Czech government approves decree activating operating support for renewables

The government yesterday approved an activation decree setting out plans for operating support for renewable energy sources. The measure is intended to stabilise heat prices, support the development of renewables and strengthen generation capacity from zero- or low-emission energy sources. The Ministry of Industry and Trade (MPO) said.

The decree activates support for wind farms, small hydropower plants and biomethane plants in 2025, 2026 and 2027. It also supports biomass-fired heat plants in 2025 and provides continued support for heat from biomass in 2025 and 2026. Support for electricity generation from combined heat and power plants is activated for 2025.

“Electricity and gas prices will fall by 8.5 to 10 percent year on year from next year. It is essential to me that we also keep heat prices affordable and, ideally, bring them down. That is why we have prepared operating support for key renewable energy sources, which will stabilise heat prices, particularly at smaller municipal heating plants, increase generation capacity and accelerate the decarbonisation of the Czech energy sector,” said Minister of Industry and Trade Lukáš Vlček (STAN).

According to Vlček, the state is continuing its support for the transformation and decarbonisation of the district heating sector. He also pointed to the recent auction supporting combined heat and power generation and the launch of a call for projects supporting energy production from biomass, with grants totalling CZK 500 million.

Under the decree, renewable electricity generators and combined heat and power plants with a capacity of more than one megawatt (MW), as well as biomethane plants, will bid for support in auctions and receive it in the form of an auction premium. The state will begin providing this support between 2028 and 2030, when the plants enter operation or complete modernisation. Electricity generators with a capacity of up to one MW and biomass-fired heat plants will receive an administratively set green bonus. The state will begin providing this support in 2025.