Czech Chamber of Deputies backs proposal to speed up construction of combined-cycle gas plants

The Chamber of Deputies today gave initial backing to an amendment to the Energy Act and the Act on Accelerating the Construction of Strategically Important Infrastructure, proposed by MPs and intended to help speed up the construction of combined-cycle gas-fired power plants. These plants are expected to provide sufficient capacity to generate electricity as coal is phased out in the coming years. According to an earlier statement by Prime Minister Petr Fiala (ODS), this will help Czechia avoid dependence on electricity imports from abroad. The proposal, nicknamed lex plyn, could shorten permitting processes by up to five years.

The proposal was submitted to the Chamber of Deputies by Minister of Industry and Trade Lukáš Vlček (STAN), together with other coalition MPs. According to Vlček, the law is intended to ensure a sufficient supply of electricity from sources whose output can be easily adjusted and which can balance fluctuations in renewable energy generation.

„In any case, this law must be adopted to preserve the energy security of the Czech Republic,“ said rapporteur and opposition ANO MP Roman Kubíček.

He said the law would protect citizens from energy shortages. He stressed, however, that it was not a law aimed at reducing electricity prices, but pointed out that a sufficient supply of electricity must be ensured for heating, lighting and cooking, especially during periods of transition and peak demand, when renewable sources are not enough. „We will not obstruct this law in any way,“ he said. „We support this amendment,“ said SPD MP Marcel Dlask, adding that the law would strengthen energy security.

The government supported the proposal from its member Vlček. However, it recommended resolving during the legislative process any conflicts with the Building Act and the Code of Administrative Procedure, as well as issues relating to international environmental protection commitments. The government also said it was necessary to clarify whether the proposed legislation was consistent with EU law.

According to the sponsors, gas-fired power plants are expected to play a key role primarily as backup capacity capable of stabilizing variable output from renewable sources. „The proposed amendment to the Energy Act responds to the situation on the energy market, which calls for measures to ensure the energy security of the Czech Republic. These measures should include ensuring stability and a reliable energy supply for consumers and businesses,“ the MPs, led by the minister, wrote in their justification for the proposal.

Among other things, they propose allowing the Energy Regulatory Office, in cases of urgent need and in the public interest, to require an electricity generation licence holder to generate electricity beyond the scope of its licence. They explain that, given the high share of coal-fired sources in electricity generation, there is a risk that the uncontrolled shutdown of coal-fired plants could jeopardize 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.

An investor in a gas-fired power plant would also have to state in its application for authorization its anticipated choice of supplier for the plant. During the construction and maintenance of such a plant, the applicant would also have to comply with requirements relating to the state’s security interests, as specified by the Ministry of Industry and Trade.

The bill will now be reviewed by the Chamber of Deputies’ Economic Affairs Committee. MPs halved the deadline for its consideration, from 60 to 30 days.