Czech senators may amend bill on gas-fired power plants

The Senate’s Economic Committee has postponed approval of an amendment to the Energy Act aimed at speeding up permitting for new combined-cycle gas power plants, as it prepares changes to the bill. Today, committee chairman Miroslav Plevný (for STAN) opposed introducing individual profitability reviews for solar power plants with a capacity of more than 145 kilowatts that were commissioned in 2009 and 2010.

Originally, the reviews were to apply to solar power plants with a capacity of 30 kilowatts or more. The Chamber of Deputies approved this measure three months ago, despite opposition from the Senate and the opposition, following a proposal by Finance Minister Zbyněk Stanjura (ODS). He said the measure would save the government money from the budget for supported energy sources. At the end of April, the Chamber of Deputies narrowed the scope of plants subject to review as part of Lex plyn. Critics say the amendment changes the rules mid-game, places an administrative burden on plant operators, could lead to arbitration and threatens the Czech Republic’s ability to meet its climate commitments. Plevný believes operators who bought their plants in recent years would be unable to comply with the reviews, exposing them to a fine of up to 50 million crowns.

Combined-cycle gas power plants should provide sufficient capacity to generate electricity as coal-fired power plants are phased out. This should help Czechia avoid dependence on electricity imports from abroad. The amendment could shorten permitting processes by up to five years. It stipulates that investors in gas-fired power plants must state in their authorisation application their expected choice of supplier for the plant. Applicants will also have to comply, during the construction and maintenance of such plants, with requirements concerning the state’s security interests, as set by the Ministry of Industry.

The amendment would also ban the use of so-called energy dump loads. These devices convert surplus electricity into heat that is released into the atmosphere, and are used mainly when electricity prices are low.

The amendment classifies renewable power plants with a capacity of more than 15 megawatts as energy security infrastructure. For wind power plants, the threshold will apply to the entire wind farm. The Senate committee would like to add an accompanying resolution to the bill concerning biogas plants.