The Czech Republic

In the Czech Republic the RES technologies are supported by several instruments: feed-in tariff, three categories of subsidies (Subsidy I, Subsidy II, Subsidy III), loans system, tax regulation mechanisms and premium tariff system. [54]

The major supporting instrument is feed-in tariff system. However, the alternative to guaranteed feed-in is green bonus which is paid at the top market price. System operators are allowed to choose one of these systems once a year. Wind parks are eligible to receive the tariff is the farm does not cover more area than 1 km2 and whose capacity exceeds 20 MW. All of the PV systems are eligible. However, from 1st of March 2011 to February 2011 only the building integrated systems will be supported. Only small scale (capacity up to 10MW) are eligible for support. All bio technologies are supported, however biomass power plants have to meet additional environmental restriction. The guaranteed payment for wind parks is from 2,23 to 3,55 CZK/kWh (from about 9 to 14 €ct/kWh), for solar systems from 5,5 to 14,66 CZK/kWh (about from 22 to 63 €ct/kWh), for hydro power plants from 1,87 to 3,06 CZK/kWh (about from 8 to 12 €ct/kWh), for biogas systems from 3,55 to 4,12 CZK/kWh (about from 14 to 17 €ct/kWh) and for biomass power plants from 2,63 to 4,58 CZK/kWh (about from 11 to 19 €ct/kWh). The degression of tariffs does not exceed 5% if the supporting period is longer than 11 years. The guaranteed feed-in is eligible for all technologies within the period of 20 years, except hydro power plants which are supported for 30 years. [54]

The same technologies are eligible for the premium bonus system as in case of feed-in tariff system. The premium is paid for each produced MW of electrical energy. Wind parks receive from 1,83 to 3,15 CZK/kWh (about from 7 to 13 €ct/kWh), solar systems from 4,5 to 13,66 CZK/kWh (about from 18 to 55 €ct/kWh), hydro power plants from 0,9 to 2,09 CZK/kWh (about from 4 to 8 €ct/kWh), biogas systems from 2,58 to 3,15 CZK/kWh (about from 10 to 12 €ct/kWh) and biomass power plants from 0,49 to 3,61 CZK/kWh (about from 2 to 15 €ct/kWh). The premiums are available for the same periods like in case of feed-in tariff. [54]

The European Regional Development Fund has introduced low-interest loans systems for the RES technologies which can be used for support alternatively with Subsidy II. The loans are available for all technologies without additional restrictions. The amount of loan is up to 50 millions CZK (but not more than 75% of the estimated eligible project costs) for 15 years. The interest rate is fixed at 1% per year. [54]

The tax regulation mechanisms allow avoid once of taxes on income from the RES. All technologies are supported by this instrument. However, in case of hydro power plants, only small scale systems are eligible (capacity up to 1 MW). [54]

The first subsidy system (EFEKT programme) is introduced by the Ministry of Industry. For this support are eligible only new hydro power plants with 85% efficiency or old hydro power plants which are able to achieve efficiency equal or higher than 75%. One more term to met is capacity which can not exceed 10 MW. The amount of subsidy is up to 3 millions CZK however not more then 40% of the eligible costs. [54]

The second subsidy system is use as an alternative to loan system. To receive support all of technologies are eligible without additional restrictions. The amount of subsidy is from 500 000 to 100 million CZK. [54]

The last one subsidy system (Operational Programme Environment) is funded by the Cohesion Fund. All wind technologies are eligible for support. The PV systems are supported only is there are integrated with buildings. Also all of the bio technologies and small scale hydro power plants are supported. The subsidy amount does not have minimum and to maximums. The subsidy must not exceed 20% of total investment costs and must not exceed 50 million CZK. [54]

In the Czech Republic the RES technologies have priority in grid connection and the grid operator is obligated is obligated to enter into connection agreements. Moreover if it is necessary the grid operator is responsible for the grid upgrading. [54]

Regulation requirements in the Czech Republic are Act No. 586/1992 Coll., Act No. 180/2005 Coll., Directive of the Ministry of the Environment No. 4/2010, Regulation No. 475/2005 Coll., Regulation No. 140/2009 Coll., Price Decision of the Regulatory Office for Energy No. 2/2010, Efekt Programme 2011, ECO-ENERGY Programme, Operational Programme Environment – Implementation Document. [54]

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