Feed-in tariff (State-purchasing Price)

Updated: 19.10.2017

Author: Boris Valach

Please note: In August 2013, the Czech Parliament amended Act No. 165/2012 (Act No. 310/2013 Coll.), which de facto abolished the feed-in tariff scheme for all technologies except small hydro by the end of 2013. New PV installations and biogas plants are only being supported if put into operation before 31 December 2013 (§ 4 par. 10 Act No. 165/2012). Only wind, hydro, geothermal or biomass plants that were put into operation before 31 December 2015 and their building permit was issued before 2 October 2013 are eligible for support (Transitional Provision No. 1 and No. 2 Act No. 165/2012).

In the Czech Republic, renewable electricity generation from plants up to 100 kW (30 kW in case of PV or 10 MW in case of hydro power) is supported through a feed-in tariff. Plant operators may choose between a guaranteed feed-in tariff and a green bonus paid on top of the regular electricity price achieved in the market (see also “Premium Tariff”). Every electricity producer may make this choice once a year (§ 8 par. 2 Act No. 165/2012). Responsible for the payment of the feed-in tariffs are the “mandatory purchasers” selected by the Ministry of Industry and Trade. To be able to enforce their claim for the feed-in tariff, plant operators are obliged to conclude an agreement with the grid operator.

Eligible technologies

In principle, the feed-in tariff scheme applies to almost all renewable electricity generation technologies. However, there are some restrictions (§ 4 par. 4 Act No. 165/2012).  According to the amendment to Act No. 165/2012 (Act No. 310/2013), newly constructed renewable energy plants with a building permit up to a maximum capacity of 100 kW, with exception of small hydro power plants, are eligible for the feed-in tariff under condition that they are put into operation before by 31 December 2015 (Transitional Provision No. 1 Act No. 165/2012). In addition, requirements for minimum efficiency of energy use do not apply for geothermal, solar, wind and hydropower energy plants (§ 4 par. 4 Act No. 165/2012)..

Wind energy

Eligible up to a maximum capacity of 10 MW (§ 8 par. 2 Act No. 165/2012, No. 1.6.2. Price Decision of the Energy Regulatory Office No. 3/2017).

Solar energy

Eligible under following conditions:

  • Only installations on rooftops or façades are eligible and the maximum capacity must not exceed 30 kW (§ 4 par. 5 Letter d Act No. 165/2012).
  • The installation must have been put into operation until 31 December 2013 (§ 4 par. 10 Act No. 165/2012).
  • Only one installation per rooftop or façade is eligible (§ 4 par. 5 Letter d Act No. 165/2012).

Geothermal energy

Eligible are only geothermal plants up to 100 kW that were put into operation before 31 December 2015 and their building permit was issued before 2 October 2013 (par. 2 Transitional Provision No. 1 Act No. 165/2012).

Biogas

Eligible under following conditions:

  • The electricity has to be generated in a CHP plant using biogas from more than 30% of other crops than herbage and crops from targeted growth on arable land. It should also secure the efficient use of at least 50% of the primary energy generated by the biomass from which the biogas is produced (§ 4 par. 5 Letter c Act No. 165/2012).
  • The installation must have been put into operation until 31 December 2013 (§ 4 par. 10 Act No. 165/2012).

Hydro-power

Eligible up to a maximum capacity of 10 MW (No. 1.6.2. Price Decision of the Energy Regulatory Office No. 5/2016).

Biomass

Eligible under following conditions:

  • The electricity has to be generated in a CHP plant with the certificate issued by the Ministry of Industry and Trade (§ 4 par. 5 Letter b Act No. 165/2012).
  • Only pure biomass firing in new electricity generating plants is eligible (No. 1.7. Price Decision of the Energy Regulatory Office No. 3/2017).
  • The maximum capacity must not exceed 100 kW (§ 8 par. 2 Act No. 165/2012).
  • The installation must have been put into operation until 31 December 2015 (par. 2 Transitional Provision No. 1 Act No. 165/2012).

