Community energy in Czechia is in its early stages, experts disagree on its benefits

The introduction of energy communities in Czechia is still at a very early stage, but experts have yet to agree on their practical benefits. Some say expectations are greater than what reality will deliver. They point mainly to economic factors, noting that sharing may not be worthwhile. Other industry representatives, by contrast, see great potential in community energy, which could lead to greater energy self-sufficiency. This is according to comments from experts. The establishment of energy communities was introduced by last year’s amendment to the Energy Act, and the first could start operating in the middle of the year.

„It is important to carefully assess the economic, social and subjective reasons for taking part in community electricity sharing,“ emphasized UCED commercial director Václav Skoblík.

According to him, community energy has the potential to bring positive changes to the energy sector, but he also sees a number of problems. He cited the allocation of costs among community members as one of the key issues. According to Skoblík, residents with higher consumption will benefit more, at the expense of those with lower consumption. Community energy is entirely unsuitable for industry, he added. „Electricity generated by photovoltaic panels does not meet the needs of industrial operations. In addition, distributing energy outside generation hours can be problematic. When solar power plants generate electricity around midday, electricity prices are very low or even negative,“ he explained.

Skoblík also sees problems arising from unpredictable surpluses when solar panels are used for self-consumption, especially in summer. „Surplus electricity may fetch a low price on the market and could pose an economic problem in the long term. The price for surplus electricity will certainly be much lower than the price of electricity supplied directly to the distribution system,“ Skoblík said.

Jan Krčmář, executive director of the Solar Association, also has doubts about the launch of community energy in Czechia. He said expectations are greater than the actual benefits will be. He sees potential in municipalities and their buildings, but is rather sceptical about other communities for now. „I don’t understand why anyone would share electricity with their neighbours when they can sell the electricity they generate themselves to a distribution network operator or an energy trader.

Representatives of the modern energy sector, by contrast, say community energy has great potential. „Sharing electricity from their own zero-emission sources will contribute in the long term to greater energy self-sufficiency and, in turn, lower electricity costs,“ Martin Ander, a community energy expert at the Modern Energy Union, said recently. Laura Otýpková, an energy law expert at the Frank Bold organisation, said Czechia could see a boom in community energy next year. According to Hnutí Duha, hundreds of entities are currently considering establishing an energy community. Jiří Krist, a UKEN council member and chair of Enorkom Opavsko, said that by 2030 up to a third of municipalities and half of all citizens could be involved in some form of community energy.

However, everyone agrees that the work of introducing energy communities in Czechia will not end with the adoption of the amendment to the Energy Act. Some experts say the amendment still contains flaws that could hinder the establishment of communities. They are also calling for the prompt establishment of further conditions for energy communities to operate.