Biomass Action Plan for the CR for 2009-2011
BIOMASS ACTION PLAN
OF THE CZECH REPUBLIC FOR
2009-2011
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Biomass Action Plan for the CR for 2009-2011
1. INTRODUCTION
In general, biomass is usually defined as all matter of organic origin. It comprises a wide
range of types, namely dendromass (wood biomass), phytomass (plant biomass, agricultural
and energy crops) and biomass of animal origin. Thus, biodegradable waste (pure or sorted
from other components) also serves as one of the sources of biomass.
With respect to the rising demands for the utilisation of biomass in energy, in transport as part
of fuels and in industry as a renewable raw material it is worthwhile to consider the potential,
possibilities and modes of efficient utilisation of biomass in the future. The prepared national
Biomass Action Plan (AP) draws not only on recommendations laid down in the EU Biomass
Action Plan1, but also takes into account the need to evaluate the possibilities of utilising
the limited biomass potential for the needs of the CR in the years to come and to set
fundamental rules and means for its efficient utilisation without prejudice to free market rules
or the operation of competing options of utilising biomass, whilst taking the existing and
expected non-market interventions on board.
The Action Plan debates primarily energy utilisation of biomass, but also takes into
consideration other modes of biomass utilisation, i.e. the potential of energy utilisation of
biomass is determined only upon evaluation of the existing utilisation of biomass and its
trends. The possibilities of energy utilisation of biomass in the future that have been laid
down are viable, respect that all sectors that are fully or partly dependent on biomass sources
will be retained and developed, and are in line with the principles of sustainable development
and good farming practice. In general, it may be said that the main criteria should be based on
the amount of added value in the process of biomass appreciation and life cycle appreciation,
i.e. including the return of nutrients into the soil.
The Action Plan is not a strategic document, but aims at setting the direction and amending
the existing measures so that access to the utilisation of biomass would become more efficient
and so that in absolute terms its utilisation would increase, which should be aided by
implementing the measures proposed as part of the AP.
The underlying motivation for proposing activities as part of the implementation of
the Biomass Action Plan is the fact that renewable energy sources (RES) have not seen real
development as yet and that sustainable utilisation of biomass for the generation of electricity
and heat from RES has not grown at a desirable and required pace, whereas the need for
energy has been on the rise together with the will to invest into renewable energy sources and
into sustainable agricultural activities and energy systems. This fact is apparent mainly in
the field of energy utilisation of biomass and biogas, which also contains the biggest and
relatively quickly mobilisable potential of stable energy supplies from RES.
A frequently raised objection is that optimal environment has already been set for
the utilisation of renewable energy sources and that RES do not need any support from
Structural Funds since they are already sufficiently supported on the basis of Act No.
180/2005 Coll. and subsequently by guaranteed purchase prices or alternatively by green
bonuses. However, this does not reflect the reality at all. A proof of this is that we see
stagnating electricity generation from RES as well as only a very small rise in building new
energy sources. However, to invest into costly technologies with a high uncertainty of fuel
costs simply does not pay given the current situation.
The proposed measures as part of implementing the AP should make the approaches towards
utilising biomass more efficient and enhance its utilisation in absolute terms. If the current
conditions stay the same and the proposed measures are not implemented, stagnation of
1
COM(2005)628
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Biomass Action Plan for the CR for 2009-2011
the utilisation of biomass for energy purposes is likely to occur. Under the existing conditions
only a small part of the potential will be utilised and the risk of failure to comply with
a commitment towards the EU will rise even further. However, from both the macroeconomic
and security perspective it is not so important to meet the percentage commitment enshrined
in the Treaty of Accession, but to safeguard at least minimum energy independence and
security and to strengthen regional economies, whilst minimising payments for the import of
energy raw materials. The above are crystal-clear arguments even if we disregard regular calls
by the European Commission, whereby it uses every opportunity to convince us of
the desirability of fulfilling the target in the field of renewable sources and of increasing
support for them. Statistical data collected by the Ministry of Industry and Trade (MoIT CR)
show that given the current state of affairs the target for 2010 will presumably not be met,
mainly due to insufficient utilisation of biomass for energy purposes. It is expected that only
6% of electricity will be generated from RES; provided there is a rise in the utilisation of
biomass, the 8% target may be met.
The implementation of measures contained in the AP will lead to a systematic and efficient
development of biomass, to the removal of barriers (administrative, legislative, etc.) and in
general to an improvement of the environment for the utilisation of biomass. It remains to
devise the terms and conditions for electricity generation from RES in the minimum amount
of 2.3 TWh by 2010, since a further increase in gross domestic electricity consumption is
expected to arise; besides, the fluctuation of electricity generation from hydropower plants
also has to be born in mind. A larger portion of the above volume will have to be generated by
sources utilising biomass or biogas, namely approx. 70%, i.e. approx. 1.6 TWh. According to
an outlook for biogas utilisation, additional electricity generation from biogas (provided
the purchase price is increased and investment subsidies stay the same) may range around
400 GWh. In order to meet the above commitment, around 1.2 TWh should be generated from
energy biomass. This amount reflects (an additional) installed output of electric power plants
or combined heat and power plants (that generate electricity all year long) using biomass and
having the size of approx. 180-200 MWel. This may only be achieved by the construction of
new sources or by renovating the existing combined heat and power sources.
A joint target should therefore be an attempt to achieve a maximum energy effect of biomass
utilisation, optimise costs for obtaining this energy and identify current barriers that hinder
the development of this sector. At the same time we have to bear in mind the specific features
of biomass as an energy source utilisable mainly locally, whose optimum distance is around
50 km. This consideration naturally has implications for the economy and mutual relations on
the biomass market. It is the local market with the individual types of biomass and not
the global market that determines sustainable utilisation of energy biomass.
