Czech amendment hailed by renewables advocates as breakthrough, but restrictions remain

Approval of the amendment to the Energy Act, which should enable the creation of so-called energy communities, is a breakthrough for the development of community energy in Czechia. However, the work is not over, industry organisations said in statements sent to the Czech News Agency (ČTK) today. They say the amendment still contains flaws that could pose problems for setting up communities. They are also calling for the swift establishment of further conditions for energy communities to operate.

Energy communities will be able to share locally generated electricity via the distribution grid. This will make it possible to share electricity at a different point of delivery, for example from a holiday cottage to an apartment. Last week, the Chamber of Deputies approved the amendment to the Energy Act that introduces community energy. It will now be considered by the Senate. If the process is completed quickly, the first communities could start sharing electricity from July next year.

„The adoption of the amendment to the Energy Act is great news for households, municipalities and businesses. Sharing electricity from their own zero-emission sources will contribute in the long term to greater energy self-sufficiency and thus to lower electricity costs,“ Martin Ander, a community energy expert at the Modern Energy Union, told ČTK.

Štěpán Chalupa, head of the Chamber of Renewable Energy Sources, also highlights the amendment’s importance in laying the foundations for the digitalisation and modernisation of the entire energy sector. He says electricity sharing will be particularly suitable for smaller sources.

However, the union says the current version of the amendment still contains several major restrictions. In particular, it does not allow municipalities to increase their share of voting rights in the communities. „This will reduce municipalities’ motivation to bring other partners, especially local households, into such communities,“ Ander noted. Another restriction, he said, is the limit allowing a household to participate in only one sharing group. Hnutí Duha agrees, objecting, for example, that MPs did not support introducing a more advantageous dynamic method for allocating shared electricity or allowing a single consumption point to participate in multiple communities. The organisations therefore hope further changes will be made.

They also point out that further steps will be needed to ensure community energy works well. For example, they are calling for the swift establishment of an Energy Data Centre and suitable conditions for registration and sharing. The Energy Regulatory Office will be responsible for setting the conditions.

However, industry representatives see great potential in community energy. Laura Otýpková, an energy law expert at the Frank Bold organisation, says Czechia can expect a boom in community energy next year. „The law has been well prepared, and it is now almost certain to be approved by the end of the year. Energy communities will therefore be able to form from January, and then start sharing electricity from July,“ Otýpková said. According to Hnutí Duha, hundreds of entities are currently considering setting up an energy community. Jiří Krist, a member of the UKEN council and chair of Enorkom Opavsko, says that by 2030, up to a third of municipalities and half of citizens could be involved in some form of community energy.

The Chamber of Renewable Energy Sources, however, is tempering expectations. „The current amendment is not a cure-all, nor can it aspire to solve everything. For example, there are other, often more suitable models for electricity consumers living near wind farms that can help build acceptance for wind farm construction,“ Chalupa added.