Czech solar companies fear subsidy cuts could threaten the entire sector

Government austerity measures that include cuts to subsidies could threaten the entire renewable energy sector. Jan Krčmář, executive director of the Solar Association of the Czech Republic, said this today at a solar energy conference in Prague. In his view, limiting state support would put thousands of projects at risk, with bank loans worth tens of billions of crowns. Environment Minister Petr Hladík (KDU-ČSL) said the state would continue to support renewable energy.

The cabinet of Prime Minister Petr Fiala (ODS) plans to save 62,4 billion crowns in spending next year. One of the main measures is a cut in subsidies. The Ministry of Industry and Trade, for example, announced that it plans to save up to 20 billion crowns as part of the consolidation package. It intends to make the savings by cutting non-investment subsidies for industry. The main measure will be a change to the system of fees for supported energy sources (POZE). These payments should not, however, be shifted to households.