Czech subsidies for supported energy sources totaled CZK 25,3 billion last year, the lowest since 2010

Last year, the state provided subsidies of 25,3 billion crowns to support the operation of supported energy sources. This was the lowest amount since 2010, almost 14 billion crowns less than the year before. Even so, last year’s subsidies were CZK 2,65 billion higher than originally estimated. This is according to a draft resolution by the Ministry of Industry and Trade (MPO), reported today by Ekonomický deník.

In previous years, subsidies ranged from 39 billion to 46 billion crowns. The amount is calculated based on the market price of electricity. The higher the price, the less money needs to be paid to owners of generation facilities.

The electricity market operator (OTE) had originally expected subsidies of around 22,8 billion crowns for last year. „The main reason the market operator’s revenues exceeded expectations was the situation on energy markets, market prices and changes in those prices during 2023 compared with the forecast, as well as a reduction in total electricity consumption,“ the Ministry of Industry and Trade said.

Once again, owners of photovoltaic power plants received most of the subsidies last year, with more than 24 billion crowns. This represents a year-on-year decrease of approximately 3,4 billion crowns. Operators of other sources also received less than the year before. The state spent 382 million crowns on hydropower plants, 363 million crowns on biogas plants, 223 million crowns on biomass and 110 million crowns on wind power plants. Last year, the state paid no support to heating plants for high-efficiency combined heat and power generation (CHP).

There are currently more than 191.000 photovoltaic power plants connected to the grid in the Czech Republic, with a capacity of 3,94 gigawatts. While solar energy development boomed over the previous two years, it has slowed this year. In the first half of this year, 24.000 new photovoltaic power plants were commissioned, 21.200 fewer than in the same period last year. Installed capacity nevertheless fell by just 0,5 percent year on year to 484 megawatts (MW), as the average size of newly connected plants continues to increase.