Weekend Read: Imminent return, impending problem

Weekend Read: Imminent return, impending problem

2 minutes, 58 seconds Read

From pv publication 01/23

Arguably the most politicized and stigmatized energy source in Czechia, solar looks set for a long-awaited return. The country’s initially wave of PV development came in 2019 on the back of a generous feed-in tariff (FIT). Almost overnight, Czechia endedupbeing Europe’s third-biggest solar market, with some 2 GW of generation capability. However, development was nipped in the bud by retroactive interventions which deteriorated the solar organization design, consistingof a 26% solar tax presented, the federalgovernment stated, to harness retail power rate inflation.

“In 2010, the federalgovernment mishandled the green energy policies,” states previous minister of environment Martin Bursik, who developed the Czech green financialinvestment aid plan. “The coal and nuclear markets, and some politicalleaders, haveactually utilized this for a huge offending versus renewables. Consequently, we have just a 14.5% sustainable energy share in our electricalenergy mix today.”

That is partially because energy scale PV tasks were prohibited for years and leftout from big scale renewables auctions. “With existing energy costs, even if the federalgovernment introduced solar auctions there would be no interest from financiers,” states Jan Krcmar, chairman of the Czech Solar Association (CSA). The CSA’s information shows just 158 MW of solar was included over a five-year duration from 2017 – with a meager 5 MW setup in that year for the whole nation.

The International Renewable Energy Agency approximates the 2.1 GW of solar in Czechia at the end of 2020 was 13 MW less than it had a year earlier, making it one of just 2 European countries with a diminishing PV fleet. Former minister Bursik, now chairman of the Czech Renewable Energy Chamber, states “there hasactually been a sort of psychological barrier that there is not enough solar and wind in the Czech Republic to cover our electricalenergy requires and to decarbonize. That is, all upuntil now.”

Multiple aspects

Two elements are driving the Czech solar healing: high energy rates and robust aids. Czechia last year authorized CZK 14 billion ($613 million) in solar financing throughout secret assistance programs. The New Green Savings Program developed in 2015 offers capital aids for property roof PV. Cash for business and commercial (C&I) ranges is offered from the Recovery and Resilience Fund introduced in March 2022, and equipped up numerous times giventhat, with ?%AIRCONDITIONING300 million ($318 million) readilyavailable at present.

One regional engineering, procurement, and building services business states C&I refunds deal a three-year return on financialinvestment so “the concern develops if the cash would be muchbetter utilized inotherplaces, giventhat solar is not actually a high-risk financialinvestment.” Lengthy hold-ups in processing the 4,000 or so C&I aid applications lodged to mid-October can be a deterrent.

“I wouldn’t state the refunds are too generous,” states Radek Orsag, CEO of regional circulation business SolSol and a member of the presidency of the Accumulation and Photovoltaics Guild. “We are presently getting up to 35% capex [capital expenditure] aid for solar setups and up to a 50% refund for storage systems. However, this can appearance generous under the optics of today’s energy rates.”

Demand for battery storage is high, driven by an aged grid network. “The Czech low voltage grid is still running on an uneven rate and has stage metering setup at houses, which suggests each of the stages is determined separately, and that makes it really challenging to make any excellent economics on self-consumption without the battery,” Orsag states.

“Therefore, 95% of roof solar setup in the Czech Republic comes with a battery. We’re talking about some 50,000 batteries in 2022, each at least 10 kW, so this is some 500 MW of storage capability just in the domestic sector. There’s likewise a mix of aids for heat

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