Czech industry ministry prepares public support measures over possible coal plant closures

The state has begun preparing for the possibility of earlier closures of coal-fired generation facilities in Czechia. The Ministry of Industry and Trade (MPO) is now preparing legislative instruments that would, if necessary, make it possible to provide public support for continued electricity generation. David Hluštík of the MPO told ČTK in response to an enquiry. Several energy companies have warned in recent weeks of the imminent loss of competitiveness of electricity and heat generation from coal, and some are therefore considering closing coal-fired facilities as early as the coming years. Coal currently accounts for around one-third of annual domestic electricity production.

The government had previously expected coal-fired power generation in Czechia to end no earlier than 2033. „From the perspective of planning the coal phase-out, the situation in the energy sector has changed significantly in recent years. While previous plans were based on the assumption that using coal would be economically advantageous and that we would choose the date of the phase-out ourselves during the 2030s, we are now in a situation where, primarily due to the price of emission allowances and falling wholesale electricity prices, coal use is ceasing to be profitable,“ Hluštík said.

The ministry is therefore preparing for a situation in which the state will have to create conditions to ensure sufficient electricity supplies and the secure operation of the transmission grid in the event of earlier closures of coal-fired facilities. „Therefore, as part of transposition, the MPO is preparing conditions so that, should a genuine need to provide public support arise, the Czech Republic will have the legislative instruments to introduce it,“ Hluštík noted.

Industry and Trade Minister Jozef Síkela (STAN) recently acknowledged that the ministry is drawing up scenarios for cases of coal power plant shutdowns. According to him, the state wants to be prepared for all possible developments. The worst-case scenario includes not only the end of coal use, but also an unplanned outage of nuclear units and the collapse of the energy grid interconnection with Germany. „We must determine how likely these scenarios are and then prepare for them,“ Síkela said.

Pavel Cyrani, vice-chairman of the board of ČEZ, called last week for accelerating the transition of the Czech energy sector from coal-fired power plants to new sources. The company acknowledged that operating coal-fired units will cease to be economically viable by 2027. According to Seznam Zprávy, Sev.en Energy Group owner Pavel Tykač is also considering an early closure of coal-fired facilities. He is expected to close two coal mines and the Počerady and Chvaletice power plants as early as spring 2025.

At the beginning of March, four domestic environmental organisations said that Tykač was trying to scare politicians with statements about closing coal power plants and obtain money in exchange for not closing them. Given the decline in emission allowance prices, they said a rapid collapse of coal-fired facilities is not imminent. Sev.en Energy spokesperson Gabriela Sáričková Benešová then denied, in response to an enquiry from ČTK, that the company was seeking public support from the state.