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Half a year ago, Pavel Tykač’s company Sev.en Energy announced that it will probably shut down its Počerady and Chvaletice power plants as early as spring 2025, because they will start making losses. Now Sev.en spokeswoman Gabriela Sáričková Benešová admits to a one-year delay: “As much as it looks like we should remain in operation even in January 2026, it’s just an estimate that can change quickly in an unstable and unpredictable market.”
In addition to Počerad and Chvaletic, four other large coal-fired power plants are in play: Tušimice, Prunéřov and Ledvice of the ČEZ group. And then Tisová, which is operated by Sokolovská uhelná. Their decline will not start next year, but it is still true that it will come by the end of the decade. Faster than the government and its officials anticipated.
“It is enough to look at the prices of electricity in the following years on the stock exchange and the permit market. We see that the profitability of coal resources will decline to negative values by the end of the decade. Therefore, we expect the shutdown of our coal resources. By the end of the decade, their profitability will be very low or non-existent,” says ČEZ spokesman Ladislav Kříž.
“With the end of Tisová, we are looking at the years 2029 to 2030, if the economy allows us,” adds Jan Filip, head of the board of Sokolovská uhelná. “We don’t know if our power plants will still be running in 2026, but we know almost certainly that if nothing changes, no coal source will survive in the Czech Republic by 2030,” concludes Tykač’s spokesperson.
The Czech Republic is thus not threatened by the “supercritical scenario” of closing all six power plants by 2027, which was presented by the Ministry of Industry in the summer. But there is a danger that we will not be able to find a replacement for them by the end of the decade. The latest warning comes from the fresh Report on Resource Adequacy for 2040 from the state company ČEPS.
ČEPS is considering two scenarios, both of which count on the closure of the six mentioned power plants by 2030. The “respondent” scenario assumes that after 2030 some smaller heating plants and competitive power plants will still burn coal in our country. The “progressive” scenario envisages the virtually complete end of coal within six years. But both scenarios assume that the transformation of the heating industry will be completed by 2030, bringing up to 3,000 megawatts of power in highly efficient electricity and heat production.
In both scenarios, a key risk parameter is exceeded in the Czech Republic in the 1930s – a reliability standard called LOLE (the so-called Loss of Load Expectation indicates the number of hours in a year when the demand for electricity can be expected to exceed production plus achievable imports). According to European rules, the critical limit of LOLE is 6.7 hours a year, if the value is exceeded, energy security is not ensured.
According to the respondent’s scenario, LOLE will reach 10.3 hours in the Czech Republic in 2035, for which we will be dependent on imports. Last year we still exported 9 TWh of excess production, from next year we will become an importer from an exporter, and around 2035 we would have to cover up to 18.2 percent of consumption with imports.
The progressive scenario envisages a faster build-up of renewable resources, but it also signals resource inadequacy by 2035 – LOLE is 8.7 hours per year, and even 13.7 hours by 2040. And in 2030, we would have to cover a full fifth of our consumption through imports.
ČEPS also investigated how the Czech system would perform in an above-average cold and below-average windy year, such as 1985. Here, in the case of the respondent scenario, the LOLE rises to 14 hours already in 2030, in the progressive scenario it comes out to 41 risk hours at the turn of the decade. I remind you that the safety limit is 6.7 hours of LOLE per year.
ČEPS itself points out that this is not certain with the imports that have been incorporated into the models. He expects electricity surpluses in France and Germany, but at the same time he writes: “The question remains whether these surpluses will be used to produce hydrogen for industry there, or whether they will be available for export.”
He further emphasizes that when assessing import options, he was based on data from the beginning of 2023. At that time, the Germans were counting on the construction of more gas power plants than the government’s Kraftwerkstrategy ultimately planned. Germany does not yet have legalized capacity payments for these new gas plants, without which construction will not start. With the recent fall of the government, the whole process will be further delayed. This increases uncertainty for Czech imports.
