Czech government approves energy communities bill, allowing electricity sharing

Yesterday, the government approved an amendment to the Energy Act that allows energy communities to be established in Czechia. These communities will be able to share locally generated electricity via the distribution grid. Industry and Trade Minister Jozef Síkela (STAN) announced the news on Twitter. The amendment will also allow people to share electricity they generate themselves at another delivery point, for example from a cottage to an apartment.

„This will strengthen our energy security, make it possible to reduce energy costs and also help our environment,“ Síkela said yesterday.

According to Síkela, the ministry involved the broadest possible range of stakeholders in drafting the amendment, from non-governmental organisations and distribution system operators to the Energy Regulatory Office and transmission system operator ČEPS. „The final version provides a workable, and above all stable, model for how community energy will operate here in the future,“ the minister added.

The amendment builds on previous changes made in response to problems in the energy market and intended to facilitate the use of renewable energy sources. It therefore introduces energy communities as new market participants. These communities, which will become legal entities in the form of cooperatives or associations and be registered with the Energy Regulatory Office, will be based on the joint production of energy, for example by solar or wind power plants, and its subsequent sharing among members. This could include sharing energy among households or different communities, such as municipalities, schools, public authorities or businesses.