Czech distributor ČEZ Distribuce to invest 18.7 billion Kč in grids next year, after spending over 19 billion Kč this year

ČEZ Distribuce, the largest electricity distributor in Czechia, will invest 18.65 billion Kč in its grids next year. The money will go towards upgrading and developing the distribution network, particularly connecting new sources of electricity, including batteries. Company spokesperson Soňa Holingerová informed CTK of the plans today. This year, the company spent 19.2 billion Kč on grid development.

According to the company, the largest share of this year’s spending went towards connecting new renewable energy sources to the grid. By the end of November, ČEZ Distribuce had connected 15.376 photovoltaic power plants with a combined installed capacity of 427 megawatts in its service area. The figures confirm the market’s gradual slowdown, with the number of installations down by more than 40 percent year on year. However, larger installations are accounting for a growing share.

This year has also seen the start of connections for electricity storage facilities. “In September, we began accepting applications to connect battery storage facilities. We expected strong interest, and that is what we saw. In just 12 days after applications opened, we received more than 1000 requests for reserved capacity totalling 7.5 gigawatts. By the end of November, applications already showed requests for battery capacity totalling 258 gigawatt-hours. Another significant share of investment went towards digitising our distribution grid,” said ČEZ Distribuce CEO Martin Zmelík.

Most applications to connect energy storage facilities have come from businesses: more than 61 percent are at the high-voltage level, and a further 36 percent at the very-high-voltage level.

The company said dozens of projects were aimed at strengthening and modernising the grids. The largest projects include the refurbishment of a power line dating from the 1980s between Neznášov and Nová Paka, the reconstruction of the substation in Havlíčkův Brod, upgrades to substations in Děčín and Chomutov, the reconstruction of the Milín substation, the rerouting of a power line near the Prague Ring Road, and grid reinforcement and modernisation, including upgrades to key nodes in Moravia.

Other distributors also made investments worth billions of crowns in their grids this year. EG.D is the second-largest electricity distributor in Czechia, providing distribution services in the South Bohemian and South Moravian regions, the Vysočina Region, and parts of the Zlín and Olomouc regions. This year, the company plans to spend 8.9 billion Kč on developing its network, the same amount as last year.

Pražská energetika operates the electricity distribution network in the capital. This year, it spent more than 2.5 billion Kč on developing and upgrading its grids. The money went mainly towards strengthening high- and low-voltage cable networks, developing optical infrastructure, and installing remotely controlled and monitored distribution substations. CTK is checking companies’ planned investments for next year.

Grid operators say investment in electricity networks will need to increase in the coming years. They expect annual investment needs to reach as much as 40 billion crowns in the future, driven by growing demands on grid development and management.