Czech industry ministry to launch new auction round to support wind and hydropower construction

The Ministry of Industry and Trade (MPO) will launch a new round of auctions on Tuesday for operating support for electricity generation from new or modernised renewable energy sources. The auctions are intended to support, for example, the construction of wind or hydropower plants and biogas facilities. Among other things, the ministry expects this to further reduce the country’s dependence on natural gas from Russia. This follows from information published by the MPO. The ministry already announced the first auction round last autumn, but no one applied at the time. It has therefore adjusted the conditions.

Energy auctions operate in a number of European countries, with renewable energy producers competing over the level of operating support. The idea is that the state determines, for example, how much wind capacity it wants, and producers compete in an auction over who can supply the specified volume of electricity to the grid with the lowest public support.

Through the announced auctions, the ministry wants to support the construction of electricity generation facilities using biogas with a capacity of at least one megawatt (MW), with total installed capacity of five MW; wind power plants of at least six MW or with more than six electricity generation units, with total capacity of 30 MW; and new or modernised small hydropower plants with capacity of seven MW. Applicants can submit their projects from Tuesday until 22 March.

The new call follows the first auction round last autumn. However, the MPO received no bids at the time. According to industry website oEnergetice.cz, it has therefore now decided to adjust the auction parameters to make the call more attractive for the sector. This primarily involves increasing the maximum price that an applicant may request in the auction, from the original CZK 2,376 per megawatt-hour by 20 percent for hydropower plants and biogas facilities, and by almost 50 percent for wind power plants. The deadlines for completing construction have also been extended.

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