Czech Senate should back creation of energy communities, committee says

oEnergetice.cz, ČTK
oEnergetice.cz, ČTK
19 December 2023, 14:27
Czech Senate should back creation of energy communities, committee says

The Senate is likely to approve the creation of energy communities that will be able to share locally generated electricity from renewable sources. This was recommended to it today by its Committee on Regional Development, Public Administration and the Environment as part of an amendment to the Energy Act, which is still to be considered by the Economic Affairs Committee. The upper house will decide on Wednesday on the amendment, which will allow people to share self-generated electricity, for example from a holiday cottage with an apartment in the city.

The amendment is intended to establish energy communities as new market participants. The basis of these communities, which will become legal entities, cooperatives or associations and be registered with the Energy Regulatory Office, will be the joint generation 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.

Community members’ voting rights will be limited. Each member will have a maximum 10% stake and therefore no more than 10% of the voting rights. In addition to regions, municipalities and their voluntary associations, municipal or regional subsidised organisations that are businesses will also be eligible to join.

Illustrative photo

In its proposal, the government has temporarily limited the size and regional scope of communities to 1000 connection points and a maximum of three neighbouring municipalities with extended powers. The restriction is to remain in force until 30 June 2026. An Electricity Data Centre is also to be established in this context to monitor electricity generation and consumption across the system. According to Industry and Trade Minister Jozef Síkela (STAN), the data centre is expected to enable full data exchanges only by mid-2026.

The amendment to the Energy Act also introduces the concept of a so-called vulnerable customer, who will be better protected than other consumers. This will include people who use equipment in their homes that requires an uninterrupted electricity supply and is essential to maintaining basic life functions. The government will specify the exact list of such devices by regulation. For example, vulnerable customers will be entitled to free personalised notification of restrictions or interruptions to their electricity supply due to planned work, no later than 15 days in advance.

An amendment proposed by ANO MP Josef Kott became a point of contention in the Senate committee. Despite Síkela’s opposition, Kott secured operating support for electricity generation at new biogas plants. According to the MP, the support is intended to enable the development of small biogas plants and help decentralise the power system, but it also removes operating support for heat from biogas. Representatives of the Industry Ministry said this could be corrected by another energy amendment, which the government is expected to consider in February. In addition, the support would need European Commission approval. The ministries are due to meet professional associations on 10 January to find out whether there is interest in support for electricity generation at biogas plants.

Translation disclaimer

This article is a machine translation of the Czech original and has not yet been fully reviewed. In case of any doubt, please refer to the Czech version.