Czech Industry Ministry to provide CZK 1 billion for modernising local distribution systems

The government will provide CZK 1 billion for the modernisation of local distribution systems. The Ministry of Industry and Trade (MPO) has now launched two new grant calls for this purpose. Their aim is to save energy in the systems and increase their capacity. The MPO announced this today in a press release.

„Modernising local distribution systems will help us in our efforts to develop the Czech energy sector. These two calls will support their operators in purchasing equipment that reduces losses in the distribution system and will also help install smart components, giving consumers the opportunity to better manage their electricity consumption and thus reduce their expenses,“ said Minister of Industry and Trade Jozef Síkela (STAN).

The funding will be available to operators of local distribution systems connected to fewer than 90,000 customers. The first call is focused on achieving primary energy savings in electricity distribution. Distributors will be able to use the funding to purchase and install transformers, transformer substations and other equipment. According to the ministry, the other call is intended to help strengthen the capacity of local distribution systems and enable more renewable energy sources to be connected to the grid. The funding can therefore be used to modernise power infrastructure or install smart distribution system components. CZK 500 million has been allocated to each call.

„We believe that, first, the calls will effectively support the fulfilment of energy efficiency targets, which is one of the fundamental pillars of the transition to a low-carbon economy. Second, we expect faster development of smart grids and conventional grid reinforcement in Czechia, which is necessary for the rapid development of renewable energy sources,“ said Marian Piecha, Director General of the EU Funds Section.

System operators will be able to submit applications from 2 April to 30 December 2024.