ČEZ to invest a record CZK 19.7 billion in Czech distribution this year, with others also increasing spending

ČEZ Distribuce, the largest electricity distributor in the Czech Republic, will invest a record CZK 19.7 billion in its distribution networks this year. The investment will go mainly towards projects to strengthen the network, such as the reconstruction of electrical substations and power lines. CZK 8.8 billion will be spent on modifications needed to connect new customers and renewable energy sources. Soňa Holingerová, a spokesperson for the ČEZ Group, told the Czech News Agency (ČTK) in a press release today. Other distributors, EG.D and PREdistribuce, have also increased their investment this year.

“We are continuously carrying out investment projects to develop, renew and strengthen the distribution system so that we can meet our customers’ connection requests. We revised this year’s plan during the year to enable us to connect as many renewable energy sources as possible, especially solar power plants. We are investing CZK 2.5 billion more in modifications to our distribution system than last year. This is the largest volume of investment and construction in our history,” said Martin Zmelík, CEO of ČEZ Distribuce.

The company allocated a large part of the funding, around CZK 8.8 billion, to network modifications needed to connect new sources, especially solar power plants. ČEZ has received 48 803 requests for grid connections so far this year, 64 percent of which are for microgeneration units. So far, 26 557 generating plants with a total installed capacity of 658 megawatts (MW) have been connected. Across the entire ČEZ Distribuce service area, 132 980 generating sources with a capacity of eight gigawatts are now connected.

The company’s major projects included the reconstruction of the Hranice substation, the refurbishment of the overhead line between Lískovec and Příbor, the modernisation of the substation in Oldřichov, the reconstruction of the Doksy substation and network upgrades in Hořovice. A new substation in Nejdek was also completed.

ČEZ Distribuce is the largest electricity distributor in Czechia. It operates 167 628 kilometres of power lines, serving 3.7 million customer connection points, across 11 regions. E.ON Group company EG.D supplies electricity in the South Moravian and South Bohemian regions, as well as in parts of the Zlín and Olomouc regions and the Vysočina Region. PREdistribuce is responsible for electricity distribution in the capital, Prague.

All domestic electricity network operators say higher investment is necessary. In the coming years, they estimate that total spending on strengthening the networks will rise by 38 percent annually compared with current levels, to almost CZK 40 billion. The precise costs will depend, however, on the conditions for subsidies set by the state. The distributors say higher investment is needed because of growing demands on network development and management.