Amount

The amount of payment differs for every source of energy. The tariffs listed below are excluding VAT (General Provisions par. 2 Price Decision of the Energy Regulatory Office No. 3/2017). Listed below are the feed-in tariff levels as determined by the Energy Regulatory Office in its Price Decision No. 3/2017 of 26 September, 2017 that enters into force on 1 January 2018 and cancels the Price Decision No. 5, 9 and 11/2016 as well as the Price Decision No. 2/2017:

Wind energy

Tariff levels depend on the date of commissioning and are set as follows:

  • From 1 January – 31 December 2013: CZK 2,340 (€ 91) per MWh.
  • From 1 January – 31 December 2014: CZK 2,180 (€ 85) per MWh.
  • From 1 January – 31 December 2015: CZK 2,101 (€ 81) per MWh.
  •  From 1 January – 31 December 2016: CZK 2,008 (€ 78) per MWh.
  • From 1 January – 31 December 2017: CZK 1,969 (€ 76) per MWh.
  • From 1 January – 31 December 2018: CZK 1,930 (€ 75) per MWh (No. 1.9. Price Decision of the Energy Regulatory Office No. 3/2017).

Solar energy

Since 1 January 2014, the feed-in tariff for new PV installations has been abolished. Tariff levels for PV installations put into operation until 31 December 2013 depend on the date of commissioning and are set as follows:

  • From 1 January – 31 December 2011: CZK 8,615 (€ 336) per MWh for installations with a capacity of up to 30 kW.
  • From 1 January – 31 December 2011: CZK 6,780 (€ 264) per MWh for installations with a capacity between 30 to 100 kW.
  • From 1 January – 31 December 2011: CZK 6,318 (€ 245) per MWh for installations with a capacity above 100 kW.
  • From 1 January – 31 December 2012: CZK 6,938 (€ 269) per MWh for installations with a capacity of up to 30 kW.
  • From 1 January – 30 June 2013: CZK 3,765 (€ 146) per MWh for installations with a capacity of up to 5 kW.
  • From 1 January – 30 June 2013: CZK 3,125 (€ 121) per MWh for installations with a capacity between 5 to 30 kW.
  • From 1 July – 31 December 2013: CZK 3,301 (€ 128) per MWh for installations with a capacity of up to 5 kW.
  • From 1 July – 31 December 2013: CZK 2,685 (€ 104) per MWh for installations with a capacity between 5 to 30 kW (No. 1.10. Price Decision of the Energy Regulatory Office No. 3/2017).

The feed-in tariff for PV installations put into operation between 1 January 2010 and 31 December 2010 is subject to a tax of 10% (§ 14 and § 18 Letter a Act No. 165/2012). The exception is represented by installations with a capacity of up to 30 kW (§ 17 Act No. 165/2012). The tax applies to all electricity generated in the respective PV plants from 1 January 2014 (§ 14 Act No. 165/2012).

Geothermal energy

Tariff levels depend on the date of commissioning and are set as follows:

  • From 1 January – 31 December 2017: CZK 3,356 (€ 130) per MWh.
  • From 1 January – 31 December 2018: CZK 3,290 (€ 128) per MWh (No. 1.11. Price Decision of the Energy Regulatory Office No. 3/2017).

Biogas

Since 1 January 2014, the feed-in tariff for biogas plants has been abolished. Tariff levels for biogas plants put into operation before 31 December 2013 depend on the date of commissioning and are set as follows:

  • Landfill and sewage gas put into operation from 1 January 2006 – 31 December 2012: CZK 2,907 (€ 113) per MWh.
  • Landfill and sewage gas put into operation from 1 January 2013 – 31 December 2013: CZK 2,098 (€ 81) per MWh.
  • Biogas plants (AF1) put into operation by 31 December 2011: CZK 4,120 (€ 160) per MWh.
  • Biogas plants (AF2) put into operation by 31 December 2012: CZK 3,550 (€ 138) per MWh.
  • Biogas plants (AF) put into operation from 1 January 2013 – 31 December 2013: CZK 3,550 (€ 138) per MWh for installations with a capacity up to 550 kW.
  • Biogas plants (AF) put into operation from 1 January 2013 – 31 December 2013: CZK 3,040 (€ 118) per MWh for installations with a capacity above 550 kW (only for informative purposes).
  • Combustion of mine gas from closed mines by 31 December 2012: CZK 2,907 (€ 113) (No. 1.8. Price Decision of the Energy Regulatory Office No. 3/2017).

