Czech Chamber of Deputies may ban use of devices that waste surplus energy

The Chamber of Deputies may ban the use of devices that waste surplus energy, under threat of a fine of up to five million. This is envisaged by an amendment proposed by Industry and Trade Minister Lukáš Vlček (STAN), which the Economic Affairs Committee today recommended attaching to an amendment to the Energy Act known as lex plyn. The bill is intended to help speed up construction of gas-fired power plants, potentially shortening permitting processes by up to five years. Gas-fired power plants are expected to provide sufficient electricity generation capacity as coal is phased out.

Over the past year, distributors have seen a sharp increase in applications to connect so-called electricity dumpers to distribution networks, driven by negative electricity prices on the market. These devices convert electricity into heat with no further use for it. Vlček’s amendment would ban the use of electrical equipment „if effective further use is not made of the electricity consumed by the equipment“. A decree would set out the specific ways in which this electricity could be used.

„The aim is to address clear-cut cases of electricity dumpers as early as the equipment certification process for the provision of ancillary services and the conclusion of contracts to provide these services,“ Vlček wrote in his justification.

According to Vlček, the amendment should significantly restrict the operation of environmentally harmful devices with no useful purpose and ensure that surplus electricity is either put to effective use or stored.

According to the bill’s sponsors, led by Vlček, gas-fired power plants are to play a key role, primarily as backup capable of stabilising variable generation from renewable sources. „We all know that coal is coming to an end. Gas is only a solution for the period until we build new nuclear units,“ said Ivan Adamec (ODS), chair of the Economic Affairs Committee.

Under the amendment, the Energy Regulatory Office (ERÚ) could, in cases of urgent need and in the public interest, require a holder of an electricity generation licence to generate electricity beyond the scope of their licence. The bill’s authors argue that, given the high share of coal-fired generation, there is a risk that the uncontrolled shutdown of coal-fired power plants could threaten the reliability of electricity supplies and reduce energy security. An electricity generator subject to this requirement would be entitled to compensation for its losses or a reasonable profit.

Supporters of the environmental organisation Greenpeace protested today at Malostranské Square, near the Chamber of Deputies, over the possibility of what they called subsidies for „coal barons“. Environmentalists argue that the amendment to the Energy Act lacks a clear time limit for subsidies and a date by which coal-fired power plants should definitively close. They say this could mean that, instead of gradually moving away from coal, Czechia would continue to fund the operation of outdated and inefficient coal-fired power plants. The rules for revoking licences for power plants that are no longer needed also remain unclear, said Jaroslav Bican, head of Greenpeace Czech Republic’s energy campaign.

„Nobody wants to extend the operation of lignite-fired power plants so their owners can make money. But we need to ensure sufficient energy supplies,“ Adamec added.

According to Radim Fiala (SPD), decarbonisation without securing another energy source would end in disaster for Czechia. „The realistic solution is to leave the Paris climate agreement and abolish emissions allowances,“ he said.

The amendment stipulates that an investor in a gas-fired power plant must include information on the anticipated selection of the plant’s supplier in its application for authorisation. For the duration of the plant’s construction and maintenance, the applicant will also have to meet requirements concerning the state’s security interests, as set by the Ministry of Industry and Trade.

Today, the Economic Affairs Committee backed several amendments to the bill, which respond, among other things, to the government’s criticisms. The Cabinet recommended resolving conflicts with the Building Act and the Code of Administrative Procedure, as well as addressing the bill’s links to international environmental protection commitments.