State to provide up to Kč 15 billion to strengthen transmission and distribution grids in Czechia

The state will provide up to 15 billion crowns in subsidies to strengthen transmission and distribution systems in Czechia. Grid operators will be able to draw on the funds for planned projects. If the funding is fully utilised, the capacity of domestic grids could increase by up to nine gigawatts (GW). Environment Minister Petr Hladík (KDU-ČSL) said this at a press conference today.

Four domestic energy companies will be eligible to draw the subsidies: state-owned transmission system operator ČEPS and distribution grid operators ČEZ, EG.D and PRE. The companies have almost a year and a half to submit applications.

According to Hladík, grid operators have already prepared individual projects to strengthen grid capacity. In the first phase, ten billion crowns will be allocated under the subsidy call, supporting projects that could increase the capacity of systems in the Czech Republic by 6 GW. Once these funds have been exhausted, however, the state is prepared to release a further five billion crowns for projects if necessary, Hladík said. With maximum use of the subsidies, grid capacity should therefore increase by up to 9 GW, according to the minister.

"These are huge figures for transmission and distribution systems," the minister said.

According to him, the money should help particularly in areas currently facing problems connecting new generation sources.

Industry and Trade Minister Lukáš Vlček (STAN) said Czechia has a long-standing investment deficit in energy infrastructure, which also affects energy prices. He therefore described investment in grids as crucial. A number of projects with the required project documentation or building permits are already prepared, he said. "ČEPS alone has projects worth ten billion crowns ready for next year to strengthen capacity," Vlček noted.

According to a study by Deloitte last year and calculations by the Czech Association of Regulated Electricity Companies (ČSRES), the modernisation of electricity grids in the Czech Republic required by the growth of green energy will require around 475.7 billion crowns by 2035. Grid operators are already increasing investment due to growing demands on the system; last year, it reached a record nearly 40 billion crowns, 38 percent more year on year.