This threat became apparent last week when several days of no wind and clouds crippled Germany’s solar and wind farms. The Germans had to massively import themselves, prices soared to over 800 euros per MWh on the spot market. It is a question of where we would import from in such a situation if they did not eat domestic coals. For them, the German “Dunkelflaute” was a blessing. In these periods, they go full speed and export expensive fossil energy to the Germans. “Last week, Czech lignite resources reached their highest performance since the crisis year of 2022,” says Sáričková Benešová.
There is another side to this coin. At a time when the weather favors renewable sources, the Germans export cheap green energy to us for a change, which puts coal sources out of the game and pushes them to decline faster. “Although our power plants are still among the cheapest sources in the Czech Republic in terms of costs, due to the setting of the European market, they are falling into ever greater losses,” says a spokesperson for Sev.en.
According to the ČEPS report, we are able to cope with moving away from coal if the Germans have enough electricity for export and if we manage to build three thousand MW of gas power in heating plants by 2030. Even then, according to ČEPS, it will be necessary to “resource” between 2030 and 2035 energy industry for additional gas power plants with an output of 1600 to 1900 MW. The problem is that the basic premise of these plans – the transformation of the heating industry – is fraying. Although energy workers have projects ready.
The ČEZ and EPH groups alone are preparing the construction of 11 gas blocks for the production of heat and electricity with a combined output of 1,300 MW in Mělník, Trmice, Opatovice, Komořany and Pilsen. They are waiting for the granting of public support – both investment and operational. The new sources will have to be used during the winter part of the year, in the summer they will increasingly be pushed out of the electricity market by solar panels. The sale of energy alone will not guarantee returns to investors, subsidy mechanisms are necessary.
There is no problem with money: 100 billion crowns are available in the Modernization Fund for investment subsidies for the heating industry, the first projects have already been approved. Cogeneration investors are to compete for operating subsidies in auctions, which the Ministry of Industry has planned for two waves. In total, it has thus prepared support for the entire mentioned 3000 MW. “The heating industry could thus become a key tool to solve the replacement of coal,” says Jiří Feist, strategic head of the power plant part of Daniel Křetínský’s EPH holding.
It just rubs off. The first auction for cogeneration with a capacity of 1,280 MW was announced by the MPO in the summer, the antimonopoly office began to investigate it in September, and the evaluation is awaited. ÚOHS has not yet started administrative proceedings. But if they happen, ready-made projects can be put on ice for many months.
According to Feist, the ready construction of the new gas plant can be completed in three years. However, until the subsidies are in place, investors cannot sign contracts to purchase turbines. And they may lose pre-agreed deliveries, which would move the projects further in time. At the same time, the subsidy from the Modernization Fund and the MPO program must be used up by 2030.
Meanwhile, the coal slowdown continues. This can be seen in the declining profitability of power plants, but also in mining. Demand for coal is falling. One of the two quarries in the Tykač Group is closing this year. Sokolovská uhelná earned 885 million crowns last year, this year, according to Filip, it is already expecting a loss of around a billion – also due to mining. For the ČEZ Group, which announced its quarterly results this week, mining is also reducing profits. “For the first three quarters, the coal production of Severočeské doly fell by 12 percent. The EBITDA operating profit of the mining segment fell by 28 percent,” says Kříž.
Another factor is looming here that can accelerate the decline of coal. The consulting firm Invicta Bohemica, in a study prepared for President Petr Pavel, examined the effect of the falling demand for coal on the sustainability of domestic quarries. On the basis of information from all 22 domestic heating plants and competitive energy companies, she calculated how their consumption will develop in the coming years. And she came to a warning conclusion.
If all six large power plants are finished in our country by 2030, the domestic coal mines will end before all the heating plants in the country have left coal. “At the same time, some heating plants and especially racing energy companies are not planning to leave coal at all,” says Invicta boss Jan Vondráš.