The proposed activities draw on a two-year long cooperation of stakeholders and expert
bodies on the preparation on the Biomass Action Plan as well as on several comment
procedures and public consultations. The activities respond both directly and indirectly to
the current state of affairs and barriers and propose improvements with a single joint target,
that is to enhance and strengthen the utilisation of RES, namely of biomass in the CR, and
they also marginally concern other fields such as organic farming, recycling of nutrients, food
and animal products and other relevant topics related to the utilisation of biomass and
agricultural activities in general.
A comprehensive overview of the existing support and subsidy titles related to energy
utilisation of biomass is given in an Annex to the AP.
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Biomass Action Plan for the CR for 2009-2011
2. TARGETS OF THE ACTION PLAN
The main targets of the Action Plan are based on a suitable combination of needs and
requirements for biomass utilisation in the CR and commitments towards the European
Union. They also draw on the experience, specific features and trends of biomass utilisation in
the CR. The targets may be summarised as follows:
1. Help to fulfil commitments of the CR in the field of energy generation from RES by 2010
and by 2020 that follow from the Treaty of Accession to the EU, the State Energy Policy
and agreement on a future energy direction of the EU (March 2007), whilst respecting
the principles of sustainable development;
2. Help to start up investment into a clean mode of obtaining energy, whilst minimising
energy intensity together with:
a. better mobilisation and efficient absorption of Structural Funds as well as other
funds (the existing support for energy efficiency and RES has not been set in
an optimal way), from the European Agricultural Fund for Rural Development
(EAFRD) and other national and international sources;
b. removal of administrative barriers for the utilisation of biomass for
the generation of solid biogas and heat;
c. optimisation of systems for the provision of support and better utilisation of
the potential of biomass;
3. Support rural areas as the main suppliers of energy from biomass (related to this is
retraining of farmers, equipment for biomass producers, investment into equipment for
biofuel generation and electricity and heat suppliers switching to biomass), help to start up
the process of synergistic rural development and efficient agricultural activities, mainly by
activating projects generating long-term regional income;
4. Increase direct and secondary employment in particular in rural areas;
5. Contribute to a higher involvement of entities in the field and to higher efficiency as part
of research and development programmes;
6. Apply the principle of sustainable development and further promote environmental
aspects with regard to targeted growth of biomass, whilst taking into account
the environmental limits of obtaining biomass;
7. Contribute to an even development of all available advanced technologies, i.e. all outputs,
for various target groups, etc.;
8. Increase the offer of energy biomass on the domestic market;
9. Come up with a comprehensive approach to awareness-raising, education and qualified
advisory services related to the growth and utilisation of biomass in the CR.
3. STARTING POINTS AND REASONS FOR THE PREPARATION OF THE ACTION PLAN
Among other things, the EU Biomass Action Plan adopted on 7/12/2005 under
COM(2005)628 served as a starting point for the preparation of the national Biomass Action
Plan.
Other starting points include for instance the following:
- EU Strategy for Biofuels – COM(2006)34;
- State Energy Policy of the CR from the year 2004;
- Renewable Energy Road Map – COM(2006)8482.
2
Renewable Energy Road Map. Renewable energies in the 21 st century: building a more sustainable
future, SEC(2006)1719, SEC(2006)1720, SEC(2007)12
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Biomass Action Plan for the CR for 2009-2011
The European Commission recommends the preparation of national action plans in
the interest of fulfilling national and also European targets concerning energy utilisation of
biomass, since the ongoing values of fulfilling the set targets have reached neither the targets
anticipated in the White Paper on Renewable Sources of Energy from the year 1995 nor
expectations that follow from the application of Directive EC/2001/77 on the promotion of
electricity produced from renewable energy sources in the internal electricity market. One of
the targets set forth in the European Action Plan is to double the share of energy from
biomass in 2010 compared with 2003.
Due to the fact that biomass currently forms approximately a half of renewable energy utilised
in the EU, the AP represents a major component with view to fulfilling the targets of utilising
RES and sets forth measures for enhancing the development of energy from biomass from
wood, waste and agricultural crops by means of devising market-oriented incentives aimed at
its utilisation and removal of barriers for market development.
Another reason for preparing the Biomass Action Plan is a systematic unification of opinions
for the future utilisation of the limited potential of biomass in the CR with regard to mutual
coordination of different strategies and plans in the individual sectors, notably in the sector of
liquid biofuels, energy utilisation of biomass by combustion as well as in other sectors where
biomass is utilised, whilst bearing in mind food safety and principles of sustainable
development.
The Action Plan has been prepared as a source material for short-term decision-making,
which also sets forth tasks that lead to finding a solution to fundamental problems in order to
allow for further development of biomass utilisation:
 In what direction should the CR proceed in biomass utilisation;
 How should the development of phytoenergy be devised as part of supplementary
programmes of the Ministry of Agriculture.
The Action Plan is not a strategic document, but a document aimed at short-term targets and
specific activities in the forthcoming three years. It has to be regarded as a dynamic document
that will be amended in the future following amendments to documents of a strategic nature
that are under preparation.
The preparation of the Action Plan has been supervised by a narrow working group with
representatives of the Ministry of Agriculture and the Ministry of the Environment; at
the same time a wider working group has been established where representatives of other
ministries and stakeholders are present.
