Czech Supreme Audit Office: Modernisation Fund money for renewables goes exclusively to solar power

The Ministry of the Environment (MoE) and the State Environmental Fund (SEF) have used Modernisation Fund support exclusively for solar power plants. No money is left in the New Renewable Energy Sources in the Energy Sector programme, RES+, for other renewable sources, such as wind power plants. The Czech Supreme Audit Office said this today when announcing the results of its audit of Modernisation Fund money earmarked to support renewable energy sources.

The audit aimed to verify whether, particularly between 2021 and 2023, the Ministry of the Environment and the State Environmental Fund spent the money effectively and in accordance with regulations. CTK is seeking comment from the ministry.

“The audit examined 12 projects. According to the Supreme Audit Office, the recipients used the funding in line with the approved objectives,” the office said in a press release.

The office says that projects from four calls under the programme that it audited, with grants totalling 12 billion crowns and a total planned newly installed capacity of 2.2 gigawatts, will double the capacity of solar power plants in Czechia compared with 2022.

Last year, the government decided that 30 percent of energy consumed would come from renewable sources by 2030, the office notes. This means that solar power plants with a peak capacity of 10.1 gigawatts and wind power plants with a capacity of 1.5 gigawatts need to be connected to the grid.

The Supreme Audit Office found that the grants favour households, which receive more money, even though support for building solar installations at homes or public buildings delivers five times less installed capacity than support for businesses. The office also concluded that the Ministry of the Environment and the State Environmental Fund had provided insufficient incentives for investment in electricity storage. While the average grant per kilowatt of peak capacity for businesses was 5500 crowns, the average for households, municipalities and municipal organisations was as much as 29.700 crowns.

According to the Supreme Audit Office’s findings, the contribution of solar power plants on family homes and public buildings to the planned newly installed capacity is five times lower than that of business entities.

The office warns that if Modernisation Fund revenues, which depend on the price of emissions allowances, do not increase between 2025 and 2030, and the investments already approved under the RES+ programme go ahead, the fund will have no money left to support other renewable energy sources.

Regarding the distribution of support among business recipients, the Supreme Audit Office found that more than nine billion crowns—three quarters of the support from the audited RES+ calls—went to just 15 recipients, for 219 of the 725 projects supported in total. The largest recipient will receive 4.4 billion crowns for 49 projects.