Czech Republic

Czech Republic

Czech governement plans to subsidies scheme

CZECH REPUBLIC: The Czech government plans to end subsidies for new renewable installations from next year, according to a draft law up for parliamentary approval.

Czech Republic parliament... draft changes to renewables framework
Czech Republic parliament... draft changes to renewables framework

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At the end of 2012, the Czech Republic had a total of 260MW with 43MW of this installed last year. However, this year there have been rumours the government is planning to dismantle its renewables support framework.

Under the latest round of planned cuts, wind farm operators will receive subsidies if they secure a building permit before the law comes into force and start generating electricity by 31 December next year. Existing installations will not be affected.

A big change to the renewables support system took effect at the beginning of 2013 when the feed in tariff (FIT) was abolished for all renewable projects over 100kW, and for hydro power projects exceeding 10MW.

Under the old system, the obligation to buy electricity generated from renewable sources lay with the high voltage or distribution network operators, but they have no licence to trade in electricity and so could only use the power to balance the electricity system.

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