EGÚ: Investment in Czech energy sector could reach CZK 3 trillion by 2030

Investment in Czech energy could reach as much as CZK 3 trillion by 2030, depending on the pace of the shift away from fossil fuels. Experts from consultancy EGÚ Brno reached this conclusion and presented their findings today at the Energetika 2024 conference in Brno.

“The energy transition requires replacing the vast majority of fossil primary energy sources, especially coal and oil fuels. Companies may not feel the costs of the decarbonisation they are being asked to deliver as keenly, because they should be able to cover almost half of the necessary funding from public sources. Support for energy investment is an effective brake on rising energy prices and is in the state’s interest. For industry, the wave of investment in energy will be a significant opportunity,” said Michal Macenauer, strategy director at EGÚ Brno.

The energy system will need to replace 30 terawatt-hours (TWh) of electricity generated from coal, representing about 38 percent of electricity produced. District heating will need to replace approximately 16 TWh of heat generated from coal, about half of current heat production. The total investment in this area will be around CZK 900 billion.

One solution is cogeneration units, which produce electricity and heat at the same time. “Interest in cogeneration is rising sharply, as our record sales demonstrate. In the first half of the year alone, the number of cogeneration units delivered increased by more than a fifth. In addition to industrial facilities, they are increasingly finding a place in district heating plants, hospitals, hotels, public buildings and apartment blocks,” said TEDOM sales director Miloslav Kužela.

Investment will also be needed in distribution networks. According to calculations by EGÚ experts, around CZK 500 billion will need to be invested in strengthening and digitalising the grids to safely connect a large number of small-scale energy sources.

EGÚ’s calculation includes investments in completing two new nuclear units and building another two to replace the existing units at Dukovany, constructing three new large combined-cycle gas units of 900 MW each, 2,5 GW of gas-fired sources in district heating, 700 MW of gas cogeneration, or 20 GW of photovoltaic power plants.

According to EGÚ, the investment environment in the energy sector has improved, particularly thanks to the completion of the tender for new nuclear units, the easing of rules for installing photovoltaic power plants, the shift away from Russian oil, and approval of a support scheme for combined heat and power generation.

“There are still many issues in the energy sector that political representatives need to resolve. These include speeding up permitting for energy projects and taking other necessary measures, such as supporting investment in new stable electricity sources, setting the conditions for developing wind power, and establishing a legal framework for electricity storage,” Macenauer added.