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Solid biomass in the Czech Republic

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 RES scheme 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 guaranted 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.

 

RES are also promoted by the National Programme for the promotion of Energy saving and the Use of Renewable Energy Sources. One of the subprograms, the Efekt, is focused on the renewable electricity generation. The operational framework for the Efect is approved on a yearly basis. In 2011, for example, the Efekt promotes only small hydro-power generation with a capacity of up to 10 MW.

 

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. This programme is funded by the European Regional Development Fund.

 

Another programme is Operational Programme Environment which provides investment grants from the EU Cohesion Fund.

 

Electricity generated from renewable energy sources is a subject to an exemption from the tax on income from renewable electricity, too.

 

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. The contribution of solid biomass according to the NREAP projection is foreseen to be 105,645 TJ or 57.6% of all RES in 2020.

 

Renewable heat and electricity: solid biomass

 

Solid biomass is supported through several programmes:

 

1) Environmental Fund of the Czech Republic is applying subsidies through the Green Saving Programme. The Programme focuses on support for heating installations utilising renewable energy sources (low-emission biomass-fired boilers, efficient heat pumps and solar thermal collectors) and also on energy savings in reconstructions and new buildings. The Green Savings support has been set up so that the funds can be used throughout the period from the programme's launch until 31st of December 2012.

Programme supports the replacement of solid and liquid fossil fuel-fired sources and electric heating with efficient low-emission biomass sources with a specific performance factor. Only new efficient biomass sources with low emissions of local pollutants into the atmosphere are supported. The required minimum efficiency of heat output is 82%. Installations of biomass sources with automatic fuel supply are granted a higher subsidy than biomass sources with manual fuel supply.

For biomass sources installed in new buildings, the calculated specific annual heat demand for heating must not exceed 55 kWh per square metre of the floor area. This requirement does not apply to buildings completed before 1st of January 2011.

The support is allocated in the form of a subsidy as a fixed amount to purchase a new source, accessories and connection to the heating system. Only biomass boilers in family and multiple-dwelling houses are eligible for a subsidy.

 

 Table 1: The level of support for biomass boilers

 

Supported Measures

Subsidy Unit

Subsidy Amount

Family Houses

C.1 Biomass-fired source with manual fuel supply without storage tank

CZK

 

50,000

 

C.1/C.2 Biomass-fired source with manual fuel supply with storage tank of required volume

CZK

 

80,000

 

C.1/C.2 Biomass-fired source with automatic fuel supply

CZK

 

95,000

 

Multiple-Dwelling Houses

C.1/C.2 Biomass-fired source

CZK/dw.u.*

25,000

 

 

 

 

 

 

 

 

 

 

 

*dw.u. - dwelling unit

 

2) The use of Solid biomass is supported under Operational Programme Environment - Axis 3 "Sustainable Use of Energy Sources". The programme offers investment subsidies for construction and reconstruction of heat sources using RES for construction and reconstruction of electricity power plans burning biomass (solid, gaseous or liquid) and for installation of cogeneration plants using solid biomass (such as classical steam cycle, the ORC, biomass gasification + gas engine, etc.). The subsidy must not exceed 20% of the total project costs. The maximum grant per electricity power plants may reach 50 million CZK. The maximum grant per cogeneration plants using solid biomass may reach 100 million CZK.

There are two separate calls: one is for large projects (open till 30th of June 2011), the second is for individual projects (open from 1st of March 2011 till 30th of April 2011). Only the public and the municipality sector are eligible for investments support.

 

3) The ECO-ENERGY programme is part of the Operational Programme Enterprise and Innovations (2007-2013)- PRIORITY AXIS 3 – “EFFECTIVE ENERGY”. Under this programme entrepreneurs (small, medium-sized, large enterprises) can apply for investment grants or low-interest loans for RES projects. The minimum subsidy is 500,000 CZK. The maximum subsidy is a certain percentage of the eligible costs. The percentage differs according to region and must not exceed 100 million CZK. In general small enterprises are entitled to 50%, medium-sized enterprises to 40% and large enterprises to 30% of the eligible costs. Enterprises in Regions of Strední Morava, Severozápad, Strední Cechy, Moravskoslezsko, Severovýchod, Jihovýchod are entitled to additional 10 percentage point higher support than usual. In general solid biomass is eligible to the support under this programme; however all depends on the conditions set out by a given call for applications. At the moment, all calls under Operational Programme "Enterprise and Innovations – ECO-ENERGY Programme" are closed.

