Czech ministry launches first auctions for combined heat and power

The Ministry of Industry and Trade (MPO) has launched the first auctions for operating support for generation from new or modernized combined heat and power (CHP) plants. The ministry announced this today. This is the first subsidy call this year under a programme on which the state plans to spend a total of 75 billion crowns this year and next. The money will go primarily towards modernizing domestic district heating plants.

“This support is key to decarbonizing Czech district heating and builds on our successful efforts to secure its approval by the European Commission,” said Minister of Industry and Trade Jozef Síkela (STAN).

The ministry will gradually announce subsidy calls over this year and next, he said. The aim is to support power generation facilities with a total installed capacity of 3090 megawatts (MW). According to Síkela, the new sources should help replace coal-fired sources.

Under the auction announced today, the state will support generation from high-efficiency combined heat and power plants with an installed capacity of more than one megawatt. The new or modernized power plant must be commissioned by the end of 2029 at the latest.

The ministry has set the total installed electrical capacity to be auctioned at 1280 MW. Eligible fuels will include biomass, biogas and mine gas. For natural gas, projects must ensure that it can be replaced in the future by renewable or low-carbon gases, by 2050 at the latest.

The European Commission approved this spring state support for electricity generation from new and modernized power plants that enable combined heat and power generation. The measure is intended to help implement the Czech National Energy and Climate Plan and the European Green Deal, and meet the EU’s energy efficiency target.