Czech government adopts climate and energy plan, renewables share to reach 30% by 2030

The share of renewable energy sources in total consumption is expected to rise from around 18 percent currently to 30 percent by 2030. Growth is expected to be driven mainly by solar and wind power. Over a longer time horizon, nuclear power is also expected to expand, particularly through the construction of up to four new nuclear units. This is set out in the climate and energy plan approved by the government today. Industry and Trade Minister Jozef Síkela (STAN) said at a press conference that around half a trillion crowns would need to be invested in the energy sector by the end of the decade. The plan also confirmed Czechia’s phase-out of coal burning by 2033.

The government approved the updated plan later than scheduled; the original deadline was the end of June. The plan will now be sent to the European Commission, with which the government will continue to consult on the document and make any necessary revisions. The state should have the final version ready by next summer.

„The plan sets out the outlook for the development of the energy sector through 2030. By then, electricity consumption will have risen by approximately a tenth compared with today. On the other hand, we expect a significant decline in energy consumption and a reduction in coal-fired electricity generation. These changes should be largely offset by increased electricity generation from renewable energy sources. We will also stop exporting lignite-fired electricity, which will no longer be profitable to produce due to the price of emissions allowances,“ Síkela said.

According to the minister, electricity will gradually replace other fuels, particularly coal and oil. This will make it necessary to significantly increase electricity generation from renewable sources, primarily by developing solar and wind power. The plan therefore envisages adding 10.1 gigawatts (GW) of installed capacity from grid-connected photovoltaic power plants and 1.5 GW of wind power capacity by 2030. Hundreds of new wind turbines are expected to be built.

The state also intends to gradually expand nuclear power. According to Síkela, nuclear’s share of electricity generation should be around 40 percent by 2030. In the following decade, the plan envisages the construction of new nuclear units, which should gradually increase nuclear power’s share to as much as 60 percent. In addition to the unit currently being prepared at Dukovany, another could be built at Dukovany to supply a heat pipeline to Brno, with two more at Temelín. However, nuclear power is expected to be addressed in greater detail mainly in the forthcoming update of the State Energy Policy.

The government also confirmed in the plan its expected timeline for phasing out coal by 2033. Síkela pointed out that coal-fired generation will decline significantly before then because of high emissions allowance prices.

According to the minister, electricity generation from natural gas should also rise temporarily in the coming years, with gas serving as a complement to the less predictable output from renewable sources. Czechia should also import more electricity from abroad, Síkela said.

„We estimate that around 500 billion crowns will need to be invested in modernising the energy sector by 2030, and more than 350 billion crowns in industry. The main source of support for the transformation will be the Modernisation Fund, which is also financed by revenues from emissions trading,“ Síkela added.

Industry organisations criticised the plan before its approval, saying it lacks ambition and fails to make use of the country’s potential.

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