Czech CHP auctions to end, ministry announces final one

Auctions for operating support for high-efficiency combined heat and power (CHP) will end next year. The Ministry of Industry and Trade (MPO) has now launched the final auction and does not plan to announce any further ones. According to the ministry, the support provided so far has met its stated objectives. MPO spokesperson Marek Vošahlík told ČTK.

Since last year, the ministry has organised several rounds of auctions to support CHP. According to the ministry, dozens of entities, including major energy companies, have secured operating support through them. Under the scheme, they receive an operating contribution based on the competitively bid reference auction price per megawatt-hour (MWh) generated.

"The notification for operating support for CHP expires at the end of this year. The ongoing auctions have met the stated objective, namely to replace around three gigawatts of coal-fired capacity with low-carbon sources and contribute to the modernisation of district heating," Vošahlík said.

According to him, the ministry is not currently preparing a new form of support.

In the currently announced auction, for which applicants can submit support applications from 19 December to 24 February next year, the ministry plans to support facilities with a total installed capacity of more than 910 megawatts. The auction is intended for new and modernised electricity and heat generation plants using natural gas, biomass, biogas or mine gas. Plants with capacity from one megawatt may be supported.

According to industry representatives, the potential for combined heat and power generation nevertheless remains high. "The potential for using cogeneration is still significant, and it is becoming increasingly clear that, thanks to its operational flexibility, cogeneration is truly indispensable in the energy mix," said Lukáš Dobeš, chairman of the COGEN Czech association.

Dozens of projects succeeded in previous auctions. These included, for example, the modernisation of Daniel Křetínský's EPH Group district heating plants in Opatovice and Komořany, the planned combined-cycle gas plant of semi-state-owned ČEZ in Mělník, and a new heat plant at Veolia Energie's facility in Ostrava-Třebovice. Small hydropower plants and a wind turbine also received support, for example.