Department of International Relations and European Studies1
Renewable Energy Sources Development
in the Czech Republic and Central Europe
doc. PhDr. Tomáš Vlček, Ph.D.
tomas.vlcek@mail.muni.cz
Department of International Relations and European Studies2
Contents
̶ EU27 Situation: Targets and Reality
̶ CE Countries: Targets and Reality
̶ RES Development Experience in CE (V4)
̶ Summary and New Targets
Department of International Relations and European Studies3
EU27 Situation
̶ Renewable Energy Directive 2009/28/EC
̶ part of EU 2020 Energy Strategy from 2010
̶ 20% share of energy from renewable sources by 2020
̶ 10% share of energy from renewable sources in transport by 2020
̶ to achieve a 20% improvement in energy efficiency by 2020
̶ mandatory national targets
̶ National targets for CE countries
̶ Czech Republic 13% (6.1% in 2005) own target 14% (revised in 2013)
̶ Slovak Republic 14% (6.7% in 2005)
̶ Poland 15% (7.2% in 2005)
̶ Austria 34% (23.3% in 2005)
̶ Hungary 13% (4.3% in 2005) own target 14.65%
̶ Germany 18% (5.8% in 2005)
Department of International Relations and European Studies4
EU27 Situation
̶ In 2017 renewable energy represented 17.5 % of energy consumed in the EU
̶ National targets for CE countries‘ share of RES on gross final energy consumption in 2019
̶ Czech Republic 13% (6.1% in 2005) 15.2%
̶ Slovak Republic 14% (6.7% in 2005) 16.9%
̶ Poland 15% (7.2% in 2005) 12.2%
̶ Austria 34% (23.3% in 2005) 33.6%
̶ Hungary 13% (4.3% in 2005) 12.6%
̶ Germany 18% (5.8% in 2005) 17.4%
̶ How many countries will fail to comply with the Directive?
Department of International Relations and European Studies5
EU27 Situation
January
2021 data
Source:
Eurostat
https://ec.euro
pa.eu/eurostat
/statistics-
explained/
Department of International Relations and European Studies6
EU27 Situation
January
2022 data
Source:
Eurostat
https://ec.euro
pa.eu/eurostat
/statistics-
explained/inde
x.php?title=Re
newable_ener
gy_statistics
Department of International Relations and European Studies7
EU27 SituationPrimary production of energy from
renewable sources, EU-28, 1990-2017
Department of International Relations and European Studies8
EU27 Situation
̶ However, the gross inland energy consumption of RES is relatively low:
̶ Czech Republic 10.5% (of which biofuels 9.2%)
̶ Slovak Republic 9.2% (of which biofuels 6.7%)
̶ Poland 8.5% (of which biofuels 6.9%)
̶ Austria 28.9% (of which biofuels 16.1% and hydro 9.6%)
̶ Hungary 11.1% (of which biofuels 10%)
̶ Germany 13.3% (of which biofuels 8.2% and wind 2.8%)
̶ The rise mainly covered by biofuels and bioliquids
̶ (The difference between gross inland energy consumption and gross (energy) consumption is that in gross energy consumption
the transformation output (electricity or heat produced from other energy sources) is included. Therefore, gross energy
consumption is a product-specific consumption and does not reflect the demand for primary energy.)
̶ Gross inland energy consumption is primary energy production plus recovered energy products, imports and stock change, less
exports and fuel supply to maritime bunkers (for seagoing ships of all flags). It therefore reflects the energy necessary to satisfy inland
consumption within the limits of national territory.
Department of International Relations and European Studies9
EU27 SituationGross inland consumption of renewables,
EU-28, 1990-2017
Department of International Relations and European Studies10
EU27 Situation
̶ The share of energy from RES used in transport activities reached 8.9 % in 2019
̶ Czech Republic 7.8%
̶ Slovak Republic 8.3%
̶ Poland 6.1%
̶ Austria 9.8%
̶ Hungary 8.0%
̶ Germany 7.7%
̶ How many countries will fail to comply with the Directive?
