Supports electricity production from high-efficiency combined heat and power (CHP) plants

On 27 May 2024, the European Commission approved a €3.2 billion State aid scheme of Czechia to promote electricity production from high-efficiency combined heat and power (CHP) plants. It provides feed-in premiums for electricity generated by eligible CHP plants, excluding those powered by solid fossil fuels, diesel, and oil. Bonuses for installations above 1 MW are set via tenders, while those up to 1 MW (green bonuses) are determined annually by the Energy Regulatory Office. The first call for bids for 2024 is announced on 2 July 2024. Administered by the State-owned market operator OTE under Decree No. 79/2022 Coll. and Act No. 165/2012 Coll., the initiative aligns with the European Green Deal, aiming to reduce greenhouse gas emissions, support energy efficiency, and accelerate the transition from coal to cleaner energy sources. The scheme runs until 31 December 2025.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific (SDG)
  • Services (Electricity, gas, steam and air conditioning supply)

• Sources:

  • Ministry of Industry and Trade, Announcement of an auction for operating support for electricity from high-efficiency combined heat and power production – 1st call in 2024 – deadline extension, https://www.mpo.gov.cz/cz/energetika/vyhlaseni-aukce-na-provozni-podporu-elektriny-z-vysokoucinne-kombinovane-vyroby-elektriny-a-tepla-_-1--vyzva-v-roce-2024--281931/, 20 Sep 2024
  • European Commission ec.europa.eu, Commission approves €3.2 billion Czech State aid scheme to support high-efficiency combined heat and power generation, https://ec.europa.eu/commission/presscorner/detail/en/ip_24_2849, 27 May 2024