Govt support for Czech renewables projects may end in 2013

Jul 29, 2013 - The Czech Republic may terminate support for new renewable energy projects from the start of 2014 if the Czech parliament okays a draft law adopted at an extraordinary cabinet session on Jul 25.

In a statement last week, Prime Minister Jiri Rusnok explained that the increasing financial burden for power consumers had motivated the proposed move. Of all renewables, solar power requires the highest subsidies.

According to the plan, only wind, biomass and hydropower projects will remain in line for government support in 2014 if they have received construction permits in 2013.

On a related matter last week, the Czech government said the surcharges for renewable energy would be no higher than CZK 495 (USD 25.4/EUR 19.1) per MWh as of 2014. That rate is still high and threatens the competitiveness of Czech companies, according to the Confederation of Industry and the Economic Chamber. News agency CTK today cited the confederation's vice-president Jan Rafaj as saying that the government has to set the ceiling on the surcharge at CZK 400 per MWh in order to be effective.

(CZK 10 = USD 0.513/EUR 0.386)

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