Renewable energy policy database and support: single

Feed-in tariff (State-purchasing Price)

Updated: 10.01.2019

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 since 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). The holder of an authorisation for the construction of a renewable power plant using wind, geothermal, water or biomass energy, issued before 2 October 2013 which puts a RES plant into operation within six years of granting the authorisation is entitled to support. In addition, wind, hydro, geothermal or biomass plants with the capacity up to 100 kW that were put into operation before 31 December 2015 and their building permit was issued before 2 October 2013 are eligible for support in the form of feed-in tariff (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, i.e. on 1 January for a respective 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 Coll.), 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). Moreover, wind, hydro, geothermal or biomass plants with the capacity up to 100 kW that were put into operation before 31 December 2015 and their building permit was issued before 2 October 2013 are eligible for feed-in tariff support (Transitional Provision No. 1 and No. 2 Act No. 165/2012). In addition, requirements for minimum efficiency of energy use do not apply for geothermal, solar, wind and hydro power energy plants (§ 4 par. 4 Act No. 165/2012).

Wind energy	Eligible under following conditions: The maximum capacity must not exceed 100 kW (§ 8 par. 2 Act No. 165/2012). Building permit was issued before 2 October 2013 and a plant was put into operation before 31 December 2015. The holder of an authorisation for the construction of wind plant issued before 2 October 2013 has to put a RES plant into operation within six years of granting the authorisation (par. 1 Transitional Provision No. 1 Act No. 165/2012). Process equipment, mainly rotor and generator shall not be older than 2 years (No. 1.9.1. Price Decision of the Energy Regulatory Office No. 3/2018).
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). The holder of an authorisation for the construction of geothermal plant issued before 2 October 2013 has to put a RES plant into operation within six years of granting the authorisation (par. 1 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 (§ 8 par. 2 Act No. 165/2012). The holder of an authorisation for the construction of hydro power plant issued before 2 October 2013 has to put a RES plant into operation within six years of granting the authorisation (par. 1 Transitional Provision No. 1 Act No. 165/2012).
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 electricity generating plants is eligible (No. 1.7. Price Decision of the Energy Regulatory Office No. 3/2018). 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). The holder of an authorisation for the construction of biomass plant issued before 2 October 2013 has to put a RES plant into operation within six years of granting the authorisation (par. 1 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. 3/2018). Listed below are the feed-in tariff levels as determined by the Energy Regulatory Office in its Price Decision No. 3/2018 of 25 September, 2018 that enters into force on 1 January 2019 and cancels the Price Decision No. 3 and 9/2017.

