Czech electricity generation industry 2030 targets.

Author: Vlastimil Vilímek | Prague on 19.02.2024

The government has approved a plan showing how the Czech economy should reduce emissions and meet European climate and energy targets by 2030.

A major part of this plan is to reduce energy consumption in our economy.

The Minister of Industry and Trade, Jozef Síkela, says the plan envisages the development of the energy sector up to 2030, when electricity consumption is expected to increase by around 10% compared to today.

At the same time, overall energy consumption is expected to fall and coal-fired power generation to decrease.

These changes should be offset by an increase in electricity generation from renewable sources and an end to the export of electricity from lignite, which will become too expensive due to the price of emission allowances.

Electricity consumption is expected to increase due to the development of electromobility and the electrification of industry or heating.

The Environment Minister, Petr Hladik, added that the plan shows the way to reduce emissions in the Czech economy, with an emphasis on the use of renewable sources and further energy savings.

It is important that these steps are accelerated. While there are already programmes in place to promote energy savings and the installation of renewable energy sources, there is a need to focus more on quality renovation of buildings and expanding the use of renewable sources for electricity and heat generation.

The Czech Republic aims to achieve zero emissions by 2050.

The plan is based on a scenario agreed by experts and politicians to meet European emission reduction commitments and targets in the energy, construction, transport and industry sectors.

This scenario will be further discussed in the preparation of the national energy strategy and climate protection policy, taking into account the European Commission’s comments and public consultations.

The planning process used models to forecast economic impacts such as the effect on GDP and employment.

The modelling takes into account the need to ensure a stable energy supply and compliance with EU rules.

As we use more electricity and less other fuels, we will need to import some electricity from abroad.

Minister Sikel assures that replacing coal, oil and gas with electricity from European countries will increase our energy security and should not increase the price of electricity for consumers.

A study on the difference in prices between imported electricity and electricity produced in the Czech Republic has been carried out with the help of electricity grid experts.

The main objective was to find out whether it is cheaper to import electricity or to produce it at home.

In Europe, the electricity market works in such a way that prices fall due to competition and depend mainly on how many people want electricity and how much the most expensive electricity is offered for.

The Czech Republic has decided not to adopt any new rules beyond the already approved European rules, taking into account existing targets and plans, including the construction of a new nuclear power plant at Dukovany.

The plans do not envisage importing hydrogen, because without further support, little progress is expected in this direction.

There are also no plans to stop using coal altogether or to make new cars emission-free by 2035.

As regards reducing energy consumption in buildings, this is guided by the 2020 plan.

The prices for air pollution are set according to the recommendations of the European Commission.

Another scenario assumes that European laws will be complied with, leading to the development of new energy sources and the state will support the construction of new, mainly renewable energy sources.

Old coal-fired power plants are expected to be replaced by new sources, including nuclear power and renewables, and more power will be generated from natural gas.

Energy storage, including hydrogen, is also expected to be important in the future.

Minister Hladik said that the future of the Czech energy sector lies in renewables and nuclear energy, and more investment is needed in solar and wind power plants.

The goal is to have 30% of energy from renewable sources by 2030.

It is estimated that around CZK 500 billion will need to be invested in the modernisation of the energy sector by 2030, and another CZK 350 billion in industry, with the main source of funding being the Modernisation Fund, which is fed by money raised from the right to pollute.

Various ministries, industry partners, associations, NGOs and representatives of cities and regions were involved in the preparation.

It also included a detailed analysis of the economic and energy impacts of the project led by Charles University.

Thank you for taking the time to read the article.

Vlastimil Vilímek

Our primary goal is to constantly increase energy savings in the industrial supply sector.

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