State support for renewable energy likely to decrease, Chamber of Deputies approves restrictions

Support for renewable energy sources provided from the state budget may be set to decrease, according to restrictions in the government’s amendment to the Energy Act approved on Wednesday in the Czech Chamber of Deputies. The restrictions were originally intended to introduce legislation for rules for electricity storage, and will likely introduce a more precise and individual evaluation of the profitability of solar power plants with an output of over 30 kilowatts put into operation in 2009 and 2010. For example, their users will have to inform the market operator by December 15th every year whether they will be entitled to support in the following year.

The restrictions still have to be approved by the Senate and signed into law by the president. The Czech state wants to allocate 8.5 billion crowns for renewable sources next year, as it did this year. The opposition ANO party disagrees with the reduction of state support, as do representatives of renewable energy providers. As a result, some investors already want to begin arbitration with the state on the matter. Finance Minister Zbyněk Stanjura said in October that he was not concerned about possible arbitration. According to him, all measures are in accordance with European and Czech legislation. On Wednesday, he emphasised that the state does not want to change the rules, but only introduce consistent control.