When the Czech Republic signed the Treaty of Accession to the EU, which came into force
on 1 May 2004, it agreed to fulfil a national indicative target, namely to have an 8% share of
electricity generation from RES in gross electricity consumption in 2010. This target was
taken on board by the State Energy Policy of the Czech Republic approved in March 2004.
Evaluation of Progress Achieved by the Czech Republic in Meeting the Targets for 2010
according to SEC(2007)12 (in Per Cent)
Czech Republic
Reference
Year (1997
or 2000)
Achieved
Market Share
2004/2005
Standardised
Market Share
2004/2005
Target by
2010
3.8
4.8 (2005)
4.0 (2005)
8
Classification
Source: Communication COM(2006)849, final wording SEC(2007)12
A summary of specific targets of the EU that are relevant in relation to the Action Plan:
 12% of the total share of RES in primary energy sources (PES) in 2010;
 A 20% share of energy from renewable sources in end energy consumption in 2020
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Biomass Action Plan for the CR for 2009-2011



with a diversified share of individual Member States; (the Government of the CR will
be adopting the target of a 13% share of energy obtained from renewable sources in
end consumption, i.e. a share of 8.6% of RES in PES);
Indicative target of a 21% share of electricity generation from RES in gross electricity
consumption on the internal EU market in 2010; for the CR an 8% share of electricity
from RES in gross domestic consumption in 2010;
A 5.75% share of liquid biofuels in the total volume of fuels in 2010;
A 10% share of liquid biofuels in the total volume of fuels in 2020.
4. TYPES OF BIOMASS
This chapter classifies the individual types of biomass according to their most frequent
utilisation at present and evaluates the trends expected in the utilisation of their potential.
The basic division of biomass according to its main types and modes of utilisation laid down
in the AP draws on Schedule No. 1 to Regulation No. 482/2005 Coll., which makes provision
with respect to determining the types, modes of utilisation and parameters of biomass for
the promotion of electricity generation from biomass within the meaning of Regulation No.
5/2007 Coll. (see Schedule No. 2), simplified into 3 basic groups: agricultural biomass –
phytomass grown on agricultural land, forest biomass – dendromass, and residual biomass –
by-products from agricultural and processing industries.
AGRICULTURAL BIOMASS
Pursuant to Regulation No. 482/2005 Coll. (Groups 1 and 2), agricultural biomass comprises
the following:
Targeted growth of biomass;
Biomass from cereals, oil plants and fibre plants;
Permanent grass growth (PGG);
Fast-growing woody species (FWS) grown on agricultural land;
Plant residues from primary agricultural production and landscape conservation.
Benefits
 Landscape conservation, water retention in the landscape;
 Efficient management of agricultural waste and surplus;
 Environmentally-friendly;
 Reduced unemployment rate;
 Utilisation of traditional agricultural engineering.
Undoubtedly, agricultural biomass is the most complex component of the biomass potential in
the CR. The utilisation of phytomass grown on agricultural land meets conditions that follow
from the restructuring of our agriculture by substituting food commodities with alternative
technical or energy crops. Other effects of producing alternative crops include safeguarding
energy self-sufficiency of rural areas, enhancing the attractiveness of municipalities and
regional use of generated financial resources. However, the relatively demanding logistic
aspects related to the traditional agricultural production have to be tackled together with
the great amount and diversity of processing technologies.
The energy conversion may make use of a part of agricultural by-products (straw from oil
plants and cereals), of which there is a sufficient amount thanks to the decreasing number of
cattle, or of an unused part of hay formed as a result of maintenance of meadows and
pastures. It is also possible to produce crops grown on target that have energy utilisation and
that may include winter and spring crops grown for other than food purposes (cereals, corn,
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Biomass Action Plan for the CR for 2009-2011
oil crops and fibre plants) as well as FWS grown on agricultural land (willow, poplar, acacia).
With view to economic efficiency it is also suitable to pursue targeted growth of annual
energy crops (mustard, safflower, prince’s feather, hemp) or perennial crops (Jerusalem
artichoke, knotweed, sorrel) and energy grass (Miscanthus, reed, Phalaris, bent grass).
FOREST BIOMASS
Pursuant to Regulation No. 482/2005 Coll. (Group 3), forest biomass comprises the
following:
Firewood;
Residues from forest management.
Residual dendromass from forestry and the wood-processing industry may be utilised as fuel
(residual wood matter from wood logging, thinning, cleaning, cuttings and residues from
the wood-processing industry, fire wood). However, high handling and transport costs have to
be taken into consideration together with local availability of the source. The Czech Republic
has a forest biogas market, but it is by no means consolidated as yet.
Historically, Czech forests have been largely commercially utilised. The main principle has
been sustainable management and protection of nature and the environment. The current as
well as future aim of forest experts is to define the “safe” potential of energy forest biomass.
The existing calculations of the forest biomass potential draw on environmental and economic
grounds and are based solely on the principal logging rates and precondition of leaving 20%
of forest biomass in the logged area. Calculations of the forest biomass potential exclude
protection forests and some forests that fall within the production forest category where
vegetation grows in unsuitable and principally poor places (according to a set of forest types
(SFT)).
The utilisation of logging residues should focus primarily on production forests pursuant to
the Forest Act (No. 289/1995 Coll.). Under certain conditions some specially designated
forests that produce wood matter may also be utilised (i.e. some military forests, spa forests
and water management forests), but only provided that their primary function is safeguarded.
RESIDUAL BIOMASS
Pursuant to Regulation No. 482/2005 Coll. (Groups 4 and 5), residual biomass comprises
the by-products and residues from:
The paper industry;
The food industry;
The wood-processing industry;
The animal industry;
Other industries;
Biodegradable waste;
Slops from the distillery industry.