According to Invicta Bohemica’s calculations, maintaining mining in the Czech Republic is sustainable as long as coal sales do not fall below the threshold of 15.5 million tons per year. “Even if we stop exporting electricity, we will still be able to produce until 2029. But if the six condensing power plants end, the demand for coal will drop to such an extent that mining will not be sustainable in any of the domestic quarries,” says Vondráš. It would also mean a loss of supplies for heating plants and power plants, which could otherwise remain in operation.
As for the pace of the slowdown, the progressive scenario of ČEPS would thus be fulfilled. At the same time, we do not know for sure whether it will be possible to fulfill its basic premises – the possibility of importing electricity from Germany and the newly built 3,000 megawatts of gas power. If these two bets fail, the risk for Czech energy security will rise to an unacceptable level.
The Ministry of Industry, which is responsible for energy security, has another possibility of subsidies for loss sources in case of a faster uncontrolled coal decline. “One of the steps is the anchoring of capacity or decarbonization mechanisms in the Czech legislation. Their introduction is possible if, according to ČEPS analyses, there is a threat of a shortage of electricity even when imports are taken into account, which is a situation that is not likely even in the case of a supercritical scenario,” says deputy René Neděla. According to him, the support would enable a faster transition of heating plants to gas.
According to Neděla, the transformation of the heating industry, which today still produces half of the heat supplied in the Czech Republic from coal, is essential for the future of the Czech energy industry. MPO also considers it crucial to adopt legislation for faster permitting and construction of new gas sources, support for green power plants and strengthening of the electricity system. But this does not solve the risk of uncontrolled premature closure of coal mines, delays in the construction of gas pipelines and uncertainty surrounding the import of electricity from Germany.
The possibility that the parliament enacts subsidies for coal-fired power plants is still in play. One such proposal was already dropped last week, when its presenter Berenika Peštová (ANO) herself withdrew it. Even according to people from ANO, the proposed arrangement was not ideal. “But we have to hold the coal for the necessary time. We can’t leave it to the market, we have to have a regime that allows coal to start when needed. We cannot underestimate the risk,” says Karel Havlíček, vice-chairman of ANO, ex-minister of industry.
Even the head of the Chamber’s Economic Committee, Ivan Adamec from the governing ODS, does not rule out enacting the possibility of supporting coal resources as an insurance policy in the event of an emergency. “For now, it’s mostly talked about, ways are being looked for. But it needs to be addressed. We cannot afford to take the risk that we will close most of our lignite power plants and there will be no replacement for them,” he said.
The opposition is starting to negotiate with the Ministry of Industry on a coal support model that would be auctioned. “We can confirm the meeting with the representatives of the opposition. During it, we also touched on the issue of ending the use of coal in power plants, we also discussed possible measures. At the same time, it was agreed that we will meet again and continue the discussion,” said Neděla.
The fight for subsidies for the ending coal business of ČEZ, Sev.en Energy and Sokolovská uhelná is still going on.
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The Hilarious Tragedy of Czech Coal: Don’t Stop ‘Til You Drop!
Welcome to the rollercoaster ride that is the Czech energy landscape! Buckle up, folks, because we’re about to dive into a charming tale of coal, confusion, and a sprinkle of bureaucratic chaos. That’s right, it’s showtime for power plants, and let’s just say the performance has all the makings of a tragicomedy.
So, here’s the scene: half a year ago, our amigo Pavel Tykač proclaimed that Sev.en Energy would be shutting down its Počerady and Chvaletice power plants by spring 2025. Fast-forward to today, and the plot thickens as Gabriela Sáričková Benešová, the company spokesperson, reveals a twist! Drumroll, please: they might keep the lights on until January 2026! It’s like a long-running soap opera, with less romance and many more brownouts.
