Wind power growth in Czechia set to accelerate as ministry backs nearly twice as much capacity

The government has submitted for public consultation an amendment to a government regulation setting the volume of supported renewable electricity and heat sources. The regulation now also sets values for 2025. The Ministry of Industry and Trade has again not proposed operating support for photovoltaic power plants in 2025; in contrast, the state will support up to 240 MW of installed wind power capacity.

Since 2022, the government has annually set the capacity of individual types of renewable energy sources eligible for support over the following three years. The government first set such support last year. Its first amendment is now under way, adding an outlook for 2025. The volume of supported capacity for 2023 and 2024 remains unchanged.

The government regulation defines two support categories: support in the form of a green bonus and an auction bonus. Support in the form of feed-in tariffs is no longer granted to new generating facilities. The auction bonus is generally intended for facilities with higher installed capacity—wind farms above 6 MW or comprising more than 6 wind turbines, while for other sources the lower installed-capacity threshold is 1 MW.

The government regulation has often been criticised by renewable energy associations. The amount of installed capacity eligible for support was generally very low, and no operating support was announced at all for photovoltaic power plants.

The Ministry of Industry and Trade is taking a similar approach in the first update of the government regulation. Photovoltaic power plants are not expected to receive operating support in 2025 either and will continue to have to rely solely on investment support.

Volume of supported wind power capacity to almost double

In contrast, the state will support substantially more wind power. While it will support a maximum of 130 MW of capacity in 2024, the Ministry of Industry and Trade has proposed almost twice as much for 2025—210 MW of new and 30 MW of modernised wind power capacity. Operating support for the modernisation of wind power plants will be available for the first time in 2025.

“Wind energy can be highly beneficial for us. Developing this sector means not only strengthening our country’s energy security and better environmental protection, but also creating new job opportunities and supporting the local economy. That is why we support its development. We are simplifying permitting processes for new power plant installations and have multi-billion-crown subsidy programmes available. Our amendment to the Energy Act, which will enable the creation of community energy, could also significantly help its expansion,” Minister of Industry and Trade Jozef Síkela said on the occasion of World Wind Day.

Although the supported capacity volumes are very low, for example compared with Germany, filling the auctions remains a problem. Two auctions have so far been held in Czechia—in the first auction, no bids were submitted, while in the second, repeated auction, two bids were submitted and succeeded. As the auction was undersubscribed and the applicants requested the maximum possible price, they were awarded that price.

This year, wind power plants with a total capacity of 60 MW can obtain support in auctions. Wind facilities with capacity of up to 40 MW can newly receive a green bonus. However, the ministry has not announced any auction this year.

The main reason why interest in the auctions has so far been rather lukewarm is the lack of projects. Over the past ten years, construction and project preparation have effectively come to a halt due to the lack of support for new facilities. Given the time needed for overall project preparation, Czechia has very few projects that can be commissioned within the deadlines required by the auction conditions. In the only successful auction to date, the deadline for commissioning was set for the end of 2026.

It is also a question of how investors’ willingness will be affected by the government’s latest statement regarding the planned abolition of support for renewable energy sources. If it does not discourage investors entirely, they will certainly factor the higher risk associated with unpredictable government actions into the price requested in the auction. Since support is paid from public funds, the higher costs will be borne by Czech citizens and businesses, whether in the form of a subsidy from the state budget or through a component of the electricity price.

State to support four times as many biogas plants

In addition to wind energy, generating facilities using biogas will also receive higher support. While the state announced support for a total of 10 MW in 2022 to 2024, support for 2025 is four times higher.

However, the support always applies only to the modernisation of electricity-generating facilities, not to new facilities.

The government regulation has been in public consultation since Monday, lasting until 12 July 2023. The government must then approve it by the end of the year so that support for electricity, heat and biomethane can always be announced at least three years in advance.