Energy Policy, Legislative Background, Funds and Programmes
In 2004, the parliament of Czech Republic approved the national energy policy until 2030. It consists of the energy concept including an overview of measures in the energy sector, and several annexes including three scenarios of future development.
Among the targets defined in the paper is a share of RES in total primary energy sources of 5-6 % until 2005.
The Government selected one of the scenarios developed for the energy strategy as the preferred scenario for future development. This "Revised Green Scenario" includes the following proposed measures:
- Promotion and incentives for increased energy efficiency;
- Greater promotion of the use of renewable energy sources;
- Nuclear energy: today’s configuration (Dukovany nuclear power plant + Temelín nuclear power plant) + 2 new nuclear units possible;
- Reasonable revision of regional environmental limits for brown coal mining;
- Removing the limits on black coal imports;
- Economic imports of electricity are possible, however up to a maximum of 5 TWh a year;
- Active use of granting authorisation procedure for the construction of new electricity and heat generating capacities;
- Targeted use of state research and development support programmes or the Act on Investment Incentives.
The scenario envisages an increase of total primary consumption from 1,672 PJ to 1797 PJ until 2030. The share of brown coal, black coal and coke and other solid fuels should therefore decrease from more than half of primary energy supply to less than one third. The share of gas would therefore increase from 19 % in 2000 to 20.6 in 2030, whereas the contribution of nuclear fuel would increase significantly from 8.85 % in 2000 to 20.87 % in 2030 and that of Renewable Energy Sources from 2.63 % in 2000 to 15.75 % in 2030. Electricity production would be raised by 20 %. The envisaged increase in District Heat generation of 25 % is to be covered mostly be Renewable Energy Sources according to the Scenario. [MPO]
Legislative Background
On December 30, 2004, the Energy Act including its latest amendment to the Energy Act of 2001 (Act No. 458/2000 Coll. on Business Conditions and Public Administration in the Energy Sectors ) entered into force. The Energy Act of 2001 was based on EU principles and brought the electricity- and gas sectors closely in line with the EU directives. According to this law, electricity generation, transmission, distribution and trading are defined as business activities. Licenses are issued by the Energy Regulatory Office. Principles of the new energy policy are:
- improvement of energy efficiency;
- reduction of negative impacts of energy production on the environment;
- reorganisation of the energy sector with the targets: deregulation of prices, privatisation, liberalisation.
The privatisation of energy companies aimed at the improvement of the competitiveness of Czech companies as prerequisite for the future liberalisation of the energy markets (electricity- and gas sectors). Liberalisation of the electricity market is applied in a stepwise approach: since 2002 for consumers with annual demands exceeding 40 GWh, representing about 30 % of the market. In 2003 for consumers with annual demands exceeding 9 GWh. Since 2006, the market is planned to be completely open. [EURELECTRIC, 2002, MPO]
Act on Energy Management
(Act No. 177/2006 Coll, in force since July 2006 replaced Act No. 406/2000 Coll. on Energy Management.)
The Energy Management act makes standards in energy efficiency of heat and electricity production, transmission, distribution and use, energy planning requirements and energy auditing obligatory.
The Energy Management Act also sets out the obligation to formulate "National Energy Policy", a strategic document with an outlook of 20 years expressing the goals of the state in energy management in accordance with the needs of economic and social development, including the protection of the environment. Draft of the National Energy Policy is prepared by the Ministry of Industry and Trade and is submitted to the Government for approval.
The Act stipulates mandatory Regional Energy Plans for all 14 regions and for 14 towns. The Act also stipulates the necessity to prepare "National Programme for Energy Efficiency and Use of Renewable and Waste Energy Sources".
Through the new version of the Energy Management act, the Directive of the European Parliament and of the Council on the energy performance of buildings (2002/91/EC) was transposed into Czech national legislation.
Law on the Promotion of Production of Electricity from Renewable Energy Sources
The law entered into force on August 1, 2005. For details, see Support Mechanisms and feed-in conditions for electricity from renewable energy sources.
Important contracts between Austria and concerning energy issues
The Melk Process:
- The Melk Protocol: signed in Melk, Austria on 12 December 2000: A "Protocol on the Negotiations between the Czech and the Austrian Governments, led by Prime Minister Zeman and Federal Chancellor Schüssel, with the Participation of Commissioner Verheugen", with the aim of further developing good-neighbourly relations between the Czech Republic and the Republic of Austria.
- The Declaration of Brussels: The signatories of the "Melk Protocol" found it appropriate to meet in Brussels on 29 November 2001 to define a follow-up to the process set forth in the Protocol mentioned above.
The Melk Protocol and the Agreements on Follow-Up made in Brussels contained the following measures concerning the Temelín Nuclear Power Plant: An Info-Hotline, an Early Warning System, the Energy Partnership between the two countries carried out by the Austrian Energy Agency in cooperation with the Czech Energy Agency, Safety Issues, the Environmental Impact Assessment, the commercial operation of the Temelín NPP, free movement of goods and publicity in the media, the European Union enlargement process.
Memorandum of Understanding concerning Joint Implementation
Contract between Czech Republic and Austria concerning bilateral energy partnership
Energy related Funds and Programmes
The State Environmental Fund (SEF)
The fund with an annual budget of (2001) 3,700 Mio. Czech Crowns (120 Mio. Euro) is administered by the Ministry of Environment. Its responsibilities cover, among others, investment subsidies for renewable energy technologies. Between 1992 and 2001, this fund has spent about 32,500 Mio. Czech Crowns (approx. 1.05 billion Euro), of which app. 40 % for climate- and energy relevant projects.
National programme for the energy management and the use of renewable sources of energy for 2006 - 2009
The programme is a framework document approved by the Government of the Czech Republic once in four years under Act on energy management, jointly prepared by Minister of Industry and Trade and the Minister of the Environment. It is the basis for the Implementation of the Annual State Support Programme for Energy Saving and the Use of Renewable Energy Sources.
Its targets are to increase energy effectiveness by 2.6 % per year and energy savings by some 11 PJ per year, and to contribute to meeting of targets in the area of use of renewable sources of energy and biofuel in transport.
Annual State Support Programme for Energy Saving and the Use of Renewable Energy Sources
The Czech Energy Agency manages the programme on behalf of the Ministry of Trade and Industry.