Biogas plants (AF1) using anaerobic fermentation:

  • Put into operation from 1 January – 31 December 2012 and simultaneously producing and effectively using thermal energy: CZK 4,120 (€ 160) per MWh.
  • Put into operation from 1 January – 31 December 2012 and not producing thermal energy CZK 3,550 (€ 138) (No. 1.8. Price Decision of the Energy Regulatory Office No. 3/2017).

Hydro-power

Small hydropower plants (with installed capacity up to 10 MW) at existing locations:

  • Put into operation by 31 December 2004: CZK 2,152 (€ 83) per MWh.
  • Put into operation from 1 January 2005 – 31 December 2013: CZK 2,759 (€ 107) per MWh.
  • Put into operation from 1 January 2014 – 31 December 2014: CZK 2,705 (€ 105) per MWh.
  • Put into operation from 1 January 2015 – 31 December 2015: CZK 2,652 (€ 103) per MWh.
  • Put into operation from 1 January 2016 – 31 December 2016: CZK 2,600 (€ 101) per MWh.
  • Put into operation from 1 January 2017 – 31 December 2017: CZK 2,258 (€ 88) per MWh.
  • Put into operation from 1 January 2018 – 31 December 2018: CZK 2,214 (€ 86) per MWh.

Reconstructed small hydropower plants:

  • Put into operation by 31 December 2013: CZK 2,759 (€ 107) per MWh.
  • Put into operation from 1 January 2014 – 31 December 2014: CZK 2,705 (€ 105) per MWh.
  • Put into operation from 1 January 2015 – 31 December 2015: CZK 2,652 (€ 103) per MWh. • Put into operation from 1 January 2016 – 31 December 2016: CZK 2,600 (€ 101) per MWh.
  • Put into operation from 1 January 2017 – 31 December 2017: CZK 2,258 (€ 88) per MWh.
  • Put into operation from 1 January 2018 – 31 December 2018: CZK 2,214 (€ 86) per MWh.

Small hydropower plants at new locations:

  • Put into operation from 1 January 2006 – 31 December 2007: CZK 3,065 (€ 119) per MWh.
  •   Put into operation from 1 January 2008 – 31 December 2009: CZK 3,244 (€ 126) per MWh.
  • Put into operation from 1 January 2010 – 31 December 2010: CZK 3,525 (€ 137) per MWh.
  • Put into operation from 1 January 2011 – 31 December 2011: CZK 3,447 (€ 134) per MWh.
  • Put into operation from 1 January 2012 – 31 December 2012: CZK 3,592 (€ 139) per MWh.
  • Put into operation from 1 January 2013 – 31 December 2013: CZK 3,567 (€ 138) per MWh.
  • Put into operation from 1 January 2014 – 31 December 2014: CZK 3,497 (€ 136) per MWh.
  • Put into operation from 1 January 2015 – 31 December 2015: CZK 3,428 (€ 133) per MWh.
  • Put into operation from 1 January 2016 – 31 December 2016: CZK 3,193 (€ 124) per MWh.
  • Put into operation from 1 January 2017 – 31 December 2017: CZK 2,796 (€ 108) per MWh
  • Put into operation from 1 January 2018 – 31 December 2018: CZK 2,741 (€ 106) per MWh (No. 1.6., No. 1.6.2., No. 1.6.3., No. 1.6.4. and No. 1.6.5. of the Price Decision of the Energy Regulatory Office No. 3/2017).

