26th August 2016

EC okays Czech renewables subsidy mechanisms

On 23 August, the European Commission ruled that two subsidy mechanisms for renewable energy sources in the Czech Republic are in line with state aid rules. All subsidies paid under these schemes will therefore be deemed legal, because they are seen as contributing to the renewables target and as not too much distorting the free market. This topic was a hot issue in 2015, when some subsidy mechanisms did not have an EC approval. The EC´s decision is valid for a mechanism aimed at hydropower (stations of up to 10 MW) and biogas (up to 0.5 MW). The two subsidy schemes are worth some 700 million CZK combined. According to Euroskop, though, the Czech Republic still has no official approval of some past subsidy mechanisms, dating from 2006-2012. The final decision is awaited in September. The Czech Republic has a binding target of 14% share of renewables in the energy mix until 2020.

For more, click here and here.

Members of the American Chamber of Commerce in the Czech Republic