposal was first put before parliament, will require owners of facilities to be licensed. The aim is to tackle corruption, with owners of power plants in the Czech Republic currently able to receive subsidies while remaining largely anonymous.

The domestic political situation in the Czech Republic has recently been turbulent, with prime minister JIri Rusnok and his entire cabinet resigning on 13 August but remaining as caretaker government until an election can be called. The election, the second in three years, is expected to take place within 60 days of a motion to dissolve parliament, a motion which will to be taken on 20 August.

A ‘solar tax’ levied at a rate of 26% and applicable to solar power plants built in 2009 and 2010 will continue to be levied beyond 2013, scrapping previous plans to cut the rate to 10% for plants built in 2010. At present power station owners in the Czech Republic also have to hold a valid business licence for producing electricity.

CZEPHO, the Czech PV industry association, argued that the new legislation would be impossible to implement without putting the government in line to face expensive court actions brought by owners of renewable energy facilities who thought their investments were guaranteed a degree of certainty.

However it is unlikely this would mean a complete end to the building of new solar power capacity in the Czech Republic even if the new legislation came into effect, according to industry commentators in the country. While electricity generation would no longer be a profit-making industry, building renewable energy facilities would still save money on energy costs that could still offer returns.

Rather, the law would mean that electricity costs could be saved and that despite the lack of subsidy, the electricity produced by photovoltaic installations could potentially still give a return on investment around halfway through the expected 30-year lifespan of a PV plant.

11 May 2021
Join this Talesun Solar webinar focused on providing an insight into the company’s next-generation series of large-area, high-efficiency PERC (Passivated Emitter Rear Cell) modules. These are available in both monofacial (‘BiStar’) and bifacial (‘BiPro’) formats, using 182mm half-cut cells in 144 and 156 cell configurations and provide up to 590Wp performance with efficiencies of up to 21.2%.
11 May 2021
Green Hydrogen: always the future never the now? Join us on 11-12 & 18-19 May for a fresh look at what’s fast becoming a reality. Governments across the world have put hydrogen at the centre of their decarbonisation plans with billions of dollars allocated to stimulating the market and whilst individual strategies will differ, the theme is the same: green hydrogen is the fuel of the future. Its role goes beyond energy use and there is already an active off-take market. From the perspective of renewable generators, hydrogen can play a pivotal role in enabling unsubsidised projects to work in a low power price environment and provide another business model in areas where the grid is congested. Hydrogen could also be the driver of a new wave of renewable installations as countries’ hydrogen plans hinge on new capacity being available.
26 May 2021
Tara Doyle and Tristan Erion-Lorico of PV Evolution Labs (PVEL), will share this year’s top-performing modules and discuss key findings from PVEL’s PQP testing. Join us to explore which find out which new Top Performer category can affect project value by more than $100,000 – and which test resulted in >20% degradation.
15 June 2021
Looking at the drivers and dynamics of utility scale solar in the UK over the next five years. This event will consider the immediate challenges as we enter the build phase in the UK market where we could see as much as 3GW deployed in 2021 alone! What developments will continue the growth of 100MW+ sites and what impact will government policy have on the rate of deployment in the UK? Join leading developers and manufacturers shaping the direction of one of Europe’s most active markets and hear from speakers with a history of influencing innovation and change.
6 July 2021
Explore in depth the opportunities of the different countries via case studies, business and financial models that will foster growth in the region with particular focus on Thailand, Philippines, Indonesia, Taiwan, Korea, Cambodia, Singapore, Malaysia & Vietnam.
13 July 2021
Energy Next is a new industry exhibition focusing on the latest renewable energy and energy efficiency technology, which will be held for the first time in 2021 in Sydney, Australia alongside the Clean Energy Council’s Australian Clean Energy Summit, the peak gathering of leaders driving Australia's energy transformation. Organised by the same people behind Australia’s largest clean energy event, All-Energy Australia, Energy Next will give visitors two days of access to key suppliers in the industry, free-to-attend professional development and industry workshops, and networking opportunities to better understand clean energy issues and solutions and learn about the latest developments in this transformational, dynamic sector.

Read Next

May 5, 2021
Europe’s solar industry has lauded the inclusion of a commitment to "re-ignite" Europe's solar manufacturing sector within the European Commission’s refreshed industrial strategy.
May 5, 2021
A round-up of news from the US solar sector, including updates from the Department of Energy, private equity firm American Securities, and Indiana developer Hoosier.
May 5, 2021
New solar and wind assets in the US are now cheaper to operate than nearly 80% of existing coal-fired generators in the country and could replace the asset class while delivering numerous benefits to consumers, a report has found.
May 5, 2021
Governments worldwide must ensure that there are sufficient raw materials available to solar and energy storage developers to safeguard the energy transition.
May 5, 2021
The Australian Renewable Energy Agency (ARENA) has selected three commercial-scale green hydrogen projects that will share in AU$103 million (US$79.7 million) of funding to support their development.
May 5, 2021
SHV Energy, a Netherlands-based liquified petroleum gas (LPG) distributor, has acquired a majority stake in Indian solar developer SunSource Energy.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021