Residual biomass comprises a wide range of types of biomass that are formed secondarily
during the processing of primary sources of plant or animal biomass. The main volume of
residual biomass comes from the paper industry and cellulose industry, wood production,
processing of meat and other food processing industries as well as from the sorting of
communal waste. Residual biomass from animal agricultural production, i.e. excrements
produced by the bred animals, forms a separate item. Waste treatment sludge and sludge from
specific production may also be quoted separately, if classified as biomass.
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Biomass Action Plan for the CR for 2009-2011
Residual biomass from agricultural production and the processing industry forms a significant
part of the potential of energy biomass (mainly straw and residues from specific production).
Just like in any other industry, biomass utilisation also has its minor weaknesses. The increase
in biomass production requires an expansion of production areas or a rise in the intensity of
biomass production, which creates a need to increase investment into biomass production.
Under the existing conditions of obtaining energy from biomass the utilisation of traditional
energy sources is still competitive from the financial point of view, although with certain
difficulties (this fact may gradually change with the introduction of environmental
legislation). The utilisation of biomass sources from the global point of view also remains
a problem with view to the distribution of biomass sources and electrical appliances as well as
with respect to difficulties related to the accumulation, transport and distribution of
the obtained energy. The Biomass Action Plan will thus contribute to unifying opinions about
the biomass potential utilisation in the CR. It will do so with view to a mutual coordination of
various strategies and plans in the individual sectors where biomass is utilised, whilst taking
into account food safety and the principles of sustainable development.
MAIN POSSIBILITIES
TRENDS
OF
BIOMASS UTILISATION, CURRENT SITUATION
AND
EXPECTED
a) Direct combustion – heat or electric power;
b) Co-generation – electric power and heat;
c) Generation of biogas;
d) Generation of liquid biofuels;
e) Non-energy, i.e. material utilisation of biomass:
- Chemical and pharmaceutical industry;
- Construction industry;
- Wood-processing industry.
The utilisation of biomass as a material comprises all residual biomass and targeted growth of
biomass designated as a raw material for industrial production. It involves mainly the paper
industry and cellulose industry, production of building materials (brick-making industry,
production of structural slabs, etc.), chemical industry, pharmaceutical industry and new
industries that will replace part of their production of materials on the basis of crude oil with
production on the basis of biomass (e.g. “plastics” on the basis of vegetable starch).
Non-energy utilisation of biomass will be becoming ever more important, but at the same
time it will be largely dependent on market conditions, as subsidies or incentives are not
common in this industry area. Whereas currently it is mainly forest biomass or residual
biomass that is utilised, agricultural biomass will also begin to gain importance.
Within the time frame of the Action Plan it is vital to keep the continuity of the existing
industrial productions on the basis of biomass; this applies mainly to the paper industry and
the building materials industry. Besides, it is worthwhile to monitor the trends in biomass
utilisation with a higher added value and to support strategically important areas mainly
through supporting science and research projects with a focus on applied research and
involvement of higher education institutions, industrial companies and farmers.
As part of preparation of the AP, the energy potential of forest dendromass (primary energy;
calculated with a 15% water content) was determined (42.5 PJ) together with the potential of
agricultural biomass. The potential of agricultural biomass was laid down in two alternatives
with view to food safety: (a) for a maximum possible energy potential with view to food
safety (159.4 PJ), and (b) according to food safety data provided by the MoA CR (108.8 PJ).
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Biomass Action Plan for the CR for 2009-2011
5. ECONOMIC ASPECTS OF BIOMASS UTILISATION AND COST CURVES
With view to the broad range of issues discussed in the Action Plan all economic aspects of
the different modes of biomass utilisation cannot be captured in detail. The Action Plan
focuses mainly on residual biomass and targeted growth of biomass. In the above area it is
possible to monitor fairly clear economic dependencies, although the prices of biomass differ
greatly depending on its type and purpose of utilisation. To begin with, biomass may be
divided into two groups according to the mode of pricing and appraisal according to the costs
for (1) acquiring biomass, (2) removing biomass.
The first group involves all targeted growth of biomass and some types of residual biomass.
The second category includes mainly those types of biomass that arise as a by-product and
that for some reason or another pose certain problems. With the introduction of technologies,
notably energy utilisation, both categories have started getting closer to one another and both
modes of handling biomass (utilisation and removal) are starting to compete or are beginning
to complement one another and shifts take place with view to the technological processing
that is to follow. A couple of examples may be given to illustrate this:

The deposition of biodegradable waste (BDW) together with other waste at a landfill v.
utilisation of sorted BDW for compost production or in biogas stations. The appraisal of
the above biomass in this case may be based on costs for depositing BDW and on costs
for sorting BDW and its concentration in one place. When comparing both the above
modes of handling biomass (i.e. its utilisation and removal) other impacts also have to be
taken into account;

The removal of slaughter waste in rendering plants, where the price of removed biomass
essentially equals the removal fee plus logistic costs. An alternative here is sanitisation
and subsequent processing in a biogas station or processing of an intermediate product
from rendering plants in a biogas station. All impacts as well as sanitation requirements
have to be taken into consideration when making a calculation;

Straw (residual biomass) is a traditional by-product of agricultural production. Depending
on what the farmer prefers, this commodity may be appraised according to its nutritional
value (appraised as a fertiliser) or according to the demand price for utilisation as
a material (structural slabs) or for the purposes of energy utilisation (co-combustion, pure
combustion, production of pellets).
