November 28 (SeeNews) - The European Commission (EC) said today it has cleared the Czech Republic’s renewable energy support scheme with a budget of CZK 836.5 billion (USD 32.7bn/EUR 30.9bn).
The support regime, which was notified to the commission in December 2014, comes to incentivise all types of renewable energy plants built between January 1, 2006 and December 31, 2012. The idea of the mechanism is to support projects through feed-in tariffs (FiTs) and premiums on top of the market price, also known as green bonuses. A review mechanism is included to make sure that installations are not overcompensated.
The scheme is funded by a mix of a surcharge levied on electricity consumers and contributions from the state budget. The Czech government has pledged to invest some EUR 20 million (USD 21.2m) in interconnection projects to remedy any past discrimination against foreign green power stemming from the financing of the mechanism.
The EC said in a statement on Monday it has concluded that this measure is in line with EU objectives and could result in only limited distortions of competition thanks to the modified financing system and the interconnector investment commitment.
Under the Renewable Energy Directive, the Czech Republic has a renewables target of 14% of gross electricity consumed by 2020.
(CZK 10 = USD 0.391/EUR 0.370)
(EUR 1.0 = USD 1.057)