Climate change and local action
19. – 22. 9., Bratislava, Slovakia
Lessons learned on promotion
of solar energy use
in Czech Republic
Martin Karas
referent - specialist
Development of photovoltaic in
Czech Republic
•
very quick progress of FV in Czech Republic, Germany,
Spain, Greece, Italy, France, USA, Japan
•
State Environemental fund of the Czech Republic granted
from 2000 to 2004 – 600 FV projects (90 % cofinancing)
„Sun to schools“
•
2004 – Ministry of Industry and Trade and Ministry of
Environment – government bill of subsidy of renewable
energy sources
•
Parliament discussed mainly the issue of wind energy,
photovoltaic was not the main topic
Development of photovoltaic in
Czech Republic
•
2005 – parliament accepted and passed the law for subsidy
(promotion) of renewable energy sources
decrease of feed-in-tariffs was restricted at 5 %
(similar value in Germany)
•
2006 - Energy Regulatory Office declare the feed-in-tariffs for
PV at price 0,47 € / kWh (CZK/EUR - 28,40) without
differencing to any power output and location of the systems
purchase time of energy from FV was set for 15 years
(other RES 20 years, small water plant 30 years)
Development of photovoltaic in
Czech Republic
•
the feed-in-tarrifs increase lead to „solar boom“
•
2007 – were put into operation
first 4 photovoltaic power plants
each with installed capacity
at least 0,5 MWp
(largest PV plants in Central
and Eastern Eurupe at the time)
•
Ministry of Industry and Trade
predicted that total power
capacity of photovoltaics
will be 10 MWp in 2010
Development of photovoltaic in
Czech Republic
The main reasons for such huge development in this sector:
•
very high feed-in-tariff (0,47 € / kWh (CZK/EUR - 28,40))
with possible increase 2 – 4 % per year due to inflation
•
guarantee of the prices for 15 (later 20) years
•
duty of energetic companies to buy-out energy from
renewable energy sources
•
producer´s guarantees of lifetime period of the PV panels
up to 30 years
•
time of the economic return on investments 7 years or less
Source: www.solarplaza.com
Development of photovoltaic in
Czech Republic
•
2008 – german´s law for promotion of renewable energy
sources was amended (decrease of feed-in-tariff from PV
depends on installed capacity in last year)
in the years 2009 – 2011 the purchase prices in Germany
fall down about 8 – 11 % per year
•
czech legislation did not reflect this change at all
Energy Regulatory Office divided PV plants to 2 categories
(to 30 kWp, over 30 kWp), but the buy-out prices differ
among them by less than 1 %.
•
in other european countries, the feed-in-tariffs are
significantly variant at least from 2004
(the feed-in-tariffs for small PV systems on the buildings are
about half higher than for large plants on the ground)
Development of photovoltaic in
Czech Republic
•
2009 – rapid reduction of cost of PV panels caused by:
•
restrictions of the market in Spain
•
price pressure from chinese producers
•
massive increase in production of solar sillicon
•
such increase in production was expected a year later
•
in 2009 price drop of the panels in the CZ was overshadowed
by weakening of the currency
Development of photovoltaic in
Czech Republic
•
24. 8. 2009 – Ministry of Industry and Trade announced
amendment draft of the law for subsidy (promotion)
of renewable energy sources
Energy Regulatory Office – faster reduction of prices for
electricity from PV plants
•
16. 11. 2009 - the government approved a draft amendment,
force of the amendment, however, was set in conflict with
previous government statements from 1. 1. 2011
(originally from 1. 1. 2010)
Development of photovoltaic in
Czech Republic
•
21. 4. 2010 – senate accepted and passed the amendement
about new subsidy (promotion) of renewable energy sources
(the amendment allows the Energy Regulatory Office lower
purchase prices of electricity for that category of renewable
sources, where the return on investement has fallen below
11 years)
•
Energy Regulatory Office set for the following year new
purchase prices in order to maintain the economic return on
15 years.
•
impact has no effect on the installed capacity in 2010,
because the amendment entered into force 1. 1. 2011
Development of purchase prices for
PV in Czech Republic
Source: www.cz-rea.cz
Feed-in-tariff´s prices and
gurantees in CZ (2010)
(CZK / EUR 25,5)
*) As regards biogas and biomass, the level of support differs according to the type of fuel
Source: www.eru.cz
Source: www.csve.cz
Development of photovoltaic in
Czech Republic
•
2010 - the purchase prices for producing electricity by using
solar radiation in the CZ were still the highest in the EU
•
2010 - the cost of PV systems in the CZ fell down by half due
to strengthening currency and falling component´s prices
(compared with 2006)
•
big players came from Germany, Spain, Great Britain,
Netherlands and China.