Prices of the individual types of biomass are thus formed on the basis of standard economic
pricing rules, but with view to the specific features of the biomass market. Demand-driven
price (customer-set price) is a prevalent pricing method, which leads to situations when
the price is even lower than the actual cost price. This distorts the biomass market and limits
its development potential. In this respect the situation is very similar in both “dry” and “wet”
biomass, i.e. biomass designated for combustion and biomass utilisable for biogas production,
respectively. In both cases it is worthwhile to express the price of biomass in relation to its
energy content.
6. OVERVIEW OF ACTIVITIES AND TOPICS FOR THE ACTION PLAN
When industries utilising biomass in the CR were mapped out, the most vital measures
necessary for improving the conditions for biomass utilisation were identified. The proposed
measures draw on the current state of affairs and estimated development in the forthcoming
three years. The proposed individual tasks and individual activities set forth in the AP are
based mainly on the need to change the existing administrative barriers and pave the way for
a desirable development of biomass utilisation in the time frame covered by the Action Plan.
The measures are essentially rooted in the existing strategic documents and current conditions
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Biomass Action Plan for the CR for 2009-2011
on the biomass market, in legislation, etc. Ideas and comments were added on an ongoing
basis during the whole consultation period when the draft Action Plan was debated.
The following table contains proposed activities whose implementation should contribute to
systematic and efficient biomass development. It also has to be taken into account that any
step having both a direct and indirect impact on the biomass market should be evaluated in
advance, preferably with the help of the cost-benefit analysis method (provided it involves
an intervention from the point of view of the public sector).
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Biomass Action Plan for the CR for 2009-2011
NO.
1
2
3
4
5
6
Table: Proposed Activities within the Implementation of the Action Plan
ACTIVITY
DESCRIPTION
Utilisation of PGG
Review the terms and conditions and possibly
production for energy
also subsequently amend the terms and
purposes.
conditions for the utilisation of grass matter from
PGG for energy purposes (e.g. pellets from hay,
grass matter for biogas production, etc.).
Protection against
Soil removed from the agricultural land stock due
the loss of quality
to construction (housing construction,
agricultural (arable) land construction of industrial zones, utilities) is often
quality arable land, which will be missing in
the future mainly with view to potential
production of energy raw materials.
Announcement of
a research programme in
the field of RES.
Support for new
procedures in energy
utilisation of biomass
Inclusion of solid
biofuels into the lower
VAT rate
Issue a national Soil Protection Act in relation to
the EC Soil Protection Directive that is under
preparation.
R&D topics from the MoE CR are missing
together with general energy and environmental
topics.
Support the introduction of innovations in the
field of energy utilisation of biomass regardless
of its form.
These include non-wood biofuels (agri-pellets,
agri-briquettes, biomass in general, etc.); it is a
logical completion of the first step when solid
biofuels on the basis of wood were included in
the lower rate (see the EU VAT Directive).
Urban planning, urban
management
The location of plants processing biomass has to
be in line with the urban planning documentation.
Education, consultancy
and promotion
This area lacks qualified consultancy and
education.
Supporting awareness-raising and education
programmes: RES in general do not have a
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PROPOSED SOLUTION
Amend the terms and conditions for the utilisation of PGG production
for the benefit of energy utilisation of biomass that would otherwise be
waste biomass. Revise the Rural Development Programme (RDP) and
amend the regime of subsidies for the benefit of grass utilisation for
energy purposes.
Timely implement the Soil Protection Directive (under preparation).
Prepare national legislation in advance, simultaneously with
the preparation of the European Directive and on the basis of ideas
contained in the Directive.
The legislation will help to immediately protect both soil quality
(content and cycling of nutrients, erosion, etc.) and the soil as such
against excessive loss for construction purposes. Soil serves as
an irreplaceable natural resource and its significance and value will rise
even further, which is apparent already now in debates related to food
safety and utilisation of soil for energy purposes.
As part of the planned reorganisation of research define individual
research programmes in the field of RES. Interlink research in the field
of environmental protection with research in energy and other fields
and allocate funds for the above research from the budget of the Czech
Technology Agency.
By amending measure I.1.1.2 in Axis I of the Rural Development
Programme enable the support of new procedures and innovations in
the field of energy utilisation of biomass in all its forms.
Efficiently exert influence on the EC with the aim of amending
the VAT Directive and making it possible for biomass to be reclassified and included in the lower VAT rate. Define the categories of
solid biofuels on the basis of agricultural biomass as part of customs
nomenclature for unambiguous classification and subsequent
amendment to the VAT Act to that effect.
Consider issuing a methodology for evaluating sustainable development
of a given area so as to assess the impact of buildings that utilise RES
on sustainable development of the area pursuant to the Act.
Introduce a system of awareness-raising, education and qualified
consultancy. Cooperate not only with the individual research centres,
companies and higher education institutions, but also with foreign
centres and on international projects.
RESPONSIBILITY
MoA CR
MoE CR, MoA CR,
MfRD CR
MoE CR
MoA CR
MoF CR, MoA CR,
MoE CR, MoIT CR;
all Ministries in the
course
of
negotiations with the
EC
MfRD CR
MoEYS CR, MoE
CR, MoA CR
Biomass Action Plan for the CR for 2009-2011
NO.
7
ACTIVITY
Mapping out of
opportunities for utilising
areas for the production
of energy crops with
view to the needs of food
and non-food production
Supporting FWS
8
DESCRIPTION
sufficient space in the system of education; at the
same time the areas of energy sources, end
consumption and energy efficiency have to be
interlinked.
