A current topic of great discussion worldwide concerns environmental change and renewable energy production within individual countries. Over the years, there has been an effort to reduce supply from other countries through the development of inexhaustible domestic sources such as sunlight, wind, water cycle, tides, waves and geothermal heat.
Renewable energy and focus on the Czech Republic
Globally, there are considerable disparities in renewable energy production between countries, determined by each country’s available resources. In 2021, the Czech Republic produced 14% renewable energy, ranking 147th out of 224 countries worldwide and 26th out of 27 European countries for renewable energy production. Most of it comes from non-renewable sources, mainly coal and nuclear energy, making the country the third largest emitter of greenhouse gases in the European Union.
| 2019 | 2020 | 2021 | |
| Coal, gas and steam plants | 63,7% | 62,49% | 61,38% |
| Nuclear power plants | 20,97% | 21,65% | 22,18% |
| Photovoltaic systems | 9,99% | 10,36% | 10,69% |
| Water installations | 5,34% | 5,5% | 5,75% |
| Wind power plants | 1,66% | 1,71% | 1,75% |
Despite some efforts to reduce emissions over the years, the country remains behind in this respect. Although there has been a slight decrease in the use of coal and gas and steam power plants, these still remain the main resources used. However, there has been an increase in nuclear energy thanks to the Dukovany and Temelin power plants, which now account for almost a quarter of the country’s installed capacity. At the same time as the decommissioning of coal-fired power plants, there has been an increase in the use of renewable energy, especially photovoltaic and hydroelectric. Wind energy is also present, although to a lesser extent due to climatic conditions, but the government has plans to increase its development in order to increase clean energy production at lower costs.
In order to reach the European Union’s 2030 targets for renewable energy production, the Czech Republic sets a 35% share as a goal. Given the current low percentage, the Ministry of Industry and Trade has announced its intention to purchase it through auctions, thus contributing to the decarbonisation of the electricity sector and reducing dependence on Russian natural gas in the immediate future.
European policies
In recent decades, there have been numerous initiatives and policies adopted on green energy and the fight against climate change. Among them, some important international events can be mentioned:
– COP 11 Kyoto 1997, whose main goal was to reduce CO2 emissions by 5.2% by 2008 through the implementation of mechanisms such as emissions trading, Joint Implementation and Clean Development Mechanisms.
– COP 21 Paris 2015, focused on actions needed to limit climate change by providing financial, technical and capacity support to the most vulnerable countries.
– COP 27 Glasgow 2021 during which the link between climate change and deforestation was emphasised, with the aim of reducing levels by 2050.
– COP 28 Dubai 2023 characterised by the urgency of accelerating climate action through the transition from fossil fuels to renewables such as wind and solar energy.
In May 2022, to address the energy challenges arising from the conflict between Russia and Ukraine, the European Union presented the REPowerUE Plan, whose actions cover:
- Reducing dependence on Russian fossil resources through agreements with third countries to import hydrogen from Namibia, Egypt and Kazakhstan and renewable natural gas from Egypt and Israel;
- investments in the collective purchase of liquefied natural gas and increasing gas storage to ensure a minimum level of 80% capacity;
- energy savings of up to 20% of consumption, sharing energy with neighbouring countries to limit future losses in the event of supply disruptions;
- introduction of a cap on gas and oil prices below pre-Russian invasion levels to ensure greater stability within the EU;
- doubling renewable energy production, generating 39% of energy from sustainable sources, particularly solar and wind power.
RRF, allocated funds and targets
In line with European regulations, through the RRF and the REPowerEU plan, the Czech Republic has initiated a number of projects concerning the installation of renewable energy sources, the modernisation of the electricity grid and, for the most part, large-scale investment programmes aimed at increasing the energy efficiency of residential and public buildings.
The transition to decarbonisation is the focus of attention in the Czech Republic, despite the fact that it requires significant efforts, sacrifices and difficulties at various levels.
According to Industry and Trade Minister Jozef Síkela, ‘By 2030, we expect electricity consumption to increase by 10 per cent, but at the same time we expect a significant reduction in the generation and use of electricity from coal. These changes will mainly be offset by an increase in electricity generation from renewable sources. In addition, we will stop exporting energy from coal, as it will become less profitable due to the price of emission permits’.
As also reiterated by Environment Minister Petr Hladík, in order to reach the European production level of 30 per cent, the Czech Republic will have to quintuple the production capacities of wind and photovoltaic power plants also through government subsidies.
Wind power plants
Funding can cover a maximum of 80 per cent of the investment needed to build the facilities, up to EUR 15 million per project.
Applicants must have a licence for electricity production, recognised by the Energy Regulatory Office (ERÚ). The application for the grant is only possible during a specific period, from 31 March 2024 to 30 June 2024. The choice of a restricted period, together with the high value of the available funds, gives a further sign of the commitment and concreteness of the project.
Photovoltaic systems
On the subject of solar energy, the subsidies made available to small, medium and large companies distinguish between those with a capacity of between 10 kW and 5 MW with self-consumption (at least 80 per cent) and those with a capacity of more than 1 MWP.
For the former, the government offers financial support of up to 50 per cent. However, the exact amount of support depends on specific, individually defined parameters. The application can be submitted during the period from 3 January 2024 to 31 October 2024. The following are eligible: stand-alone projects with only one transfer point to the distribution or transmission system, combined projects with more than one transfer point and energy storage systems.
For photovoltaic plants with an output of more than 1 MWP, the subsidy is similar, but with the possibility of selling any surplus energy produced. The application for financial support for this type of installation can be submitted from 15 May 2024 to 10 September 2024.
Another step in the advancement of solar energy production could be the forthcoming authorisation of agrovoltaics, a hybrid system that allows the combination of land cultivation with the construction of photovoltaic systems. According to a bill currently under discussion, this practice will be limited to certain types of crops that are not damaged by the presence of solar panels and, indeed, can benefit from them.
However, while evaluating the benefits of these incentives and the investment opportunities, it is not possible to ignore the challenges that may emerge, given the uncertainties and rapid changes in the technological environment. Two examples illustrate this situation.
In the past year, several Czech companies active in the solar energy sector had to temporarily stop operating some plants to avoid overloading the electricity grid. This underlines the importance of infrastructural measures by the government, which has already allocated funds for grid reinforcement in order to ensure the proper functioning of the energy market.
A study conducted by the Faculty of Science at the University of Prague revealed an error in the assessment of the service life of a series of photovoltaic systems built between 2009 and 2010. Originally planned for a minimum lifespan of 20 years, these systems appear to have reached the end of their operational life after only 12 years of operation. This situation raises questions about the current understanding of solar technology and highlights the importance of accurately assessing the costs associated with investments in this sector. This is crucial in order to maximise the benefits in the short term, thus avoiding the risk of their nullification in the future.
In conclusion, the Czech Republic is embarking on an ambitious path towards a more sustainable energy future based on renewable sources. Despite starting from a difficult position, the country has set high targets that demonstrate its commitment to energy independence. The support and funding provided by the European Union play a crucial role in the transition to renewable energy sources, but this, as mentioned, can only be achieved through a series of coordinated and synergetic efforts at all levels, from institutions to private individuals.
Sources: https://www.enelgreenpower.com/, https://www.camic.cz/ , https://unfccc.int/, https://www.mzp.cz/, https://commission.europa.eu/, https://grantex.cz/
Graphic source: https://storyset.com/
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