Czech Senate votes to drop renewables subsidies in 2014 - report

Sep 16, 2013 - The Czech Senate on Friday approved a bill that will put an end to state subsidies for most renewable energy projects from 2014, aiming to lower costs for consumers.

The Senate, the upper chamber of the Czech Republic’s parliament, is currently the only legislative body in the country after the Parliament’s Lower House was dissolved. The latter voted in favour of the draft law in July. The bill will now only need approval from Czech president Milos Zeman to become law.

After passing the new law, solar parks that are tied to the grid after December 31 will not get any government incentives. Hydropower plants, wind farms and biomass facilities that have been granted planning permissions in 2013 will qualify for state subsidies if they are put on stream by the end of 2014. Hydropower stations of under 10 MW will get government support, under the new regulations.

The Czech Republic’s Prime Minister Jiri Rusnok explained in July that the renewable energy segment’s competitiveness was endangered by the fact that subsidies for the industry have boosted electricity prices in the last three years and costs have weighed on consumers.

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