We have to make the system of public and private
consultancy for forest owners more efficient so as
to mobilise the utilisation of forest biomass for
energy utilisation. We have to promote and
support the utilisation of forest biomass for
energy generation.
This helps stakeholders to find their way in
a broader context of biomass utilisation and to
facilitate decision-making for businesspersons.
PROPOSED SOLUTION
Devise teaching programmes at secondary schools and mainly at higher
education institutions that will target specific energy systems, if
possible in a wider context of energy management.
Assess the environmental impact of the utilisation of forest biomass
(impact on soil, water, biodiversity, nutrient cycling).
RESPONSIBILITY
Map out the possibilities of soil utilisation for growing energy crops.
Update in the individual time phases.
MoE CR, MoA CR
Provide maximum support for the expansion of
areas planted with fast-growing woody species.
Shift measures to support setting up of FWS areas as part of the RDP
and Axis II and announce this support by 1/1/2010 at the latest.
Use also reclaimed areas for FWS growth, support the planting and
further processing of logged wood.
Review the approach taken by the ERO in determining purchase prices
of electric power generated by RES in line with requirements posed by
the MoA CR and MoE CR. Both Ministries will draw on the latest data
related to biomass as well as on their long-term strategies concerning
biomass utilisation.
Start preparing the implementation of the Directive in time with view to
the demanding nature of the process and to the deadline given by
the EC for transposition into national legislation.
MoA CR
Raise awareness and include digestate into the regime of fertilisers.
MoA CR
Prepare a bill that makes provision with respect to heat generation from
RES in line with the potential EU Directive.
MoIT CR, MoE CR
Purchase price of
electricity from RES
Input data for determining the purchase price of
electricity from renewable sources.
Implementation of
Directive on the
promotion of energy
from renewable sources
Use of compost and
digestate on arable land
The draft Directive on the promotion of energy
from renewable sources that is under preparation
foresees transposition into national legislation by
31/3/2010.
EC Regulation No. 1774/2002 and its
interpretation, existing barriers and topics for
amending the Regulation, introduction of
a system of compost classification, greater
support and compost application.
Aim at presenting the Act that makes provision
with respect to supporting heat generation from
RES to the Government of the CR.
9
10
11
12
Promotion of an Act that
makes provision with
respect to heat generation
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ERO
MoIT CR
Biomass Action Plan for the CR for 2009-2011
NO.
13
14
ACTIVITY
from RES
Statistics about
the production and
utilisation of biofuels
Preservation of subsidies
for the production of
forest wood chips
DESCRIPTION
PROPOSED SOLUTION
RESPONSIBILITY
They enhance the quality and objectivity of
statistics for the production and utilisation of
biofuels (forest and agricultural biomass for
energy purposes).
Prepare a draft model of statistical fact-finding that would paint
a comprehensive picture of the flow of biofuels in the CR including
the evaluation of the import and export of biomass. Propose a system of
establishing both national and sectoral statistics.
Support the preservation of subsidies for
the production of forest wood chips; the subsidies
are in the powers of regions.
Support the preservation of this subsidy title when negotiating with
regions and highlight the importance of biomass energy for the regions
for the benefit of a clean environment, employment in the regions, tax
revenues and retaining investment in the regions, etc.
Czech Statistical
Office, coresponsibility of
MoIT CR, MoA CR,
MoE CR
MoA CR
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Biomass Action Plan for the CR for 2009-2011
7. MONITORING AND MODE OF EVALUATION OF THE ACTION PLAN
The fulfilment of targets set forth in the Action Plan will be subject to ongoing monitoring; at
the same time, feedback mechanisms will be defined. Monitoring and reporting will be
provided for by a narrow Action Plan Working Group. Besides that, there will be
communication within a wider working group. The narrow working group will meet from
time to time throughout the whole period of 2009-2011.
EVALUATION OF EFFECTS AND IMPACTS OF THE ACTION PLAN
Indicators that may be used for evaluating the effects of the Action Plan have been
incorporated into the existing strategic documents and Operational Programmes and their
utilisation is beneficial. Their monitoring within the Action Plan Working Group can thus
show trends seen in biomass utilisation from all major angles and based on feedback in their
evaluation can also help to amend the parameters of the Action Plan for a future period.
The basic monitored parameters include the following:
 Size and mode of utilising the potential
 Installed output
 Annual energy generation (electricity and heat)
 Annual generation of biofuels
 Economic impact
 Annual turnover of a sector
 Added value
 Impact of economic tools
 Costs and benefits
 Supporting SMEs and employment
 Regional development
 Environmental effects
 Climate protection
 Soil quality
 Maintaining cultural landscape
 Air protection
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Biomass Action Plan for the CR for 2009-2011
8. ANNEX 1 – LIST OF ABBREVIATIONS USED
AP
BDW
VAT
EC
ERO
EC
EU
EUR
EAFRD
LFAs
MoF CR
MfRD CR
MoIT CR
MoEYS CR
MoA CR
MoE CR
GR
RES
PES
RDP
FWS
SEC
SFT
SMEs
PGG
Biomass Action Plan
Biodegradable Waste
Value Added Tax
European Commission
Energy Regulatory Office
European Community
European Union
Euro = single currency of the European Monetary Union (valid from 1/1/1999)
European Agricultural Fund for Rural Development
Less Favoured Areas
Ministry of Finance of the Czech Republic
Ministry for Regional Development of the Czech Republic
Ministry of Industry and Trade of the Czech Republic
Ministry of Education, Youth and Sports of the Czech Republic
Ministry of Agriculture of the Czech Republic
Ministry of the Environment of the Czech Republic
Government Regulation
Renewable Energy Sources
Primary Energy Sources
Rural Development Programme of the CR
Fast-growing Woody Species
Communication of the European Commission
Set of Forest Types
Small and Medium-sized Enterprises
Permanent Grass Growth
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Biomass Action Plan for the CR for 2009-2011
9. ANNEX 2 – DIVISION
482/2005 COLL.