Department of International Relations and European Studies11
EU28 Situation
January
2021 data
Source:
Eurostat
https://ec.euro
pa.eu/eurostat
/statistics-
explained/
Department of International Relations and European Studies12
EU28 Situation
January
2022 data
Source:
Eurostat
https://ec.euro
pa.eu/eurostat
/en/web/produ
cts-eurostat-
news/-/ddn-
20220202-2
Department of International Relations and European Studies13
EU27 Situation
̶ Electricity generation
̶ In 2019, electricity generation from renewable sources contributed more than one quarter (34 %) to
total EU-28 gross electricity consumption
̶ Wind power is for the first time the most important source, followed closely by hydro power
Department of International Relations and European Studies14
Gross electricity generation from
renewable sources, EU-28, 1990-2017
January 2021 data
Source: Eurostat
https://ec.europa.eu/eurostat/statistics-explained/
Department of International Relations and European Studies15
January
2022 data
Source:
Eurostat
https://ec.euro
pa.eu/eurostat
/statistics-
explained/inde
x.php?title=Re
newable_ener
gy_statistics#
Share_of_rene
wable_energy
_more_than_d
oubled_betwe
en_2004_and
_2020
Department of International Relations and European Studies16
RES Development Experience in CE (V4)
Department of International Relations and European Studies17
Czech Republic
Obligations Resulting from Membership in International Organizations
Obligation Obligation as Amended by
1. Reduction in greenhouse gas emissions by 8% by 2012. Kyoto Protocol (1997) 2005
2. A greater renewable energy share in gross final consumption, reaching a level
of 8% by 2010 and a level of 15% by 2030.
EU Accession Agreement (Athens, April 16, 2003)
3. A greater renewable energy share in gross final consumption, reaching a level
of 13% by 2020.
Directive of the European Parliament and of the
Council 2009/28/EC
4. Reaching a renewable energy share of 10% in all sorts of transportation
displayed in gross final energy consumption in transportation in the Czech
Republic by 2020.
Directive of the European Parliament and of the
Council 2009/28/EC
5. Emissions from sectors not covered by the EU ETS will not exceed 2005 levels
+ 9% by 2020.
EU Climate and Energy Package 2009
6. The main aim is to hold the increase in the global average temperature to well
below 2°C ideally to 1.5 °C) above pre-industrial levels.
The Paris Agreement (UNFCCC) 2016
7. A greater renewable energy share in gross final consumption, reaching an
overall target of 32% by 2030 for the EU as a whole (20.8% for the Czech
Republic, see below).
The EU Winter Package - Directive (EU) 2018/2001 on
the Promotion of the Use of Energy from Renewable
Sources & The Regulation on the Governance of the
Energy Union and Climate Action
Source: T. Vlček and E. Trmalová from publicly available sources
Department of International Relations and European Studies18
Czech Republic
̶ Act No. 180/2005 Coll. pioneered the term ‘green bonus’
̶ operators of the regional distribution systems the transmission system were required “to purchase all
electricity from renewable sources“
̶ responsibility was put on CEPS for maintaining the stability of the network in the event of unstable
production of electricity from renewables
Department of International Relations and European Studies19
Czech Republic
̶ The system of state promotion of renewables was set so generously that, for example, the target of 1,695 MWe of
installed capacity in photovoltaic power plants, which the Czech National Renewable Energy Action Plan set for
2020, has been exceeded already in 2010.
̶ While in 2005 the purchase price of electricity from photovoltaic power plants was 6.04 CZK/kWh, the Energy
Regulatory Office more than doubled this value in 2006, to 13.2 CZK/kWh (which is about twelve times the market
price of electricity)
Installed Capacity of Photovoltaic Power Plants in the Czech Electrification System (MW)
Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Inst.