Now, let’s talk about the other players in this drama — the ČEZ group and its coal-fired pals: Tušimice, Prunéřov, and Ledvice, all eyeing the exit sign. Yes, you heard it right! The coal age is transitioning faster than you can say “green energy” — to the big surprise of the Czech government, who must have thought they were in a coal-fueled time machine. “What’s the rush?” they might be wondering. “We’ve got a decade!” Well, spoiler alert: they don’t.
As Ladislav Kříž, the ČEZ spokesman, hilariously pointed out, the profitability of these coal resources is set to nosedive into the negative faster than a comedian’s set on a bad night. By 2030, our beloved coal-powered energy sources might become as useful as a chocolate teapot. But hold your coal carts — we might not even have a decent backup plan in place by then! Cue dramatic music.
And if you thought all this was a bit boring, wait ’til you hear about the ominous LOLE. Yes, LOLE — Loss of Load Expectation — which sounds more like a new-age mindfulness retreat than an electrifying statistic! But, in reality, it indicates how many hours a year you can expect to be left in the dark. Spoiler: it’s not looking good. By 2035, we might be living under the glow of imported electricity, as domestic production takes a sharp dive. Talk about a plot twist!
Ah, imports! Just when you think you’ve got your energy game sorted, the Germans decide they want to keep all their power for themselves. Don’t you just hate when you offer to share your chocolate, and your friends eat it all? Similarly, if Germany isn’t producing surplus electricity, guess who’s going to be left in the cold? That’s right, folks—us! Who knew that sharing your energy is a high-stakes game?
And let’s not overlook the “supercritical scenario” presented by our well-meaning Ministry of Industry! They assumed we could keep all these plants running until at least 2027, like an eternal sitcom that refuses to get canceled. Spoiler alert: it’s not happening, and we’re getting the axe!
Yet, amid all this chaos, some sparkling hope remains. The proposals for transitioning to gas and green energy are out there, twinkling like fairy lights in the dark coal mine. The big question? Will the powers that be be able to pull it off before the coal industry crumbles like a stale cookie? With a whopping 100 billion crowns available for investment in modernization, it looks promising. But just like in the best stand-up routines, timing is everything. And with so much bureaucracy at play, we might be waiting until the cows come home — or at least, until the gas turbines spin up.
The duality of our energy scene is just chef’s kiss, isn’t it? On the one hand, we’ve got a demise of coal looming over us like a dark cloud threatening to burst. On the other, we’re dealing with a supply chain that looks like a notorious game of Twister, where one wrong payment leaves you tangled in delays! You’d think we were trying to build a rocket instead of a power plant.
As our dear industry leaders commence their scramble for subsidies, one can’t help but chuckle (while crying inside, of course). The coal support model negotiations are in full swing — a coup de théâtre of epic proportions! It’s a waiting game full of plotting and posturing, akin to a classic whodunit where everyone knows the culprit, yet nobody can seem to do anything about it.
In conclusion, if you’re following this tragicomic journey of Czech coal, grab the popcorn! The next act is sure to be filled with mind-boggling twists, jaw-dropping plots, and the delightful absurdity of it all. Until then, let’s keep cheering for the coal miners, the power producers, and those brave enough to plan for a greener future! And remember, the show must go on!
So, if you want to keep up with the latest shenanigans in Czech business, don’t forget to subscribe to the Cash Only newsletter — because who needs drama on Netflix when you’ve got reality unfolding in real-time?
You are reading a sample from the Cash Only newsletter, where esteemed commentators Martin Jašminský, Zuzana Kubátová, Jiří Zatloukal, and Jiří Nádoba provide insights on the latest developments in Czech business every Friday. If you’re intrigued by the topics explored in Cash Only, consider subscribing to the newsletter for detailed updates.
Half a year ago, the prominent Sev.en Energy, led by Pavel Tykač, publicly declared its plans to close the Počerady and Chvaletice coal-fired power plants by spring 2025. However, recent statements from Sev.en’s spokeswoman, Gabriela Sáričková Benešová, indicate this shutdown may now be postponed by a year, suggesting a possible operational extension into January 2026. She cautioned, “This timeline is merely an estimate and remains subject to change within the context of a highly volatile and unpredictable energy market.”