Biomass

The amount of the tariff varies according to the technology used (O3-O1):

  • Pure biomass firing plants in new plants put into operation from 1 January 2008 – 31 December 2012: CZK 2,630-4,580 (€ 102-178) per MWh.
  • Pure biomass firing plants in new plants put into operation from 1 January 2013 – 31 December 2013: CZK 2,060-3,730 (€ 80-145) per MWh.
  • Pure biomass firing plants in new plants put into operation from 1 January 2014 – 31 December 2014: CZK 1,310-3,335 (€ 51-129) per MWh.
  • Pure biomass firing plants in new plants put into operation from 1 January 2015 – 31 December 2018: CZK 1,245-3,263 (€ 48-127) per MWh.
  • Pure biomass firing plants in existing plants put into operation by 31 December 2012: CZK 1,460-2,830 (€ 57-110) per MWh.
  • Pure biomass firing plants put into operation by 31 December 2007: CZK 2,530-3,900 (€ 98-151) per MWh (No. 1.7. Price Decision of the Energy Regulatory Office No. 3/2017).

Addressees

Eligible party: The subjects eligible for the purchase of electricity exported to the grid are the producers of electricity from renewable sources (§ 8 par. 2 Act No. 165/2012).

Obligated party: The “mandatory purchaser” is obliged to purchase the entire amount of electricity eligible for support (§ 10 par. 2 Act No. 165/2012). The mandatory purchaser will be selected by the Ministry of Industry and Trade from electricity trading licence holders (§ 2 Letter q Act No. 165/2012). 

Procedure

Process flow

If a given plant operator chooses to be supported through the feed-in tariff, it shall conclude a contract with the grid operator.

Competent authority

The scope and amount of the promotion of electricity from RES shall be defined in a price decision of the Energy Regulatory Office (§ 4 par. 7 Act No. 165/2012).

Degression

The Energy Regulatory Office determines the feed-in tariffs for the individual technologies used for the generation of renewable electricity for the calendar year to come (§ 12 par. 1 Act No. 165/2012)
The Energy Regulatory Office has to ensure that the simple return of investment period shall reach 15 years (§ 12 par. 1 Letter a Act No. 165/2012) and the profit rate for one unit of electricity from RES is stable from the day of the commissioning until the end of the eligibility period; including an annual inflationary adjustment of 2%. This does not apply on biogas, biomass and bioliquids (§ 12 par. 1 Letter b Act No. 165/2012). 

Cap

In the year in which the plant was put into operation, the feed-in tariff shall not exceed CZK 4,500 (approx. € 174) per MWh (§ 12 par. 6 Act No. 165/2012).

Eligibility period

The tariff for all eligible technologies is statutorily guaranteed for 20 years. Hydro-energy plants are exempt from this rule, as their tariff will be paid for 30 years (Annex Decree No. 296/2015).

Distribution of costs

Consumers

In principle, the grid operators are obliged to bear the costs of the feed-in tariff scheme. In practice, however, they pass on the costs arising from the support of renewable electricity generation to the end users.

Distribution mechanism

Consumers – Grid operators. The costs arising from the feed-in tariff scheme are borne by consumers through a surcharge (“příspěvek na obnovitelné zdroje”) added to the electricity price. This surcharge was lowered through the amendment of Act No. 165/2012 and set at a maximum amount of CZK 495 (€ 19) per MWh (§ 28 par. 5 Act No. 165/2012).

Grid operators – Market operator. The transmission and distribution grid operators are obliged to reimburse the market operator all expenses for the transmission and distribution of electricity in order to cover the costs associated with the support of electricity (§ 13 par. 1 Act No. 165/2012).

Market operator – Mandatory purchasers. The market operator is obliged to pay the mandatory purchaser the difference between the feed-in tariff and the hourly market price as well as an additional price according to the amount of electricity obligatorily purchased from the RES plant operators (§ 13 par. 2 Act No. 165/2012).

Mandatory purchasers – RES plant operators. The mandatory purchasers are obligated to reimburse the plant operators for the electricity they feed into the grid (§ 10 par. 2 Act No. 165/2012).