Renewable energy policy database and support: single

Premium tariff: Green Bonus

Updated: 10.01.2019

Author: Boris Valach

Please note: In August 2013, the Czech Parliament adopted an amendment to Act No. 165/2012, which de facto abolished the premium 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). 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 premium tariff (Transitional Provision No. 1 and No. 2 Act No. 165/2012).

Plant operators may decide that the electricity they generate should be supported through bonus payments of a statutorily set amount per MWh (No. 1.2. Price Decision of the Energy Regulatory Office No. 3/2018). Operators of renewable energy plants receive this bonus on top of the regular market price of electricity. The green bonus is provided in an annual or hourly mode (§ 9 par. 1 Act No. 165/2012).

Eligible technologies

In principle, the premium tariff scheme applies to all renewable electricity generation technologies (§ 4 par. 4 Act No. 165/2012). Electricity produced from RES plants over 100 kW (30 kW for PV and 10 MW for hydro power plants), with the exception of a biodegradable part of municipal waste or produced by co-incineration a renewable source and a non-renewable source, is only eligible for the hourly support scheme (§ 9 par. 4 Letter b Act No. 165/2012). According to the amendment to Act No. 165/2012 (Act No. 310/2013 Coll.), newly constructed renewable energy plants, with the exception of small hydro power plants (up to 10 MW of installed capacity), are only eligible for the premium tariff if put into operation before 31 December 2013 (§ 4 par. 10 Act No. 165/2012). However, small hydro power plants, their reconstruction or modernisation was finished in the period from 2 October 2013 to 31 December 2015 are considered to be put into operation on this date (§ 11 par. 10 Act No. 165/2012). Operators of wind, hydro, geothermal or biomass power plants up to 100 kW of installed capacity are eligible for support if their plants are 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 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 (par. 1 Transitional Provision No. 1 Act No. 165/2012). Furthermore, requirements for minimum standards of energy efficiency do not apply for geothermal, solar, wind, and hydro power energy plants (§ 4 par. 4 Act No. 165/2012).

Wind energy	Eligible under the following conditions: Only newly installed wind power plants up to 100 kW are eligible, of which production technology units (especially the rotor and generator) are not older than two years (No. 1.9.1. Price Decision of the Energy Regulatory Office No. 3/2018). 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).
Solar energy	Eligible under following conditions: Only one installation per rooftop or façade is 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).
Geothermal energy	Eligible are 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, as well as securing 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 under the following condition: Only small hydro-energy plants (capacity of up to 10 MW) are eligible (§ 8 par. 2 Act No. 165/2012, No. 1.6.2. Price Decision of the Energy Regulatory Office No. 3/2018). 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 new electricity generating plants is eligible (No. 1.7. Price Decision of the Energy Regulatory Office No. 3/2018). The building permit must have been issued before 2 October 2013 and the installation must have been put into operation until December 2015 (par. 2 Transitional provisions 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

