Windpower Monthly rating 2.5/5
Our rating is based on a combination of project pipeline, political and policy support, investor confidence and structural readiness of the country in terms of grid infrastructure, permitting process and local supply chain.
Forecast of installed and operating wind power capacity based on the latest statisitics and measured against the Windpower Intelligence database.
The political climate around renewables has not been particularly favourable in recent years. The country remains largely dependent on coal and nuclear for electricity generation. The procedure of establishing a new wind power project is quite cumbersome and it is further complicated by the the best sites being located in restricted Natura 2000 areas.
Many of the private sector entities who have invested in the Czech wind power sector in the past (especially until 2010/2011) have other markets in which to operate, where the political climate and public attitude are more favorable. Should that change, however, Czech market seems to have significant untapped capacity for wind power plants.
There are some issues with grid capacity constraints, particularly for larger projects. Such constraints, however, seem more related to legal restrictions rather than lack in infrastructure.
CZECH REPUBLIC: The Czech Republic's wind sector is in a sorry state, and there is doubt as to whether any new turbines will be installed this year.
EUROPE: As a growing number of wind-energy investors have targeted central and eastern Europe (CEE) for growth, regulatory uncertainty in key markets such as Poland and Romania has complicated the prospects for financing and could slow down expansion in these regions.
CZECH REPUBLIC: The general climate for wind energy in the Czech Republic is not encouraging.
CZECH REPUBLIC: There are fears that the required increase in growth will not be met. By the end of 2010, the Czech Republic was falling behind the schedule of its National Renewable Energy Action Plan (NREAP), with 215MW installed wind capacity instead of the hoped-for 243MW. To reach its 2020 target of 743MW by 2020, it had set a modest annual increase of 50MW. But annual installations have only once exceeded this level, when 62MW was added in 2007.
CZECH REPUBLIC: The Czech National Renewable Energy Action Plan was due to be presented to the new government for approval within four weeks of the republic's general election at the end of May 2010, along with a draft new energy law, a ministry of industry and trade spokesman says.
CZECH REPUBLIC: Senvion has secured a 13-turbine order and 15-year service contract from independent power producer EEH.
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: Investment in wind and other renewables in the Czech Republic suffered a major blow at the start of the year when parliament's upper house approved a draft law that undermines the renewables support mechanism included in all existing contracts between plant operators and the Czech grid companies. The law is now awaiting approval by the lower house to become final.
Special Report Europe 2020 - New member ambition - Investors move into emerging markets - Czech policy likely to keep renewables to a minimum
The Czech Republic target for renewables by 2020 is to raise its share in the energy supply mix from 6.1% to 13%, but there is considerable scepticism about whether this will be achieved. The target means around 50 TWh of a total 353.6 TWh forecast demand in 2020 must come from renewables, it says. Wind will play only a limited role, according to the country's new draft state energy policy.
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