Czech electricity grid operators are likely to increase investment to nearly CZK 40 billion a year

Investment by domestic electricity system operators is likely to rise by 38 percent a year in the coming years compared with current levels. Nearly 40 billion crowns will therefore be spent each year on transforming and modernising the grids. The exact amount, however, will still depend on the conditions for subsidies set by the state. The Czech Association of Regulated Electricity Companies (ČSRES) informed the Czech News Agency (ČTK). According to the association, higher investment is necessary because of growing demands for grid development and management.

The association of regulated electricity companies includes transmission system operator ČEPS and distribution grid operators ČEZ Distribuce, EG.D and PREdistribuce.

„Between 2010 and 2023, the average annual investment by ČSRES members was close to 29 billion crowns. But we now know that even such a large amount will not be enough in the future. A further roughly 11 billion crowns a year will be needed for investment linked to new demands for decentralised generation, the large-scale connection of renewable energy sources, and the electrification of transport and heating,“ said Marian Rusko, chairman of the ČSRES Council.

„EU and Czech goals linked to stricter climate protection will inevitably lead to further growth in investment in energy infrastructure,“ he said.

According to the association, the money will go, for example, towards modernising and developing physical infrastructure, introducing new technologies and digitising systems. The operators want to ensure the future operation of the Czech grids, when the demands on their management will increase as the energy sector continues to decarbonise.

„We are addressing the pace of grid construction, increasing capacity and electricity surpluses from thousands of small-scale sources. Smart meters are being installed, and we are preparing for remote control and regulation of lower-voltage distribution networks. This entails investment in automation in the form of new IT systems and communication protocols, as well as the use of advanced analytics to process enormous volumes of data. In addition, we are building the Electricity Data Centre, which will start operating as early as this August,“ Rusko said.

Some investment will also go towards strengthening the cybersecurity of the electricity system in Czechia. Companies are responding to the development of so-called smart devices, which are increasingly being integrated into the system. Another goal for operators is to prepare the system for risks associated, for example, with natural disasters. „We now have to respond to sudden qualitative changes that will lead to greater openness and sustainability, so that we can prevent greater vulnerability across the entire system,“ Rusko added.

According to the association, the feasibility of the investment will depend on decisions by the Energy Regulatory Office, which sets the conditions under which electricity system operators can receive subsidies. ČSRES is also in talks with the state about a possible increase in subsidies and the availability of suitable subsidy programmes, which the association says has so far been relatively limited. Over the past ten years, ČSRES members have received 6.55 billion crowns from European funds, roughly 0.19 percent of the total EU funding allocated to Czechia. Consultancy Deloitte is currently analysing the economic impact of modernising the Czech electricity system.