Czech Republic: Overview of legal framework
Overview of promotion system
Electricity generated from renewable energy is promoted through a price regulation. Plant operators may choose between a guaranteed feed-in tariff and a green bonus, which is paid on top of the market price. Furthermore, renewable energy is promoted through several subsidies and an exemption from the tax on income gained from the sale of renewable-energy-sourced electricity.
Overview of access to the grid
Operators of plants that generate renewable electricity are entitled to priority connection to the grid. Renewable-energy-sourced electricity shall also be transmitted at a priority. An expansion of the grid is subject to the general provisions of energy law.
Overall
The generation of renewable electricity is mainly promoted through a price-regulation. System operators may choose between a guaranteed feed-in tariff and a green bonus paid on top of the regular electricity price achieved on the market. Those system operators that generate electricity for their own needs are also entitled to the bonus (chapter 1 § 4 par. 16 Act Nr. 180/2005 CollSb.). Electricity producers may change their mind at the earliestwithin one year after having chosen an option and having used the payment system in question (chapter 1 § 4 par. 3 Act Nr. 180/2005 CollSb.). To be able to enforce their claim for the feed-in tariff, system operators shall conclude an agreement with the grid operator. To be able to receive the bonus, system operators shall conclude an agreement with an electricity market participant, e.g. a supplier, and furnish proof thereof (chapter 1 § 4 par. 15 to par. 17 Act Nr. 180/2005 CollSb.).
The claim for promotion through the price-regulation is based on statutory law. The enforcement of this claim is conditional upon the conclusion of a contract:
- Feed-in tariff: If the system operator has chosen promotion through the feed-in tariff, he shall conclude a contract with the grid operator (chapter 1 § 4 par. 17 Act Nr. 180/2005 Sb.).
- Bonus: If the system operator has chosen promotion through the bonus, he shall prove to the grid operator that he has concluded a contract with an electricity market participant (e.g. a supplier), (chapter 1 § 4 par. 15 Act Nr. 180/2005 Sb.). System operators that consume the total amount of renewable electricity they generate need not prove the existence of a contract.
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