Havlíček: Capacity mechanisms for new generation now energy priority in Czechia

The priority in developing the Czech energy sector is now to establish capacity mechanisms for the construction of new generation. Minister of Industry and Trade Karel Havlíček (ANO) said this today when presenting the government's economic strategy. The capacity mechanism system should guarantee investors, through state support, at least a partial return on their investments in new generation. In the first phase, the state should focus on gas-fired generation; according to Havlíček, the first power plants should begin construction in 2028 and could be operational from 2031.

So-called capacity mechanisms are used to ensure sufficient energy in the grids throughout the year, including during periods of peak consumption. Under these mechanisms, for example through auctions, the state would guarantee investors support for providing an electricity source.

"The current number one task is capacity mechanisms. It is an absolutely crucial step for the Czech energy sector," Havlíček said.

According to him, the state is now awaiting EU notification of the system, which the minister said should be completed in June. The Ministry of Industry and Trade will then begin selecting investors, according to Havlíček, with the first tenders potentially starting in October.

After the introduction of capacity mechanisms, the first generation sources could begin construction in around two to three years, with the first gas-fired power plants potentially in place around 2031.

Especially in the coming years, the mechanisms should primarily operate for gas-fired generation, which the state sees as a key replacement for coal-fired power plants and heating plants that are being gradually phased out. However, they should also apply to other sources.