capacity
0.13 0.13 0.74 3.4 39 465 1,959 1,971 2,086 2,132 2,067 2,075 2,068 2,069
Source: Energetický regulační úřad 2018, p. 25 (note: data for 2004-2007 are from the previous reports)
Department of International Relations and European Studies20
Czech Republic
̶ Renewable Energy Crisis
̶ erupted on February 16, 2010, when the distribution companies met the request of CEPS and stopped
the approval of applications for installation of new photovoltaic and wind power plants into the network
̶ It lasted until September 2011, and than again from January 2012 until the end of the year in Southern
Bohemia and Southern Moravia
̶ November and December 2010 – amendments No. 330/2010 and No. 402/2010 to the Act180/2005
Coll. (in force from 2011)
̶ State will support only those PVE connected to the distribution grid
̶ Solar farms will be cut of support (support of PVE of 30 kWp maximum)
̶ PVE installed on rooftops and buildings will be supported only
̶ Retroactive solar tax of 26% for all PVE launched in 2009 and 2010 (not for 30kWp PVE on rooftops)
̶ Purchase price for electricity from RES set at 7.5 CZK/kWh
̶ Temporary solutions
Department of International Relations and European Studies21
Czech Republic
̶ new Act No. 165/2012 Coll. On supported energy sources (in force from 2013)
̶ closely tied to Directive 2009/28/EC and the National Renewable Energy Action Plan
̶ even though Directive 2009/28/EC understands the levels of the National Action Plan as minimum, the new Act
understands them as maximum
̶ these levels are calculated every year not only for the entire Czech Republic, but for single regions as well
Department of International Relations and European Studies22
Czech Republic
Share of price components for electricity supply to
households in 2010 and 2014
Electricity incl. margin 42,27 % 30 %
Market operator 0,12 % 0,2 %
System services of ČEPS 3,94 % 2 %
Renewables, cogeneration
and decentralized sources
4,41 % 10 %
Electricity distribution and
transport
31,86 % 40,2 %
Ecological tax 0,72 % 0,6 %
VAT 16,67 % 17 %
Source: Energetický regulační úřad
The development of contribution to the RES, CHEP and DS for end
consumers (CZK per 1 MWh)
2009 2010 2011 2012 2013 2014 2015 2016
52,18 166,34 370,00 419,22 583,00 495,00 495,00 495,00
̶ the amendments and the new act contributed to the
stabilization of the renewable sector
̶ the price to be paid is high
̶ a rough suspension of the sector and a significant
change of terms led to the bankruptcy of tens of
companies trading with photovoltaic technologies,
while the state is financially burdened with support to
decentralized production and renewables for the next
tens of years
̶ renewables were depreciated in the public eyes to a
great measure
̶ What was the effect, can we speak of positives figures in
RES?
Department of International Relations and European Studies23
Czech energy sector
Installed Capacity and Gross Electricity Production in the Czech Electricity Grid on December 31, 2020
Type of Power Station Installed Capacity
(MWe)
Percentage (%) Electricity
Production (GWh)
Percentage (%)
Thermal 10,058.3 47.1 35,197.6 43.2
Gas Combined Cycle 1,363.5 6.4 6,041.3 7.4
Gas Fired 962.2 4.5 3,790,1 4.7
Hydropower 1,093.9 5.1 2,143.9 2.6
Pumped-storage
Hydropower
1,171.5 5.5 1,293.1 1.6
Nuclear 4,290.0 20.1 30,043.3 36.9
Wind 339.4 1.6 699.1 0.9
Photovoltaic 2,071.3 9.7 2,235.1 2.7
Geothermal Power 0 0 0 0
Total 21,350.3 100 81,443.4 (gross)
76,126.2 (net)
100
93.5
Source: Energetický regulační úřad
Department of International Relations and European Studies24
Czech Republic (TPES 2018)
35,3
21
17,6
15,3
9,9
0,6 0,3
Coal
Oil
Nuclear
Natural gas
Biofuels and waste
Wind, solat etc.
