General
The
National Energy Strategy adopted by the Czech Parliament in 2004 defines
long-term energy goals with fundamental priorities on security of supply and
sustainable development.
Targets
of the Czech energy policy, defined in the National Energy Strategy, concerning
renewable energy sources (RES) are to increase: (a) RES share in the primary energy balance
to 15.7 % by 2030, (b) RES share in electricity production to 16.8 % by
2030.
A main support mechanism for
electricity production in CZR is feed-in
scheme which was introduced in 2005 by the Act on the Promotion of
Electricity Produced from Renewable Energy Sources No.180/2005. RES electricity
is promoted by a guaranteed feed-in tariff and premium ("green
bonus") paid on top of the regular electricity price achieved at the
market. The guaranteed feed-in tariff and green bonus apply to all technologies
used to generate renewable electricity, except for the very large scale wind
power (>20 MW), RES electricity generated outside the Czech Republic and since
2011 for on ground PV systems. In general the tariff is granted for 20 years. A
change from the premium to the feed-in tariffs is possible annually.
RES
are also supported through investment grants
and subsidies:
(1)
The National Programme for the promotion of Energy
saving and the Use of
RES
consists of several sub programmes. One of the
subprograms called EFEKT provides
subsidies for educational activities, energy consulting, investments and pilot
project. Special focus is on introduction of energy-saving measures in
production, transmission and distribution of energy and on increased use of RES.
The operational
framework for the programme is approved on a yearly
basis. Subsidies are granted on the basis of a selective
procedure. In
2011, for example, the programme promotes
small scale landfill and biodegradable municipal gas units as well as small
hydro-power generation plants with a capacity of up to 10 MW. The total budget
of the programme in 2011 is 30 million CZK. The maximum subsidy for project can
not exceed 40% of eligible investment with upper limits 3 million CZK.
(2)
The ECO-ENERGY
programme is a part of the Operational Programme Enterprise and Innovations
and gives entrepreneurs the opportunity to apply for investment grants or
low-interest loans for RES projects. The programme supports:
-
construction of production and distribution facilities
of electricity and thermal energy produced from renewable and other sources,
-
reconstruction of existing production facilities for
the use of renewable energy sources,
-
construction
of facilities for the production of briquettes and pellets and other RES.
This programme is funded by the European Regional
Development Fund.
(3)
Another programme is Operational Programme Environment 2007-2013- Axis 3
"Sustainable Use of Energy Sources", which provides investment grants
from the EU Cohesion Fund. A total budget amounts 673 million EUR. The
programme offers investment subsidies for the realization of renewable energy
and energy saving projects mainly for the public and the municipality sector.
Grants up to 85% of project investment are eligible, and a project’s minimum
amount of eligible investment has been set at 0.5 million CZK.
(4)
The GREEN SAVING programme offers grants to citizens
for passive house constructions and to install or replace facilities that use
RES for heating and hot water preparation. The programme is financed from the
sale of emission credits under the Kyoto Protocol on CHC. The overall
anticipated allocation of the programme is up to 25 billion CZK by 2012.
There
are as well some fiscal measures
that stipulate RES:
In
CZR some RES activities are a subject to an exemption
from the tax on income. Income from small hydro plants (up to 1 MW),
wind power plants, heat pumps, solar installations, biogas
and biomass installations, installations generating biologically degradable
substances can be exempted from income tax.
Land
serving solely for the purpose of improving the environment (RES projects meet
this criteria) are exempted from the
tax on land. Buildings, in which a fossil fuel heating system was
replaced by a RES system using solar, wind, geothermal or biomass, are exempted
from the tax on buildings for a period of five years from the year that change
occurred.
Since
2008 pure biofuels are exempted from any excise tax. For fuels with a high share of
biofuels, the biofuel
component is exempted from excise tax.
Quota obligation and prerequirements
for the share of bio-content in transport fuel is a main support measure for biofuels. Another measure to support biofuels
is an exemption from excise tax. There is as well an aid for the cultivation on
energy crops of 45 EUR per hectare.
