Czech Republic

The Czech Republic has adopted a feed-in tariff system in 2001, which, in 2005, has been substituted by the Act on Promotion of Use of Renewable Sources Law No. 180/2005 (English) and separat price regulations.

 

Summary

According to the Czech Act on the Promotion of Use or Renewable Sources, producers may choose between a guaranteed feed-in tariff and a premium ("green bonus") paid on top of the regular electricity price achieved on the market. The feed-in tariff and green bonus regulation applies to all technologies used in the generation of renewable electricity, except for very large scale wind power (>20 MW) and and for electricity generated outside the Czech Republic.

Electricity producers may change their mind at the earliest within one year after having chosen an option and having used the payment system in question. If the producer has chosen promotion through the feed-in tariff, he shall conclude a contract with the grid operator. If the RE electricity producer has chosen promotion through the bonus, he shall prove to the grid operator that he has concluded a contract with an electricity market participant (e.g. a supplier) (chapter 1 § 4 Act Nr. 180/2005). The tariff or the bonus is paid by the grid operator.

The Energy Regulatory Office (ERO) determines the purchase price for green electricity for the subsequent year in advance for each renewable energy source for both schemes, and therefore purchase prices are not stated directly in the text of the act, but in separate regulations. However, the feed-in tariff level cannot be reduced by more than 5% each year. The green bonus is set each year taking into account market needs and development. When calculating the feed-in tariffs and the green bonuses, the Energy Regulatory Office takes into account the different costs of purchase, connection and operation of the individual system types and the development of different systems over time. When calculating the amount of the green bonuses, the Office also bears in mind that the sale of renewable-energy-sourced electricity on the market carries a higher risk.

The 2008 tariffs and boni were set at the following levels:

Legal analysis

There currently is no legal analysis of this law.  If you are a lawyer from the Czech Republic, and interested in submitting an analysis, or providing more up-to-date information about the current status of the renewable energy policy, we would be happy to hear form you. Contact us

EC review and assessment

Read a summary of the European Commission’s 2005 review of the Czech Republic’s renewable electricity policies and of its 2007 assessment of the Czech Republic’s progress in meeting the target set out in Directive 2001/77/EC.

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