Czech Republic: Sectoral audit findings show that renewable energy plants are not excessively incentivised

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​published on 16th ​May 2022

 

At the beginning of April, the Czech Ministry of Industry and Trade published the report on the sectoral audit to determine the proportionality of support for renewable energy plants put into operation between 2006 and 2010.

 

Thus, the Ministry fulfilled its obligation towards the EU Commission as part of the notification process regarding the incentivisation of renewable energy sources to determine whether the incentives granted to renewable power plants put into operation between 2006 and 2010 were excessively large.

As reported, this obligation was also included in an amendment to the Act No. 165/2012 Legal Gazette on incentivised energy sources. Therein, the sectoral audit process and also the interval of the IRR that is considered appropriate across technologies was indicated. This interval was set at between 8.4 % and 10.6 %, whereas the value applicable to the respective technologies should be determined on the basis of a government regulation. This has not yet been done.

 

However, the sectoral audit findings show that, except for one power plant that uses mine gas and was put into operation in 2010, all sectors are far below the lower limit of the interval of 8.4 % ITT.

 

The result, i. e. the IRR determined, is summarised in the following table:
                                                                                 
 

Sectoral audit 2006 - 2008Sectoral audit 2009Sectoral audit 2010
Sector  ​Weighted by installed capacity  Weighted by produced electricity Weighted by installed capacity Weighted by produced electricity​​Weighted by installed capacity  Weighted by produced electricity
​Biogas  ​ 6,50​6,46 ​4,09​4,23​5,9 ​5,8
​Wind  ​6,73​7,23​4,42 ​5,09​< 5,9 ​< 5,9
Landfill gas  ​6,91​6,07 ​-​-​-​-
​Water  ​5,63​5,60​< 7,27  ​< 7,27​4,54   4,6
​Water (after reconstr.)​4,54​4,63​< 7,07​< 7,07​5,5​6,3
​PV​7,61​7,61​6,85​6,89​6,0 ​6,1
​Biomass  ​< 9​< 9​5,1​5,1 ​-​-
Mine gas  ​5,22 ​ 5,64​5,0​5,010,3 ​​10,3


Note: For values with "<", there were not enough values or the identified deviations were too large, so no representative average could be determined. The presented value is the highest IRR calculated during the sectoral audit for a power plant in this sector.

 

Thus, the operators of power plants operating in the respective period can now be certain that the regulations introduced through the last amendments to eliminate excessive incentivisation will not be applied. It is to be hoped that the Czech Republic will not intervene further in the incentivisation of existing renewable energy plants, as was unfortunately the case with PV installations in the past.


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