OF
BIOMASS
WITHIN THE
MEANING
OF
REGULATION NO.
Division of biomass into 5 main categories pursuant to Schedule No. 1 to Regulation No.
482/2005 Coll., which makes provision with respect to the determination of types, utilisation
modes and parameters of biomass for the promotion of electricity generation from biomass, as
amended by Regulation No. 5/2007 Coll.
GROUP 1 – TARGETED GROWTH OF ENERGY BIOMASS
(biomass for anaerobic fermentation, combustion and gasification)

Targeted growth of energy crops (annual, biennial and perennial plants and agricultural
crops);

Cereals and oil plants for energy utilisation (all above-the-ground matter);

Targeted growth of energy woody species.
GROUP 2 – BIOMASS NOT CONTAINED IN GROUPS 1, 3, AND 4 – UTILISABLE FOR ANAEROBIC
FERMENTATION AND THERMAL TRANSFORMATION PROCESSES
(biomass for anaerobic fermentation, combustion and gasification)
 Straw from cereals and oil plants;
 Cereal seeds unsuitable for food-processing utilisation;
 Other plant parts used for energy purposes;
 Invasive and expansive species of higher plants;
 Residual biomass from industries (breweries, bakeries, distilleries, processing of fruits and
vegetables, washing and cleaning, textile and tanning industries, etc.);
 Grass matter and biomass from gardening;
 Residual wood matter with a maximum diameter of 7 cm and length of 1 m;
 Used wood and wood materials;
 Energy compost;
 Waste treatment sludge;
 Waste paper and cardboard.
GROUP 3 – NON-UTILISED BIOMASS MATERIAL
(biomass for combustion and gasification)
 Sawdust;
 Shavings;
 Wood chips;
 Cuttings and residues from the wood-processing industry;
 Firewood.
GROUP 4 – BIOMASS FOR ANAEROBIC FERMENTATION AND THERMAL TRANSFORMATION PROCESSES
(biomass for anaerobic fermentation, combustion and gasification)
 Residual oil and fat;
 Slops and plant residues from distilleries;
 Alcohol produced from biomass;
 Other liquid biofuels;
 Bark.
GROUP 5 – BIOMASS SOLELY FOR ANAEROBIC FERMENTATION
(biomass for anaerobic fermentation)
 Biomass from industrial processing of animal products, sludge, meat and bone meal, fat from
rendering plants;
 Solid and liquid animal excrements;
 Polluted straw from the animal industry;
 Residues from kitchens and catering facilities;
 Biodegradable part of sorted industrial and communal waste.
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Biomass Action Plan for the CR for 2009-2011
10. ANNEX 3 – OVERVIEW OF SUPPORT AND SUBSIDY TITLES
1. SUPPORT FOR PHYTOMASS GROWTH FOR ENERGY UTILISATION
Carbon Credit
Support is provided in all EU Member States for the growth of any crop that will be subject to
energy utilisation and stands at EUR 45/ha to the extent of a guaranteed area of 2,000,000 ha
within the whole of the EU. A continuous stretch of arable land with a minimum area of 1 ha
has to be used for the growth of plants for energy use. The energy crop has to be grown on
the plot as the main crop in a given year. This type of subsidy will be phased out in the future.
2. SUPPORT FROM EU FUNDS WITHIN THE OPERATIONAL PROGRAMME “ENVIRONMENT”
(MOE CR) – PRIORITY AXIS 3 – SUSTAINABLE UTILISATION OF ENERGY SOURCES
Support for the construction of new facilities and renovation of existing facilities with the aim
of increasing the utilisation of RES for heat and electricity generation and for co-generation.
Energy savings and utilisation of waste heat target individuals. Environmentally-friendly
heating and hot water preparation systems for individuals are supported.
As part of the OP “Environment” non-commercial activities are supported so that there is no
overlapping with the OP “Enterprise and Innovations”, which supports business entities.
3. SUPPORT FROM EU FUNDS WITHIN THE OPERATIONAL PROGRAMME “ENTERPRISE AND
INNOVATIONS” (MOIT CR) – ECO-ENERGY PROGRAMME
This programme implements Priority Axis 3 “Efficient Energy” of the Operational
Programme “Enterprise and Innovations” 2007-2013. The programme is administered by
the Ministry of Industry and Trade of the CR. CzechInvest, the Investment and Business
Development Agency, serves as the intermediary authority for this type of support.
Support is provided for projects that aim at reducing energy intensity per production unit
whilst maintaining long-term stability and energy availability for business entities, and that
also want to limit the dependence of Czech economy on the import of energy commodities,
reduce the consumption of fossil primary energy sources, increase the utilisation of RES,
utilise a major potential of energy savings and utilise RES also in large companies and utilise
the available potential of secondary energy sources.
4. INVESTMENT SUPPORT PROVIDED FROM EU FUNDS WITHIN THE RURAL DEVELOPMENT
PROGRAMME (MOA CR) – GROUP III.1.1 – DIVERSIFICATION INTO NON-AGRICULTURAL
ACTIVITIES
The support focuses on the construction of decentralised facilities for the processing and
utilisation of renewable sources of fuels and energy (biomass or biogas) for heating or electric
power generation; boiler rooms, heat or power distributions, biogas stations (homogenisation
sump, reactor, biogas reservoir, storage tank, co-generation unit, heat exchanger, etc.) and on
project and technical documentation that is part of the purchase price.
