Czech energy regulator: Applications for electricity generation licenses rise to 3,900, often contain errors

The Energy Regulatory Office (ERÚ) handled 3,900 applications for licenses for new electricity generation facilities last year. Their number is gradually rising, having nearly doubled over the past five years. A frequent problem is errors in the applications: only one fifth were error-free last year. The office is preparing systemic changes in response. ERÚ reported this today. Construction of new electricity generation facilities accelerated significantly after the energy crisis.

Under the law, facilities with a capacity of more than 50 kilowatts (kW), or plants primarily used for business, require a license from ERÚ. Smaller household installations do not need one.

„The increased workload and the resulting delays in processing are caused not only by the number of license applications, but also by the high rate of errors. Four out of five applications submitted have defects, which means we have to request additional or corrected documents, often repeatedly. The excessive administration then affects not only the office, but above all the license applicants. They are also often under pressure because they have to meet project schedules, for example, to comply with subsidy conditions,“ said Jakub Med, director of ERÚ’s Administrative Proceedings Section.

According to the office, the main problem in most cases is incomplete documentation required under the Energy Act. For example, applicants may omit proof that the electrical installation is safe, typically an inspection report. Instead, they often attach confirmation that the generating facility has been connected to the electricity grid, which ERÚ says cannot replace an inspection report. Many applicants also fail to provide proof of ownership or the right to use the energy facility, which can be demonstrated with a purchase or lease agreement, a works contract accompanied by proof of handover, and other documents.

Another frequent problem in applications, according to ERÚ, is that information in the supporting documents differs from that in the application itself. For example, the declared capacity or the number of installed panels at solar power plants may differ. As a result, the license application describes a different facility from the one covered by the documentation, the office noted.

„We are well aware that the current process for applying for licenses and processing them is lengthy and complicated, especially for anyone who does not work in the energy sector every day. That is why we are preparing systemic changes to improve the current situation. We also need to provide applicants with much more intensive information support. For example, a new series of webinars organized by ERÚ will offer guidance on how to submit an application correctly, along with other information,“ said Jan Šefránek, chairman of the ERÚ Board.