Renewable energy projections according to the
National Renewable Energy Action Plan for the Czech Republic
Mandatory targets set by the Directive
2009/28/EC of the European Parliament and of the Council of 23 April 2009
on the promotion of the use of energy from renewable sources (RES) indicate 13%
share of RES in the gross consumption of final energy and at least 10% share of renewable energy in final consumption of energy
in transport by 2020.
The RES target according to the National
Renewable Energy Action Plan (NREAP) of the Czech Republic is to achieve 13.5%
RES share of the final energy consumption (4,382 ktoe) in 2020. According to the NREAP the share of biofuels
and other renewable fuel in total energy consumption in transport in 2020 is
10.44%.
Renewables in transport: biofuels
The Directive 2003/30/EC of 8 May 2003 on the
promotion of the use of biofuels or other renewable
fuels for transport aims at promoting the use of biofuels
or other renewable fuels to replace diesel or petrol for transport purposes in
each member state. A national indicative target of biofuel
share, set by the Directive, is 5.75% of all petrol and diesel for transport by
31 December 2010.
In CZR quota obligation
and prerequirements for the share of bio-content in
transport fuel is a main support measure for biofuels.
In 2006 the Czech government
adopted “Resolution No. 1080” about the minimum quantity of biofuels
in the range of motor-vehicle fuels, which was the basis for the amendments to
the Act No 86/2002 Coll. on clean air protection. Companies distributing petrol and diesel
transport fuels on the market of the Czech Republic
have to ensure that motor-vehicle fuel contains at least a minimum
proportion of biofuels. In accordance to the Act No 86/2002 and its amendment No 172/2010 (adopted in
2010) the minimum values of biofuels blended with fuel have been set:
-
as of 1st of January 2008, 2% of the total amount of
motor-vehicle petrol fuel;
-
as of 1st of January 2009, 3.5% of the total amount of
motor-vehicle petrol fuel;
-
as of 1st of June 2010, 4,1%
of the total amount of motor-vehicle petrol fuel (a technical standard sets the
maximum limit at 5.0%) and 6.0 % of the total amount of motor vehicle diesel
fuel (a technical standard sets the maximum limit to 7.0%).
For the year 2011 no new requirements were set
yet.
Another measure to
support biofuels is an exemption from excise tax. Since
2008, when an amendment No. 37/2008 (to the Act on Excise Tax No. 353/2003) was
adopted, pure biofuels have been exempted from any
excise tax. For fuels with a high share of biofuels,
the biofuel component is exempted from excise tax. The
excise duty on diesel containing more than 30% biodiesel from RME is 6.866 CZK
per litre. The excise duty on common diesel (diesel containing max 5 % rapeseed
methyl ester) is 9.95 CZK per litre, thus resulting in a rebate of CZK 3.084
per litre.
There is as well an aid for the cultivation on
energy crops. The Czech government began providing subsidies for the
cultivation of energy crops in 2007. The support for cultivation energy crops is
45 EUR per hectare. This support is regulated by Governmental Order on
conditions for the provision of a payment for the cultivation of energy crops
No 80/2007. A land with an area of at least one hectare must be used for the cultivation
of energy crops. Energy crops must be grown on the land as the main crop in the
corresponding year and must be grown specifically for energy use.
Future programme changes expected
A new Clean Air Act is in progress.
Sources
-
Long-term
strategy for the use of biofuels in the
-
Multi-year
programme of supporting further utilization of biofuels in transportation, (http://eagri.cz/public/eagri/en/environment/renewable-energy-sources/)
-
Program
for Rural Development 2007 – 2013
(http://eagri.cz/public/eagri/en/subsidies/rural-development-programme-2007-2013/)
-
Act
No 86/2002 Coll. on clean air protection
-
Government
Order No 66/2005 Coll. on the minimum amount of biofuels
or other fuels produced from renewable resources in the assortment of
motor-vehicle petrol and diesel fuel on the Czech market
-
RE
SHAPING - Renewable Energy Policy – Country profiles, 2011 version
Interactive
EurObserv’ER Database
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Last
update: June 2011
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