In addition to the aforementioned facilities at Počerady and Chvaletice, four significant coal-fired power plants affiliated with the ČEZ group—Tušimice, Prunéřov, and Ledvice—are also facing uncertain futures, along with Tisová, managed by Sokolovská uhelná. While these closures aren’t imminent, it remains evident that they will likely occur before the decade concludes, potentially at a faster pace than previously projected by the government.
“It is sufficient to examine projected electricity prices on the stock exchange and the permit market for the coming years,” noted ČEZ spokesman Ladislav Kříž. “The profitability of coal-powered resources is anticipated to plummet into negative figures by decade’s end, thus leading us to expect the deactivation of our coal resources. By then, profitability will be either extremely low or altogether absent.”
“For Tisová specifically, we are eyeing a closure timeline around the years 2029 to 2030, contingent upon economic conditions,” explained Jan Filip, chairman of the Sokolovská uhelná board. “While we are uncertain about the status of our power plants in 2026, it is almost certain that unless there are significant changes, no coal power source will survive in the Czech Republic by 2030,” concluded Tykač’s spokesperson.
The Czech Republic does not currently face the bleak “supercritical scenario” wherein all six power plants would be shut down by 2027, as projected by the Ministry of Industry last summer. However, there is a looming concern that replacements for these power plants may not be sufficiently established by the decade’s close. This warning is underscored by the newly released Report on Resource Adequacy for 2040 from the state-owned enterprise, ČEPS.
When evaluating future energy scenarios, ČEPS foresees the closure of the six power plants by 2030 in both outlined scenarios. The “respondent” scenario posits that, after 2030, some smaller heating plants and competitively viable power plants could still persist in utilizing coal. Conversely, the “progressive” scenario foresees near-total cessation of coal usage within a concise six-year period. Yet both scenarios hinge on the transformation of the heating industry being completed by 2030, which is expected to yield up to 3,000 megawatts of power through highly efficient electricity and heat production.
In both scenarios, a concerning reliability parameter known as LOLE (Loss of Load Expectation) will exceed acceptable limits for the Czech Republic as it reaches 10.3 hours in 2035, suggesting an escalation in dependency on imports. Last year, the country exported 9 TWh of excess production; however, projections indicate that by 2035, as much as 18.2 percent of consumption would need to be covered through imports.
Furthermore, the progressive scenario anticipates rapid increase in renewable energy sources but equally warns of potential shortages as LOLE rises to 8.7 hours per year by 2035, and further still to 13.7 hours by 2040. Projections indicate that by 2030, a fifth of our energy consumption may need to be satisfied through imports.
In an unusual examination, ČEPS simulated the Czech energy system’s responses during years characterized by extreme cold and minimal wind, mirroring conditions last observed in 1985. Within the respondent scenario, LOLE surged to an alarming 14 hours by 2030. In contrast, the progressive scenario indicates a staggering 41 risk hours at the turn of the decade, underscoring the unsustainable nature of energy reliability when the safety threshold is set at 6.7 hours annually.
Despite drafting import considerations, ČEPS notes uncertainty regarding the viability of these imports based on prior research. Optimistically, they anticipate surpluses from neighboring powerhouses like France and Germany; however, they caution, “The remaining question is whether these surpluses will be allocated for hydrogen production for local industries or made available for export.”
Concerns over these imports have escalated in light of events last week when an extended period of low wind and heavy cloud cover significantly impaired Germany’s solar and wind output. Faced with a sudden need for massive imports, Germany’s energy prices soared beyond 800 euros per MWh on the spot market. In such scenarios, it raises crucial questions about Czech dependency and whether domestic coal reserves might play a role, especially when their own “Dunkelflaute” directly demanded trade with Czech coal sources. “Notably, Czech lignite resources demonstrated their highest performance since the crisis year of 2022 last week,” remarked Sáričková Benešová.