The utilisation of existing buildings and implementation of innovative approaches are
supported in the first place. Projects may be implemented in municipalities with up to 2,000
inhabitants in the Czech Republic. Provided renewable energy sources are processed and
utilised, projects may be implemented in the whole of the CR with the exception of the capital
city of Prague.
5. NATIONAL PROGRAMME FOR SUPPORTING ENERGY SAVINGS AND UTILISATION OF RES –
PART B (MOE CR)
Support is provided within a national programme aimed at energy savings and utilisation of
RES from the State Environmental Fund of the CR. In 2008 an investment subsidy was
- 17 -
Biomass Action Plan for the CR for 2009-2011
granted for supporting environmentally-friendly modes of heating and hot water heating for
flats and family houses for individuals as part of programme 1.A.a – boilers for biomass,
where the subsidy is up to 50% of eligible costs with a maximum amount of CZK 50,000.
The above support will be provided in the same amount also in 2009.
6. CONTRIBUTION TO BRUSHWOOD REMOVAL BY WOOD-CHIPPING OR CRUSHING BEFORE
FOREST RENEWAL
Contribution in the amount of up to CZK12,000/ha pursuant to the Binding Rules for
the Provision of Financial Contributions for Forest Farming in 2008 (MoA CR) in accordance
with Schedule No. 10 to Act No. 360/2007 Coll., which makes provision with respect to
the state budget of the Czech Republic for 2008. The contribution covers brushwood removal
by wood-chipping or crushing before forest renewal and subsequent dispersion or other
utilisation of the matter. Regional Authorities decide on the payment of the contribution.
7. ACT NO. 180/2005 COLL.,
WHICH MAKES PROVISION WITH RESPECT TO SUPPORTING
ELECTRICITY GENERATION FROM RES – A SYSTEM OF PURCHASE PRICES AND GREEN
BONUSES STIPULATED BY ACT NO. 180/2005 COLL.
Upon Act No. 180/2005 Coll. the distributor system operator/s has/have the obligation to
purchase electricity from renewable sources at prices stipulated by the Energy Regulatory
Office (ERO). Costs related to supporting RES are reflected in the regulated prices of electric
power for all end customers in the CR and take the form of a nation-wide unified contribution
to electricity generation from RES. The amount of the contribution is determined by the ERO
always for the following year. Following an accomplished purchase funds are subsequently
transferred among the individual distribution companies so that those that compulsorily
purchase large amounts of electricity from RES are not disadvantaged.
Those who generate electric power may offer it for purchase either in the form of purchase
prices or in the form of green bonuses. Provided support is given in the form of purchase
prices the regional distribution system operator or the transmission system operator has
the obligation to purchase from the electricity producer the whole volume of electricity
generated by the given source. Provided support is given in the form of green bonuses
the producer has to find his/her electric power customer himself/herself. The regional
distribution system operator or the transmission system operator always pays the purchase
price or green bonuses to the producer.
Pursuant to S. 6(4) of Act No. 180/2005 Coll. purchase prices of electricity from renewable
sources generated by new sources may drop y-o-y by a maximum of 5% p.a. Provided
purchase prices decrease, yields per unit of electricity from renewable sources have to be
retained for a period of 15 years for the individual categories of renewable sources.
8. TAX EXEMPTION
8.1 Income Tax Act No. 586/1992 Coll.
Pursuant to S. 4(e) the following income shall be exempt from income tax: income from
the operation of small hydropower plants with an output of up to 1 MW, wind power plants,
heat pumps, solar equipment, equipment for the generation and energy use of biogas and
wood gas, equipment for electricity or heat generation from biomass, equipment for
the generation of biodegradable substances stipulated by special regulations and equipment
for the utilisation of geothermal energy; the income shall be exempt from tax in the calendar
year in which the above have been put into operation as well as in the following five years.
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Biomass Action Plan for the CR for 2009-2011
8.2 Environmental Tax Reform
Pursuant to Council Directive 2003/96/EC restructuring the Community framework for
the taxation of energy products and electricity, new consumption tax on electricity, natural
gas and solid fuels has to be introduced as of 1/1/2008. Another target having the same
importance is to gradually change the structure of electric power and heat generation so that it
does not rely primarily on lignite and so that it the rule that “what is environmental pays” can
apply. Primary energy sources that are more environmentally-friendly should also come at
a more favourable price. The price of fuels that have a negative environmental impact should
gradually rise and cleaner energy such as gas or biomass should be made more favourable.
Fundamental documents comprise Directive of the European Parliament and the Council
2003/96/EC, Government Resolution No. 25 as of 3 January 2007 and Government
Resolution No. 531 as of 23 May 2007. The Government negotiated bills related to the EDR
at its meeting on 23/5/2007. As part of Phase 1 of the EDR, which was completed as at
1/1/2008, new consumption tax on electricity, natural gas and solid fuels was introduced.
The proposed tax exemption covers among other things the following cases:
Natural gas: - Natural gas used for electricity generation;
- Natural gas used for the propelling of private vessels;
- Natural gas for households;
Solid fuels: - Solid fuels for electricity generation;
- Solid fuels used as fuel for vessels;
Electricity: - Environmentally-friendly;
- Generated from taxed products that are subject to tax on natural gas or solid
fuels or consumption tax in facilities with a rated electric output of up to
2 MW, provided it is consumed directly or is supplied solely for those
supplies;
- For technological purposes necessary for electricity generation or cogeneration.
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