Hydro
Indicative Corridors for Czech Republic's Energy
Sector in 2040
Structure of Brutto
Electricity Generation
Structure of Energy Mix
Nuclear 46 – 58 % Nuclear 25 – 33 %
RES and
secondary
sources
18 – 25 %
RES and
secondary
sources
17 – 22 %
Natural Gas 5 – 15 %
Gaseous
fuels
18 – 25 %
Coal 11 – 21 % Solid fuels 11 – 17 %
Liquid fuels 14 – 17 %
Source: Ministerstvo průmyslu a obchodu, 2014, p. 44
Department of International Relations and European Studies25
Slovak Republic
̶ A greater renewable energy share in gross final consumption, reaching a level of
14% by 2020
̶ Target to be reached mainly by traditional hydroenergy development
̶ Primary understanding of RES was to diversify from dependence on Russia
̶ Act No.309/2009 Coll. on Supporting renewable sources of energy and highly
effective combined production
̶ Preferred connections of PVE and WE and purchases from the regional distribution grid operators
̶ Surcharge („green bonus“)
̶ Responsibility for stability put on regional distribution grid operators
̶ Limitation of support for 30 kWp and 15 years
Department of International Relations and European Studies26
Slovak Republic
̶ Effect
̶ unplanned solar boom as a result of generous FiTs in 2011
̶ Act amendments
̶ government cut back the subsidies out of concern for grid instability and thef inancial burden on final consumers
̶ the size of solar installations qualified for subsidies was scaled back from 125 MW to 100 kW, and the FiT rates were nearly
halved
̶ subsidies for solar PV to only rooftop installations of at most 30 kW of capacity
̶ high energy prices for end consumers
̶ renewables have been associated with instability, high costs and intermittency
̶ problem in capacity of electricity transmission lines and unfavorable natural conditions
̶ New Act PI/2018/69 in process
̶ Potential
̶ Potential in hydroenergy development (55% potential in use)
̶ Potential in biomass (developed agriculture and forestry – 40% of the country are forests)
̶ PVE has potential, but is not likely to be substantially developed - National Grid Operator considers and defines it as” nonpredictable
RES” - more serious and difficult administrative procedures are applied
̶ Geothermal energy fhas potential or heating due to geographical conditions
Department of International Relations and European Studies27
Slovak Republic
Source: Energy Policies of IEA Countries:
Slovak Republic 2018 Review
Department of International Relations and European Studies28
Poland
̶ A greater renewable energy share in gross final consumption, reaching a level of
15% by 2020
̶ Target to be reached mainly by biomass development
̶ Act of 20 February 2015 on Renewable Energy Sources ("RES Act")
̶ support scheme based on an auction system
̶ Ministry of Economy announces maximum prices for 1 MWh of RES-E 60 days before the first auction of each calendar year
̶ The bidder offering the lowest price won the auction
̶ the price remain unchanged for a period of 15 years
̶ the winner or winners will be obliged to sell the declared amount of RES-E for that price even if the market price turns out to be
higher
̶ producers of electricity from renewable sources are exempt from the tax on the sale and consumption of electricity
̶ For microinstallations the electricity distribution companies will be obliged to buy any surplus of energy produced with installed
capacities of up to 40kW for 100% of the energy market average price in the past quarter
Department of International Relations and European Studies29
Poland
̶ Major Amendment from 20 February 2018
̶ change in definitions
̶ reform in the auction baskets and other elements
̶ reform in volumes, FiTs (up to 50 kW) and FiPs (50-500 kW)
̶ RES will be divided into 5 independent baskets:
̶ Basket I – RES installations using only non-agricultural biogas for electricity generation, and RES installations using biomass,
bioliquid fuels (including dedicated biomass combustion installations, hybrid systems and dedicated multi-fuel combustion
installations);
̶ Basket II – installations using (i) only hydropower, (ii) only bioliquid fuels, (iii) only geothermal energy, (iv) only offshore wind
energy for electricity generation;
̶ Basket III – installation using only agricultural biogas for electricity generation;
̶ Basket IV – installations using: (i) only onshore wind energy and (ii) only solar radiation for electricity generation;
̶ Basket V – RES hybrid installations.