Conversely, during favorable conditions for renewable generation, Germany benefits from exporting low-cost green energy to the Czech Republic, further threatening coal viability. “While our power plants remain among the most cost-effective in the Czech Republic, the setting of the European market is inadvertently pushing them into greater financial losses,” assessed a spokesperson for Sev.en.
The ČEPS report confidently asserts that transitioning away from coal is feasible only if Germany can sustain sufficient electrical supply for export and if the Czech Republic manages to establish three thousand MW of gas-powered generation in heating plants by 2030. However, ČEPS warns that additional capacity between 1600 to 1900 MW must be incorporated to secure energy demands from 2030 to 2035. Unfortunately, the initial premise crucial to these plans—transforming the heating industry—continues to face significant challenges even though energy companies have developed actionable projects.
The ČEZ and EPH groups are collectively advancing the establishment of 11 gas-powered generator blocks, targeting a total output of 1,300 MW across Mělník, Trmice, Opatovice, Komořany, and Pilsen. Currently, they are awaiting approval for public funding—both for initial and ongoing operational support. These new installations will be integral during winter months, yet in summer, as solar energy rises, they risk being increasingly marginalized in the electricity market. Therefore, merely selling energy may not suffice to attract investment; supportive mechanisms will be vital.
The funding landscape is promising, with 100 billion crowns earmarked within the Modernization Fund for investment subsidies directed at the heating sector. Notably, the first projects have already received the green light. The Ministry of Industry has constructed a framework for cogeneration investors to vie for operational subsidies through planned auction waves. In total, this initiative is designed to provide substantial support for the anticipated 3000 MW capacity. “The heating industry stands to be a pivotal aspect in facilitating the transition from coal,” confirmed Jiří Feist, the strategic leader overseeing the power plant segment of Daniel Křetínský’s EPH holding.
However, implementation has encountered roadblocks. The Ministry of Industry announced its first auction for cogeneration, amounting to 1,280 MW, during the summer. Yet, the antimonopoly office commenced inquiries in September, and the outcome remains pending. Notably, the ÚOHS has not yet initiated administrative actions, meaning approved projects could be stalled for extended periods.
Feist remarked that under optimal conditions, the construction of the new gas plant could materialize within a three-year timeframe. However, due to the lack of subsidies, investors are unable to finalize contracts for turbine purchases. This stall could result in forfeiting pre-arranged delivery agreements, further delaying project timelines. Compounding the issue, funding from both the Modernization Fund and the Ministry’s programs must be utilized by 2030.
Amidst this backdrop, the gradual decline of coal continues unabated, evidenced not only by diminishing profitability at power plants but also by the waning demand for coal. Notably, the Tykač Group’s two quarries are facing closure this year. Sokolovská uhelná, which reported significant earnings of 885 million crowns last year, is now bracing for an anticipated loss of around one billion due to declining mining operations. Similarly, the ČEZ Group announced its quarterly results, revealing reductions in coal production. “In the first three quarters, Severočeské doly’s coal output decreased by 12 percent, while the EBITDA operating profit of the mining division dwindled by 28 percent,” Kříž explained.
Adding to this scenario, a recent analysis from consulting firm Invicta Bohemica, commissioned by President Petr Pavel, scrutinized the ramifications of reduced coal demand on the viability of domestic quarries. Utilizing data from all 22 domestic heating plants and competitive energy firms, they forecasted overall consumption trends. The findings culminated in a sobering caution.
Should all six major power plants conclude operations by 2030, domestic coal mines could close even before heating stations have fully transitioned away from coal dependency. “It is noteworthy that certain heating plants and particularly competitive energy firms have no plans whatsoever to abandon coal,” asserted Jan Vondráš, head of Invicta Bohemica.
