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State aid for cogeneration

6. 6. 2024

Newsletter

bpv BRAUN PARTNERS

On May 27, 2024 the European Commission approved the Czech state aid scheme worth 3.2 billion euros (75 billion Czech crowns) focused on supporting electricity production in high efficiency facilities for the combined production of heat and power. This programme, valid until December 31, 2025, focuses on new and modernized facilities for combined heat and power generation (cogeneration) in the Czech Republic. Key aspects of the programme:•Budget 3.2 billion euros (75 billion Czech crowns)•Recipients: Operators of new or modernized high efficiency cogeneration facilities with the exception of those using solid fossil fuels, diesel fuel or oil. •Aid: Feed-in premium (bonus) for every MWh of power generated, provided for a period of 15 years. The amount of the bonus is set based on tenders with the exception of small facilities (up to MWe), in which the amount is set as an administrative measure.Aid will go to projects that permit electricity generation from high efficiency cogeneration facilities. However, facilities receiving aid will either have to close projects that use natural gas or switch to gases from renewable resources and low-carbon gases by 2050 in order to prevent dependency on natural gas.For more on the European Commission’s approval of the state aid scheme, please see: https://ec.europa.eu/commission/presscorner/detail/cs/ip_24_2849

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