Department of International Relations and European Studies30
Poland
̶ Effect
̶ certificate system have been used to encourage the production and use of RES
̶ producing companies and suppliers must fulfill quota of RES
̶ certificates are used to confirm the quota to the Energy Regulatory Office
̶ it helped to develop wind energy
̶ but certificates were issued in large quantities to co-firing biomass with coal in existing power plants
̶ little effect on development of new technologies and the certificates themselves became unattractive to investors
̶ biomass accounts for around 50% of RES electricity
̶ Should Poland reach its EU obligations, it will be a short-lived victory,
as soon as the TPPs retire, the biomass use will drop
down considerably (IEA 2017, p. 103)
̶ Potential
̶ Based on IRENA, if Poland updates grid, biomass and wind can be
further developed to have 25% RES on energy consumption in 2030
Department of International Relations and European Studies31
Poland
Source: Energy Policies of IEA Countries:
Poland 2017 Review
Department of International Relations and European Studies32
Hungary
̶ A greater renewable energy share in gross final consumption, reaching a level of
13% by 2020 (own target 14.65%)
̶ Target to be reached mainly by biomass development
̶ biofuels dominate renewable energy supply in Hungary, both in terms of total primary energy supply (TPES) and electricity
generation
̶ biofuels are the main RES with nearly negligible importance of all other sources (onshore wind mainly)
̶ solar power has been the fastest growing source of RES (from 4 MWe in 2011 to 168 MWe in 2015)
Department of International Relations and European Studies33
Hungary
̶ In 2003-2011 FiT (KÁT)
̶ similar logic like in Slovakia or Czech Republic
̶ limited development of RES
̶ grow in electricity prices lead to abolishment of FiT
̶ Energy and Climate Awareness Raising Action Plan (Government Decision
1602/2015)
̶ development of METÁR (Feed-in Premium)
̶ new RES not supported by KÁT
̶ market premiums depending on the capacity of the power plants
Department of International Relations and European Studies34
Hungary
̶ problem with wind power plants lead to amendment of the law
̶ the Act now does not explicitly ban wind farms, but bans wind turbines within a 12-kilometre radius of
populated areas
̶ the installation of wind turbines on agricultural land is restricted to those areas which have been out of
̶ cultivation for at least three years
̶ only older 2 MW wind turbines are allowed and at a height of no more than 100 metres
̶ an environmental tax (recycle fee) has been levied on solar panels, which is high by international
comparison
Department of International Relations and European Studies35
Hungary
Source: Energy Policies of IEA Countries:
Hungary 2017 Review
Department of International Relations and European Studies36
Summary and New Targets
Department of International Relations and European Studies37
Summary and New Targets
Department of International Relations and European Studies38
EU27 Situation
January
2022 data
Source:
Eurostat
https://ec.euro
pa.eu/eurostat
/statistics-
explained/inde
x.php?title=Re
newable_ener
gy_statistics
Department of International Relations and European Studies39
Summary and New Targets
̶ Czech Republic
̶ interest in RES not from the country, rather from the EU
̶ problems in preparations of the law
̶ consequent restrictions and limitations to RES development
̶ Slovak Republic
̶ interest in RES primarily in diversification on Russia
̶ problems in preparations of the law
̶ consequent restrictions and limitations to RES development
̶ Poland
̶ interest in RES not from the country, rather from the EU
̶ fears of the future and competitivenes of coal leads to legal limitations and regulations of RES
̶ Hungary
̶ interest in RES not from the country, rather from the EU
̶ problems in preparations of the law
̶ consequent restrictions and limitations to RES development
Department of International Relations and European Studies40
Summary and New Targets
̶ Directive (EU) 2018/2001 on the Promotion of the Use of Energy from Renewable Sources & The Regulation on the
Governance of the Energy Union and Climate Action
̶ also called The EU Winter Package
̶ target a greater renewable energy share in gross final consumption, reaching an overall target of 32% by 2030 for the EU as a
whole
̶ revised by Directive (EU) 2018/2002 to 32.5% by 2030
̶ part of Clean Energy for All Europeans
̶ As per Article 3 of the Directive, Member States are required to set national contributions to meet the binding target
as part of their integrated national energy and climate plans. From 1 January 2021, the share of energy from
renewable sources in each Member State’s gross final consumption of energy shall not be lower than the target for
2020.
̶ 22% proposal by the Czech Republic (from 13% in 2020) 21% proposal by Hungary (from 13% in 2020)
̶ 19.2% proposal by the Slovak Republic (from 14% in 2020) 21% proposal by Poland (from 15% in 2020)
̶ Transportation – everyone 14 % in 2030
Department of International Relations and European Studies41
Thank you for your attention.