European Commission approves €3.2 billion in support for electricity from cogeneration in Czechia

Brussels, 27 May (CTK correspondent) – The European Commission (EC) has approved a €3.2 billion (75 billion CZK) state aid scheme for Czechia to support electricity generation at new and modernised power plants that enable combined heat and power (CHP) generation. The Commission announced this today in a press release. The measure will contribute to the implementation of the Czech National Energy and Climate Plan and the European Green Deal, and help meet the EU’s energy efficiency target.

Czechia had previously informed the European Commission of its intention to support electricity generation at high-efficiency CHP plants. The state aid scheme is expected to remain in force until 31 December 2025. The scheme’s estimated budget is €3.2 billion.

„The aid may be granted to operators of new or modernised combined heat and power installations in the Czech Republic that meet the definition of high-efficiency cogeneration under the Energy Efficiency Directive,“ the Commission said. All technologies and projects are eligible, except those using solid fossil fuels, diesel or oil. The aid scheme is expected to deliver annual savings of approximately 93 million tonnes of CO2.

According to information from CTK, the Czech Republic has been intensively addressing the transformation of the district heating sector, the phase-out of coal and the transition to heating based on low-emission fuels since 2020. There is pressure to end the use of coal sooner.

„This aid is intended to help meet environmental targets through the efficient use of energy resources, increase energy efficiency and reduce CO2 emissions,“ a diplomatic source said.

According to the EC statement, the state aid is proportionate and will be granted through competitive, transparent procedures. „The positive effects of the aid outweigh any potential negative effects on competition and trade between Member States,“ the Commission added. On this basis, it also approved the Czech scheme under EU state aid rules.