 

4) The electricity production from solid biomass is supported by a guaranteed feed-in tariff and premium ("green bonus") paid on top of the regular electricity price achieved at the market. The Energy Regulatory Office’s Price Decision No. 2/2010 of 8 November 2010 (caption 1.5) is setting new values for the feed-in tariff and green bonus for electricity from solid biomass. The feed-in tariff and green bonus depend on the firing and co-firing category and the date of commissioning. The guaranteed feed-in tariff is set from 1.4 to 4.58 CZK/kWh. The green bonus is set from 0.49 to 3.61 CZK/kWh, see Table 2.

 

Table 2: Feed-in tariff and green bonus for electricity generation from biomass

 

Feed-in Tariff  CZK/MWh

Green Bonus  CZK/MWh

Electricity generation by firing category O1 biomass only in new electricity generating plants or generating units commissioned between 1 January 2008 and 31 December 2011

4,580

3,610

Electricity generation by firing category O2 biomass only in new electricity generating plants or generating units commissioned between 1 January 2008 and 31 December 2011

3,530

2,560

Electricity generation by firing category O3 biomass only in new electricity generating plants or generating units commissioned between 1 January 2008 and 31 December 2011

2,630

1,660

Electricity generation by firing category O1 biomass only for

generating units commissioned before 1 January 2008

3,900

2,930

Electricity generation by firing category O2 biomass only for

generating units commissioned before 1 January 2008

3,200

2,230

Electricity generation by firing category O3 biomass only for

generating units commissioned before 1 January 2008

2,530

1,560

Electricity generation by firing category O1 biomass only in

existing generating plants

2,830

1,860

Electricity generation by firing category O2 biomass only in

existing generating plants

2,130

1,160

Electricity generation by firing category O3 biomass only in

existing generating plants

1,460

490

Electricity generation by co-firing category S1 biomass and fossil fuel mixtures

 

1,370

Electricity generation by co-firing category S2 biomass and fossil fuel mixtures

 

700

Electricity generation by co-firing category S3 biomass and fossil fuel mixtures

 

10

Electricity generation by parallel firing of category P1 biomass and fossil fuels

 

1,640

Electricity generation by parallel firing of category P2 biomass and fossil fuels

 

970

Electricity generation by parallel firing of category P3 biomass and fossil fuels

 

280

 

Future programme changes expected

A renewed legislation on renewable energy is expected in near future.

 

Sources

-        The Energy Regulatory Office’s Price Decision No. 2/2010 of 8 November 2010 Laying down support for electricity generation from renewable energy sources, combined heat & power and secondary energy sources

http://www.eru.cz/user_data/files/legislativa/english/notice_458/CR_2_2010_en.pdf

-        National programme for the energy management and the use of renewable sources of energy for 2006 – 2009 (http://www.mpo.cz/dokument12937.html)

-        No. 180/2005 Coll, ACT of 31 March 2005 on the promotion of electricity production from renewable energy sources and amending certain acts
http://www.czrea.org/files/pdf_en/zakony/RES_act_english.pdf

-        National Renewable Energy Action Plan of the Czech Republic

http://ec.europa.eu/energy/renewables/transparency_platform/doc/national_renewable_energy_action_plan_czechrepublic_en.pdf

-        Green Saving Programme

http://www.zelenausporam.cz/sekce/582/about-the-green-savings-programme/

-        Operational Programme Environment

http://www.opzp.cz/soubor-ke-stazeni/13/4189-id_2008_11_20_final_en.pdf

-        ECO-ENERGY programme

http://download.mpo.cz/get/30833/43324/519735/priloha013.pdf

 

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Last update: December 2011


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