As a reminder, the Bill includes a proposal to introduce overcompensation checks. These checks are intended to determine whether the support has given a particular group of supported power plants a return on investment (internal rate of return – IRR) considered acceptable by Czech authorities and the European Commission (6.3% to 10.6%). In 2020 Minister Havlíček stated that individual supported power plants would have a maximum permitted IRR as follows:
In practice this will mean that if the checks determine that photovoltaic plants as a group (classification into groups is still subject to debate) reaches an IRR over 6.3%, one of the “compensation” measures will be imposed in order to limit or halt funds paid to photovoltaic power plant operators in the future. Extremely lucrative projects may even be required to repay support already received. A date has not yet been set for discussion in the economic committee. Considering the proposed impact of these changes we can expect the debate in future readings to be heated.
We will be happy to discuss any questions you may have.
Source: bpv Braun Partners
26th October 2020
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