Illustrating further, Invicta Bohemica’s research insists that coal mining in the Czech Republic remains sustainable as long as yearly coal sales stay above 15.5 million tons. “Even in the absence of electricity exports, production can continue until 2029. However, should the six condensing power plants cease operations, it would drastically diminish coal demand, rendering mining unfeasible across domestic quarries,” Vondráš noted. This scenario would also jeopardize coal supplies crucial for keeping the heating stations operational.
As the trajectory of coal decline appears to align with ČEPS’s progressive scenario, uncertainties persist about the feasibility of two foundational premises: ensuring viable electricity imports from Germany and realizing the anticipated 3,000 megawatts of gas-powered capacity. Failure to address these conditions would elevate the risk to Czech energy security to an intolerable level.
The Ministry of Industry, tasked with maintaining energy security, is exploring possible subsidy options for loss-stricken coal sources in light of a potential rapid decline. “One actionable response involves enshrining capacity mechanisms or decarbonization strategies into Czech legislation. Such measures could be activated if ČEPS analyzes indicate a risk of an electricity shortfall, even while considering imports,” remarked Deputy René Neděla. He emphasized that these measures could expedite the transition of heating plants to gas alternatives.
According to Neděla, transforming the heating industry, which continues to derive half of Czech heating from coal, is critical for the future viability of the country’s energy landscape. The Ministry of Industry also regards advancing legislation for expedited permitting and construction of new gas-powered sources, alongside bolstering green energy initiatives and enhancing grid resilience, as paramount. Nonetheless, these strategies do not adequately mitigate the challenges posed by uncontrolled coal mine closures, delays in gas pipeline developments, and the persistent uncertainty surrounding electricity imports from Germany.
The prospect of parliamentary action to enable subsidies for coal-fired power plants remains feasible. A proposal aimed at this end was recently withdrawn by its proposer, Berenika Peštová (ANO), indicating its suboptimal nature. Members within ANO acknowledged, “Maintaining coal as a necessary reserve is crucial. We cannot allow the market to dictate terms and must establish a regulation allowing coal operations when required. The potential risk cannot be ignored,” said Karel Havlíček, ANO’s vice-chairman and former Minister of Industry.
Ivan Adamec, chair of the Chamber’s Economic Committee from the ruling ODS party, concurred, stating that there’s a possibility of enabling support for coal resources to serve as a contingency measure in critical situations. “Currently, discussions are ongoing as various avenues are being explored. Nonetheless, this matter demands attention; we cannot afford to recklessly initiate closure of our essential lignite plants without adequate replacements in place,” he expressed.
Discussions are underway, with opposition negotiating with the Ministry of Industry regarding a potential auction-based support model for coal. “We can confirm a meeting with opposition representatives, during which we also addressed the issue of phasing out coal use in power plants, leading to a mutual agreement to gather again for further talks,” stated Neděla.
As the race for subsidies within the coal sector heats up, companies such as ČEZ, Sev.en Energy, and Sokolovská uhelná are actively vying for financial support amid the industry’s impending transition.
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What are the key challenges faced by the Czech Republic in its energy transition from coal?
The government but may be revisited if the situation deteriorates further. Experts suggest that any subsidies for struggling coal operations must be aligned with a clear and credible path towards decarbonization and energy transition.
the Czech Republic faces a complex energy transition, balancing the need for reliable power supply with the imperative of reducing coal dependency. The scenarios presented highlight the critical importance of both ramping up renewable energy sources and investing in gas-powered generation. However, the overarching risks associated with energy imports, the timeline for needed infrastructure changes, and the ongoing dependence on coal complicate this transition.
The success of these energy goals hinges on collaboration among government entities, energy producers, and stakeholders in the heating sector, underscoring the necessity of coordinated efforts to ensure a sustainable, reliable energy future for the country while navigating the inevitable decline of coal as a primary energy source. The coming years will require strategic actions to safeguard energy security and enable a transition towards cleaner and more resilient energy systems.