•
reality surpassed all expectations
the Energy Regulatory Office announced the final value of the
installed capacity at the end of 2009 to 463 MWp
(plan of Ministry of Industry and Trade for 2010 was
originally expected 10 MWp, increased to 185 MWp)
Installed PV capacity in Czech
Republic
Source: www.cz-rea.cz
Installed capacity of renewable
energy sources in Czech Republic
MW
Photovoltaic
Water
Wind
Biogas
Source: www.cz-rea.cz
Cumulative installed PV power in the
EU new member states (2010)
Source: www.pv-nms.net
Source: www.pv-nms.net
Source: www.engineerlive.com
Source: www.engineerlive.com
Share of electricity production from
RES in CZ
Source: www.eru.cz
Development of photovoltaic in
Czech Republic
•
For back-up of the electricity supply from PV and Wind power
plants is necessary to operate other stand-by power supplies
•
The maximum acceptable
installed capacity of PV and
wind power plants is in the CZ
only around 2 000 MW
•
this amount was achieved
in late 2010
•
for higher installed capacity
was no possible to ensure
safety and reliability of the grid
Development of photovoltaic in
Czech Republic
•
3. 2. 2010 - system operator of the grid (ČEPS) asked the
energy distribution companies (ČEZ, E.ON, PRE) to stop
giving permission to grid connection requests for new PV and
wind plants
•
the distribution companies immediatelly comply the proposal
•
but a lot of PV capacity was reserved previously
•
Czech system operator of the transmission grid also propose
to sustain the construction of new CCGT (combined cycle gas
turbine) plants and other sources which are able to deliver to
the grid its full power operating maximum in a few minutes
(biogas stations)
Development of photovoltaic in
Czech Republic
•
CZ has committed the climate-energy package to increase
the proportion of energy from renewable energy sources in
gross final energy consumption. (for CZ 13 % in 2020)
•
This goal should be, according to National Renewable Energy
Action Plan (NREAP), newly filled with the support of energy
sources that contribute to meeting this target with the lowest
possible influence (cost) for consumers.
•
25. 8. 2010 – government approved NREAP
(for all categories of renewable energy sources is scheduled
the development to year 2020 so as to meet EU target)
•
for PV, the total planned installed capacity in 2020 was
already filled in 2011 (end of 2010)
Estimation of total contribution (installed capacity,
gross electricity generation) expected from PV
in the Czech Republic (NREAP)
Source: www.mpo.cz
Development of photovoltaic in
Czech Republic
•
due to enormous increase in the number of PV installations
companies and households (final consumers) were
threatened by raise of the prices of electricity
•
12. 11. 2010 - senate approved an amendment to the
Income Tax law
the amendment cancel the possibility of immunity of taxation
•
14. 11. 2010 – parliament approved another amendment of
the law for subsidy (promotion) of renewable energy sources
Development of photovoltaic in
Czech Republic
For financing purchase prices amendment introduces:
•
3 years extraordinary taxation of photovoltaic power plants
installed in 2009 and 2010 at a rate 26 % for purchase price
(due to introduction of this retroactive tax, CZ is threatened
by wave of arbitrations);
(investors many plants moved to abroad - SK)
•
gift tax from the price of emission allowances, which will
electricity producers receive for free in 2011 and 2012
•
four times increase of the fees for removal of piece of land
from agricultural ground
Development of photovoltaic in
Czech Republic
Main mistakes of development of PV in CZ:
•
unresponsive to the development and legislation changes in
neighbouring countries (Germany)
•
insufficient possibility of regulation of purchase prices (feedin-tariffs)
•
similarity of purchase prices for all PV installations regardless
of location and installed capacity
•
the possibility of almost free booking of capacity in the
transmission grid for connecting the PV installations
Development of photovoltaic in
Czech Republic
Main mistakes of development of PV in CZ:
•
mistaken prediction of growth of installed capacity
•
delayed reaction on the situation
•
since the begining of renewable energy sources development
missed the support of energy sources that contribute to
meeting the EU target with the lowest possible influence
(cost) for consumers
•
total cost of the purchase prices for owners of PV power
plants (2000 MWp – 20 years) -> 30 000 000 000 €
(CZK/EUR - 24,50)
Electricity production from
RES in CZ in 2010
Biogas
Landfill gas
Water power
Biomass
Photovoltaic power
Source: www.eru.cz
Wind power
Total costs of promotion of RES in
Czech Republic – 2010 (billion CZK)
Water
PV
Wind
Biogas
Biom.
Source: www.mpo.cz
Development of photovoltaic in
Czech Republic
Preparation of new law for promotion of energy sources:
•
2001/77/ES and 2003/30/ES -> 2009/28/ES
•
RES support only up to limits (settings) planned by NREAP
•
preferred sources with lower specific cost €/MWh
(small water power plants, biomass, biogas reactors)
•
maximum purchase price from any RES - 250 € / MWh
•
PV systems only on buildings and only to 30 kWp
•
Amendement of waste law – salvage, treatment, disposal,
financial responsibility of wastes from PV systems / plants