NKÚ audit: Industry Ministry subsidies for energy savings and renewables fail on impact and uptake

The Supreme Audit Office (NKÚ) has published the findings of an audit focused on funds spent by the Ministry of Industry and Trade (MPO) to support improvements in energy efficiency and renewable energy sources (RES). The audit covered the period from 2018 to May 2025 at the MPO, the Agency for Enterprise and Innovation, and 16 selected support recipients. According to the auditors, the subsidies delivered minimal effect, and suspected breaches of budgetary discipline were identified at several audited recipients. The office filed criminal complaints against these entities, delaying publication of the audit findings.

According to NKÚ findings, total support paid out under the audited programmes exceeded CZK 26.4 billion as of 1 May 2025. However, the auditors' conclusions show that the billions distributed had only a negligible impact on actual energy consumption, while targets are not being met under a number of subsidy schemes.

OP PIK: Low interest, looser criteria and negligible impact

For the 2014–2020 period, the Czech Republic committed to annual energy-consumption savings of 51.5 PJ. This figure was approved by the Czech government in 2017 through an update to the National Energy Efficiency Action Plan (the original target was slightly lower, at around 51.1 PJ).

However, the Czech Republic failed to meet the binding annual savings target, with actual savings reaching only 48.5 PJ. One reason was the low contribution from the Operational Programme Enterprise and Innovation for Competitiveness (OP PIK).

According to NKÚ, CZK 13.9 billion was paid out under the Energy Savings programme within OP PIK. As of 20 May 2025, achieved energy-consumption savings totalled 4.6 PJ, representing just 1% of total net final energy consumption in industry and services in the Czech Republic.

Businesses showed little interest in energy-saving subsidies. To support a higher number of applications, the MPO lowered the project eligibility score threshold in three calls from 60 to 50 points. While this ensured support for more than a thousand projects, it also funded more expensive projects with lower energy benefits.

The Renewable Energy Sources programme under OP PIK supported projects with a total of CZK 613.7 million and achieved its planned 60 MW of newly installed capacity by the end of 2023 (65 MW at the time the audit was completed).

NKÚ also criticised the MPO for assessing programme benefits using nationwide Czech Statistical Office indicators (for example, total energy consumption in industry). According to the office, these indicators do not provide sufficient evidence of the actual benefits of the subsidies themselves, as they are influenced by a range of external factors.

OP TAK: Delays in renewables and a symbolic contribution

According to the auditors' conclusions, the newer 2021–2027 Operational Programme Technologies and Applications for Competitiveness (OP TAK) faces significant risks in meeting its 2030 targets. By 2030, the Czech Republic is to achieve cumulative energy savings of 669 PJ. From its allocated CZK 12.4 billion, OP TAK is expected to contribute savings of 2.7 PJ, amounting to just 0.4% of the Czech Republic's total required savings.

A specific area of the programme has an allocation of CZK 5.1 billion to increase installed RES capacity by 231 MW by 2029. A milestone equivalent to one tenth of this amount, or 23 MW, was set for 2024. However, by the end of 2024, RES capacity had not increased by even one MW thanks to this programme. The reason was significant delays in launching calls due to changes in European legislation. By May 2025, expenditure had been paid out for three projects, but these had not yet delivered any increase in capacity either.

National Recovery Plan: Authorities show no interest in building subsidies

Under the National Recovery Plan (NPO), NKÚ highlighted failures in support intended for state organisational units to reduce the energy intensity of their buildings. Of the allocated CZK 2.9 billion, only CZK 268 million, or less than one tenth, had been drawn after three years. The projects have so far delivered savings of 19.7 TJ/year, while the target set for March 2026 is 140 TJ/year.

According to NKÚ, the main reason for the lack of interest among state institutions was the unsuitable conditions set by the MPO. The ministry failed to take account of the short time available to implement projects, rising construction costs, inflation and limited investment capacity in state institutions' budgets. There is therefore a high risk that the Czech Republic will fail to meet this target under the NPO programme.

Irregularities among subsidy recipients

NKÚ also conducted a detailed audit of 16 selected recipients of support under the Energy Savings programme within OP PIK, which received paid-out support totalling more than CZK 194 million. At four audited recipients, the audit office identified facts indicating breaches of budgetary discipline totalling CZK 2.7 million.

According to the office, one recipient included the replacement of interior doors in subsidised costs despite this having no impact on energy savings. Another recipient reported balcony glazing beyond the approved project scope and items that were not implemented as subsidised costs. Another recipient included shading equipment and routine building-maintenance items among eligible expenditure.

The most serious error, however, occurred at a recipient that built only one photovoltaic plant instead of the two approved, with a different number and capacity of panels. It did not report the change and submitted altered accounting documents and invoices that did not correspond to reality to both the provider and NKÚ, resulting in unreliable accounting records. In this case, the office assessed the suspected breach of budgetary discipline at approximately CZK 1.6 million.