Czech distributors to invest over CZK 30bn in grids next year, as this year

Electricity distributors in Czechia will spend more than CZK 30bn on investments in power grids next year. This will be a similar amount to this year. The money will primarily go towards strengthening grids, connecting new generation sources, upgrading and building equipment, and introducing modern technologies into grids. This follows from responses by distribution companies to questions from ČTK. The companies plan to increase investment in the coming years.

Prague Energy (PRE), which provides electricity distribution in the capital, invests more than CZK 2.5bn annually in the development of the distribution grid and plans to increase investment to up to CZK 3bn next year. “The reason is not only the thousands of new connection points added in Prague every year, but also the progressing electrification of heating and transport, as well as the growing number of connected renewable energy sources,” PRE spokesman Karel Hanzelka said.

One of the most demanding investments will likely be the expansion of the Prague North substation and its connection to the newly built power supply being prepared by ČEPS, he said. “Prague will thereby gain another important supply point for electricity transmission. Until now, this role has been served by three nodal substations: Řeporyje, Chodov and Malešice. Prague North will be the fourth. It will significantly increase the reliability of the distribution grid and enable increased capacity for connecting new connection points and renewable energy sources,” Hanzelka said. Construction and technical work is planned for next year, with commissioning scheduled for 2027. The project will also include the deployment of a new generation of dispatching system. In addition, PRE will continue next year with the refurbishment of the Měcholupy transformer station and other projects.

ČEZ Distribuce, the largest electricity distributor in Czechia, will invest CZK 18.7bn in its grids next year. This year, the company spent CZK 19.2bn on grid development. “The funds will primarily go towards connecting customer requests related to renewable energy sources and electricity storage facilities. Further expenditure will be required for digitalisation investments, particularly the installation of AMM smart meters and IT solutions,” ČEZ Distribuce spokeswoman Soňa Holingerová said.

Key projects next year will include the completion of the refurbishment of the Prosenice nodal transformer station, she said. The company will also begin construction of a new transformer station at the Mělník power plant site, while completion of construction of the new Nová Hospoda transformer station in Plzeň is also planned.

EG.D, which provides distribution in the South Bohemia and South Moravia regions, the Vysočina Region, and partly in the Zlín and Olomouc regions, expects investments slightly above CZK 9bn next year, a similar level to this year. “Of this, approximately CZK 7bn will go towards the modernisation, digitalisation, renewal and development of high- and low-voltage grids. We plan investments in very high-voltage networks of around CZK 1.8bn,” spokesman Lubomír Budný said.

In addition, the company will continue installing smart meters next year, as it has this year, with plans to invest more than CZK 900m in them, he said. EG.D also continues to plan investments in the modernisation of IT systems and strengthening cybersecurity. “The final amount of investment will depend, among other things, on how quickly we are able to obtain funding from the subsidy programmes currently being used,” Budný added.

According to the operators, investment in power systems will need to increase in the coming years. Looking ahead, they expect investment needs of up to CZK 40bn annually. The reason is the growing demands on grid development and management.