Generally, the green bonus is provided either in an annual or an hourly mode. The annual green bonuses are set by the Energy Regulatory Office for the following calendar year. The amount of the hourly green bonuses will be derived from the market price of electricity on the day-ahead market; their amount will therefore change at every hour (§ 11 par. 8 Act No. 165/2012 in conjunction with No. 1.2. Price Decision of the Energy Regulatory Office No. 3/2018). Listed below are the annual green bonuses 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 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 2010: CZK 1,826 (€ 70) per MWh. From 1 January – 31 December 2011: CZK 1,768 (€ 68) per MWh. From 1 January – 31 December 2012: CZK 1,711 (€ 66) per MWh. From 1 January – 31 December 2013: CZK 1,537 (€ 59) per MWh. From 1 January – 31 December 2014: CZK 1,374 (€ 53) per MWh. From 1 January – 31 December 2015: CZK 1,293 (€ 50) per MWh. From 1 January – 31 December 2016: CZK 1,198 (€ 46) per MWh. From 1 January – 31 December 2017: CZK 1,158 (€ 45) per MWh. From 1 January – 31 December 2018: CZK 1,119 (€ 43) per MWh. From 1 January – 31 December 2019: CZK 1,080 (€ 42) per MWh (No. 1.9. Price Decision of the Energy Regulatory Office No. 3/2018).
Solar energy	Since 1 January 2014, the premium tariff for new PV installations has been abolished. Tariffs for PV installations put into operation before 31 December 2013 depend on the date of commissioning and are set as follows: From 1 January – 31 December 2010 up to 30 kW: CZK 13,456 (€ 517) per MWh. From 1 January – 31 December 2010 above 30 kW: CZK 13,500 (€ 519) per MWh. From 1 January – 31 December 2011 up to 30 kW: CZK 7,597 (€ 292) per MWh. From 1 January – 31 December 2011 from 30 to 100 kW: CZK 5,886 (€ 226) per MWh. From 1 January – 31 December 2011 above 100 kW: CZK 5,414 (€ 208) per MWh. From 1 January – 31 December 2012 up to 30 kW: CZK 5,887 (€ 226) per MWh. From 1 January – 30 June 2013 up to 5 kW: CZK 2,650 (€ 102) per MWh. From 1 January – 30 June 2013 from 5 kW to 30 kW: CZK 1,998 (€ 77) per MWh. From 1 July – 31 December 2013 up to 5 kW: CZK 2,177 (€ 84) per MWh. From 1 July – 31 December 2013 from 5 kW to 30 kW: CZK 1,549 (€ 60) per MWh (No. 1.10. Price Decision of the Energy Regulatory Office No. 3/2018). The green bonus for PV installations put into operation between 1 January 2010 and 31 December 2010 is subject to a tax of 11% (except for building-integrated installations with a capacity of up to 30 kW) (§ 17 in conjunction with § 18 Letter b Act No. 165/2012). The tax applies to all electricity generated in the respective 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 2,226 (€ 86) per MWh. From 1 January – 31 December 2019: CZK 2,160 (€ 83) per MWh (No. 1.11. Price Decision of the Energy Regulatory Office No. 3/2018).
Biogas	Since 1 January 2014, the premium tariff for biogas plants has been abolished. Tariffs for biogas plants put into operation before 31 December 2013 are set as follows: Landfill and sewage gas put into operation from 1 January 2006 – 31 December 2012: CZK 1,875 (€ 72) 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 2,990 (€ 115) per MWh. Biogas plants (AF2) put into operation by 31 December 2012: CZK 2,460 (€ 95) per MWh. Biogas plants (AF) put into operation from 1 January 2013 – 31 December 2013: CZK 2,420 (€ 93) 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 1,910 (€ 73) 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 1,875 (€ 72) (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 2,990 (€ 115) per MWh. Put into operation from 1 January – 31 December 2012 and not producing thermal energy CZK 2,420 (€ 93) (No. 1.8. Price Decision of the Energy Regulatory Office No. 3/2018).
Hydro-power	Small hydro power plants at existing locations: Put into operation by 31 December 2004: CZK 1,105 (€ 42) per MWh. Put into operation from 1 January 2005 – 31 December 2013: CZK 1,724 (€ 66) per MWh. Put into operation from 1 January 2014 – 31 December 2014: CZK 1,669 (€ 64) per MWh. Put into operation from 1 January 2015 – 31 December 2015: CZK 1,615 (€ 62) per MWh. Put into operation from 1 January 2016 – 31 December 2016: CZK 1,562 (€ 60) per MWh. Put into operation from 1 January 2017 – 31 December 2017: CZK 1,213 (€ 47) per MWh. Put into operation from 1 January 2018 – 31 December 2018: CZK 1,168 (€ 45) per MWh. Put into operation from 1 January 2019 – 31 December 2019: CZK 1,124 (€ 43) per MWh. Reconstructed small hydro power plants: Put into operation by 31 December 2013: CZK 1,724 (€ 66) per MWh. Put into operation from 1 January 2014 – 31 December 2014: CZK 1,669 (€ 64) per MWh. Put into operation from 1 January 2015 – 31 December 2015: CZK 1,615 (€ 62) per MWh. Put into operation from 1 January 2016 – 31 December 2016: CZK 1,562 (€ 60) per MWh. Put into operation from 1 January 2017 – 31 December 2017: CZK 1,213 (€ 47) per MWh. Put into operation from 1 January 2018 – 31 December 2018: CZK 1,168 (€ 45) per MWh. Put into operation from 1 January 2019 – 31 December 2019: CZK 1,124 (€ 43) per MWh. Small hydro power plants at new locations: Put into operation from 1 January 2006 – 31 December 2007: CZK 2,036 (€ 78) per MWh. Put into operation from 1 January 2008 – 31 December 2009: CZK 2,219 (€ 85) per MWh. Put into operation from 1 January 2010 – 31 December 2010: CZK 2,506 (€ 96) per MWh. Put into operation from 1 January 2011 – 31 December 2011: CZK 2,426 (€ 93) per MWh. Put into operation from 1 January 2012 – 31 December 2012: CZK 2,574 (€ 99) per MWh. Put into operation from 1 January 2013 – 31 December 2013: CZK 2,548 (€ 98) per MWh. Put into operation from 1 January 2014 – 31 December 2014: CZK 2,477 (€ 95) per MWh. Put into operation from 1 January 2015 – 31 December 2015: CZK 2,407 (€ 93) per MWh. Put into operation from 1 January 2016 – 31 December 2016: CZK 2,167 (€ 83) per MWh. Put into operation from 1 January 2017 – 31 December 2017: CZK 1,762 (€ 68) per MWh. Put into operation from 1 January 2018 – 31 December 2018: CZK 1,706 (€ 66) per MWh. Put into operation from 1 January 2019 – 31 December 2019: CZK 1,651 (€ 63) per MWh (No. 1.6. Price Decision of the Energy Regulatory Office No. 3/2018).
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 1,500-3,450 (€ 58-133) per MWh. Pure biomass firing plants in new plants put into operation from 1 January 2013 – 31 December 2013: CZK 930-2,600 (€ 36-100) per MWh. Pure biomass firing plants in new plants put into operation from 1 January 2014 – 31 December 2014: CZK 180-2,205 (€ 7-85) per MWh. Pure biomass firing plants in new plants put into operation from 1 January 2015 – 31 December 2019: CZK 115-2,133 (€ 4-82) per MWh. Pure biomass firing plants in existing plants put into operation by 31 December 2012: CZK 330-1,700 (€ 13-65) per MWh. Pure biomass firing plants put into operation by 31 December 2007: CZK 1,400-2,770 (€ 54-106) 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 green bonus, it shall prove to the grid operator that he has concluded a contract with the market operator. Plant operators that consume the total amount of electricity they generate need not prove the existence of a contract.
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 green bonus. 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 green bonus 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 – RES plant operators. The market operator is 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 green bonus. 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 green bonus 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 – RES plant operators. The market operator is 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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