Wind energy	Tariff levels depend on the date of commissioning and are set as follows: From 1 January – 31 December 2013: CZK 2,387 (€ 92) per MWh. From 1 January – 31 December 2014: CZK 2,224 (€ 85) per MWh. From 1 January – 31 December 2015: CZK 2,143 (€ 82) per MWh. From 1 January – 31 December 2016: CZK 2,048 (€ 79) per MWh. From 1 January – 31 December 2017: CZK 2,008 (€ 77) per MWh. From 1 January – 31 December 2018: CZK 1,969 (€ 76) per MWh. From 1 January – 31 December 2019: CZK 1,930 (€ 74) per MWh (No. 1.9. Price Decision of the Energy Regulatory Office No. 3/2018).
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 8,787 (€ 338) per MWh for installations with a capacity of up to 30 kW. From 1 January – 31 December 2011: CZK 6,916 (€ 266) per MWh for installations with a capacity between 30 to 100 kW. From 1 January – 31 December 2011: CZK 6,444 (€ 248) per MWh for installations with a capacity above 100 kW. From 1 January – 31 December 2012: CZK 7,077 (€ 272) per MWh for installations with a capacity of up to 30 kW. From 1 January – 30 June 2013: CZK 3,840 (€ 148) per MWh for installations with a capacity of up to 5 kW. From 1 January – 30 June 2013: CZK 3,188 (€ 123) per MWh for installations with a capacity between 5 to 30 kW. From 1 July – 31 December 2013: CZK 3,367 (€ 129) per MWh for installations with a capacity of up to 5 kW. From 1 July – 31 December 2013: CZK 2,739 (€ 105) per MWh for installations with a capacity between 5 to 30 kW (No. 1.10. Price Decision of the Energy Regulatory Office No. 3/2018). 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 2018: CZK 3,356 (€ 129) per MWh. From 1 January – 31 December 2019: CZK 3,290 (€ 126) per MWh (No. 1.11. Price Decision of the Energy Regulatory Office No. 3/2018).
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 2,965 (€ 114) per MWh. Landfill and sewage gas put into operation from 1 January 2013 – 31 December 2013: CZK 2,140 (€ 82) per MWh. Biogas plants (AF1) put into operation by 31 December 2011: CZK 4,120 (€ 158) per MWh. Biogas plants (AF2) put into operation by 31 December 2012: CZK 3,550 (€ 136) per MWh. Biogas plants (AF) put into operation from 1 January 2013 – 31 December 2013: CZK 3,550 (€ 136) 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 (€ 117) 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 2,965 (€ 114) (No. 1.8. Price Decision of the Energy Regulatory Office No. 3/2018). 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 (€ 158) per MWh. Put into operation from 1 January – 31 December 2012 and not producing thermal energy CZK 3,550 (€ 136) (No. 1.8. Price Decision of the Energy Regulatory Office No. 3/2018).
Hydro-power	Small hydro power plants (with installed capacity up to 10 MW) at existing locations: Put into operation by 31 December 2004: CZK 2,195 (€ 84) per MWh. Put into operation from 1 January 2005 – 31 December 2013: CZK 2,814 (€ 108) per MWh. Put into operation from 1 January 2014 – 31 December 2014: CZK 2,759 (€ 106) per MWh. Put into operation from 1 January 2015 – 31 December 2015: CZK 2,705 (€ 104) per MWh. Put into operation from 1 January 2016 – 31 December 2016: CZK 2,652 (€ 102) per MWh. Put into operation from 1 January 2017 – 31 December 2017: CZK 2,303 (€ 89) per MWh. Put into operation from 1 January 2018 – 31 December 2018: CZK 2,258 (€ 87) per MWh. Put into operation from 1 January 2019 – 31 December 2019: CZK 2,214 (€ 85) per MWh. Note: the small hydro power plants at existing locations are plants which do not meet the conditions for a small hydro power plant at existing locations nor the definition of reconstructed small hydro power plants. Reconstructed small hydro power plants: Put into operation by 31 December 2013: CZK 2,814 (€ 108) per MWh. Put into operation from 1 January 2014 – 31 December 2014: CZK 2,759 (€ 106) per MWh. Put into operation from 1 January 2015 – 31 December 2015: CZK 2,705 (€ 104) per MWh. Put into operation from 1 January 2016 – 31 December 2016: CZK 2,652 (€ 102) per MWh. Put into operation from 1 January 2017 – 31 December 2017: CZK 2,303 (€ 89) per MWh. Put into operation from 1 January 2018 – 31 December 2018: CZK 2,258 (€ 87) per MWh. Put into operation from 1 January 2019 – 31 December 2019: CZK 2,214 (€ 85) per MWh. Note: the reconstructed small hydro power plants are existing power plants, which were reconstructed or modernised after 13 August 2002 (1.6.5 Price Decision of the Energy Regulatory Office No. 3/2018). Small hydro power plants at new locations: Put into operation from 1 January 2006 – 31 December 2007: CZK 3,126 (€ 120) per MWh. Put into operation from 1 January 2008 – 31 December 2009: CZK 3,309 (€ 127) per MWh. Put into operation from 1 January 2010 – 31 December 2010: CZK 3,596 (€ 138) per MWh. Put into operation from 1 January 2011 – 31 December 2011: CZK 3,516 (€ 135) per MWh. Put into operation from 1 January 2012 – 31 December 2012: CZK 3,664 (€ 141) per MWh. Put into operation from 1 January 2013 – 31 December 2013: CZK 3,638 (€ 140) per MWh. Put into operation from 1 January 2014 – 31 December 2014: CZK 3,567 (€ 137) per MWh. Put into operation from 1 January 2015 – 31 December 2015: CZK 3,497 (€ 134) per MWh. Put into operation from 1 January 2016 – 31 December 2016: CZK 3,257 (€ 125) per MWh. Put into operation from 1 January 2017 – 31 December 2017: CZK 2,852 (€ 110) per MWh Put into operation from 1 January 2018 – 31 December 2018: CZK 2,796 (€ 107) per MWh Put into operation from 1 January 2019 – 31 December 2019: CZK 2,741 (€ 105) per MWh (No. 1.6. Price Decision of the Energy Regulatory Office No. 3/2018). Note: the small hydro power plants at new locations are plants which were put into operation in a locality where since 1 January 1995 no power plant has been connected to the transmission or distribution grid.
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 (€ 101-176) per MWh. Pure biomass firing plants in new plants put into operation from 1 January 2013 – 31 December 2013: CZK 2,060-3,730 (€ 79-143) per MWh. Pure biomass firing plants in new plants put into operation from 1 January 2014 – 31 December 2014: CZK 1,310-3,335 (€ 50-128) per MWh. Pure biomass firing plants in new plants put into operation from 1 January 2015 – 31 December 2019: CZK 1,245-3,263 (€ 48-125) per MWh. Pure biomass firing plants in existing plants put into operation by 31 December 2012: CZK 1,460-2,830 (€ 56-109) per MWh. Pure biomass firing plants put into operation by 31 December 2007: CZK 2,530-3,900 (€ 97-150) per MWh (No. 1.7. Price Decision of the Energy Regulatory Office No. 3/2018).

Addressees

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

Cap

Eligibility period

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.
State	The costs of electricity (and heat) operational support are covered by the market operator from the funds made up of: a) revenues from the payments of the price of the service of the distribution system service and the components of the price of the transmission system service in support of electricity (“příspěvek na obnovitelné zdroje”), b) revenues from payments for failure to meet the minimum energy efficiency of lignite burning, c) a subsidy from the state budget, d) proceeds from auctioning of allowances (§ 28 par. 1 Act No. 165/2012). The subsidy from the state budget (Letter c) is determined on the basis of the funds referred above (Letter a, b and d) in order to cover the total funds estimated for the electricity (and heat) operational support (§ 28 par. 3 Act No. 165/2012).
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). The market operator shall have the right to reimburse the costs of electricity support (and heat) operational support (§ 28 par. 2 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).

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.

State

The costs of electricity (and heat) operational support are covered by the market operator from the funds made up of:

a) revenues from the payments of the price of the service of the distribution system service and the components of the price of the transmission system service in support of electricity (“příspěvek na obnovitelné zdroje”),
b) revenues from payments for failure to meet the minimum energy efficiency of lignite burning,
c) a subsidy from the state budget,
d) proceeds from auctioning of allowances (§ 28 par. 1 Act No. 165/2012).

The subsidy from the state budget (Letter c) is determined on the basis of the funds referred above (Letter a, b and d) in order to cover the total funds estimated for the electricity (and heat) operational support (§ 28 par. 3 Act No. 165/2012).

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). The market operator shall have the right to reimburse the costs of electricity support (and heat) operational support (§ 28 par. 2 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).

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