Czech regulator grants licence to largest Czech battery. Licensed capacity passes first milestone

Electricity storage licences are now held by battery storage facilities with a combined capacity of more than 121 MW, over three times the capacity recorded at the beginning of June. The largest individual licensed project is now BESS Vraňany, with a capacity of 20,448 MW. Although larger storage facilities have also been commissioned, they are still awaiting their licences. 

At the turn of May and June, the Energy Regulatory Office (ERÚ) recorded nine active electricity storage licences with a total capacity of 39,705 MW. Over the following three months, the number of facilities on the register rose to 30 and licensed capacity increased by more than 80 MW.

Further data show which projects have already passed the administrative licensing stage, how many applicants are currently awaiting a licence, and how rapidly battery economics could change in the day-ahead market and in planned capacity auctions.

Vraňany surpasses previous licensed projects

The largest August addition was BESS Vraňany in the Central Bohemian Region, which, according to the ERÚ register, has a capacity of 20,448 MW and an operational start date of 20 August 2026.

The project has thus surpassed the previously largest licensed standalone batteries, which included EC Velká Bíteš with a capacity of 12,45 MW, BESS Vlkoš with 12,9 MW and a storage facility in Ostrava with 13,2 MW.

The regional distribution of projects has also expanded significantly. In addition to facilities previously licensed in Kosořín, Ostrava, Kutná Hora and Velká Bíteš, larger projects have been added in Břeclav, Zliv, Vraňany and other locations in southern Moravia, southern Bohemia, Vysočina and central Bohemia.

August data alone show an increase in licensed capacity of 41,72 MW, the highest monthly figure to date.

Commissioning does not yet mean a licence

The rapid growth in licensed capacity does not mean that the ERÚ register captures all completed batteries. For example, on 18 August, SUAS GROUP announced the launch of BESS Lipnice in the Sokolov area, with a capacity of 57 MW and 120 MWh. However, this project has not yet received an ERÚ licence.

A similar time lag is apparent for MND projects. In April, the company announced the commissioning of a battery in Břeclav with a capacity of 12 MW and installed energy capacity of 31 MWh. The ERÚ register now includes BESS Břeclav, for which the licence records an operational start date only on 7 August. Similarly, MND reported a new storage facility in Hodonín. This facility has not yet received a licence either.

The difference between an announced launch, the physical completion of a project and the granting of a licence therefore complicates simple comparisons of capacity actually in operation. A further complication is that where electricity storage facilities form part of an electricity generating plant, they may not require a business licence. Nevertheless, a licence remains an important part of a project, as it confirms that the facility can be operated at full scale in compliance with the Energy Act.

A total of 33 entities are currently awaiting a licence (25 entities already hold one). For licence applicants, the ERÚ does not disclose which electricity storage facility is involved.

Day-ahead market price spreads may offer an attractive opportunity

The growth in battery capacity comes at a time when the Czech day-ahead market offers wider price differences than before the energy crisis. The daily spread between the minimum and maximum price is an indicative measure of the trading opportunity for batteries, rather than an automatically achievable return.

Batteries can particularly benefit from a combination of midday lows during high solar generation and evening peaks. However, their returns are reduced by charging costs and, over a longer time horizon, especially by competition from further storage facilities. The Australian experience also shows that rapid growth in battery capacity can quickly dampen this opportunity: after large-scale battery capacity exceeded 9 GW, the average difference between charging and discharging prices fell from 342 to 51 AUD/MWh.

Capacity auctions may provide another revenue source, but there is a catch

Alongside trading flexibility, BESS operators are also monitoring the planned Czech capacity mechanism. In the first auctions, the state is expected to procure up to 8,6 GW of capacity, with the results of the main auction due at the end of October.

Batteries will be able to participate in the auctions, but the terms are not unequivocally favourable for them. Hospodářské noviny reported that participation in the mechanism is to be linked to the loss of relief on payments for maximum offtake capacity and an obligation to repay part of the capacity payment when the market price exceeds 124,60 EUR/MWh.