Czech government approves electricity storage rules to improve grid management and development

The government today approved a draft amendment to the Energy Act introducing rules for electricity storage and aggregation. Industry and Trade Minister Jozef Síkela (STAN) told the Chamber of Deputies after the cabinet meeting. According to the Ministry of Industry and Trade (MPO), the amendment should improve the management of power balance in the grid and, for example, allow customers to adjust their consumption according to current energy prices. Czech legislation has so far lacked provisions governing these conditions, which has hampered development.

According to the MPO, the development of storage—meaning the time-shifted delivery of generated electricity to the grid—is essential, particularly to increase the grid’s resilience to operational fluctuations, integrate renewable energy sources into the grid and support investment.

“The amendment responds to an update of the electricity market rules, and therefore introduces fundamental changes to electricity storage, flexibility and aggregation. This is very important so that consumers can adjust their consumption in the future according to market energy prices. That means they can use electricity when prices are not at their highest and respond better to consumption peaks, which are naturally associated with higher energy prices,” Síkela told the Czech News Agency on Tuesday.

According to Síkela, electricity storage and aggregation will also make it possible to reduce the cost of balancing services, which could eventually lower the regulated component of energy prices. “It will make it possible to reduce the volume of purchases of these services, which should ultimately be reflected in energy prices,” Síkela said.

Other changes also focus on consumer protection. For example, consumers will be able to withdraw from fixed-price contracts if a supplier’s procurement policy breaches the rules. According to Síkela, this will prevent cases such as the collapse of Bohemia Energy.

In Czechia, commercial use of large-scale energy storage systems remains highly limited. Experts say the problem so far has been an inadequate legal framework for operating such facilities.

Czechia is several years behind in adopting legislation on energy storage and flexibility aggregation, which is required under an EU directive. According to the AKU-BAT CZ Association for Energy Storage, the country is lagging behind its neighbours and could also face sanctions as a result. The association says the lack of legislation is hindering the wider development of renewable energy sources and community energy.