Czech Republic (Updated 2015) 1
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Czech Republic (Updated 2015) 1. GENERAL INFORMATION 1.1 Country Overview The Czech Republic (CR) is, together with Slovakia, the successor country of the former Czechoslovakia, which was divided on 31 December 1992. In May 2004 the Czech Republic joined the European Union. The country is a member of many international organizations, including the IAEA, OECD (since 1995) and NATO (since 1999). 1.1.1 Governmental System The CR is a democratic country led by the President, with a parliamentary regime. The Government (Cabinet) is headed by the Prime Minister who has the main executive power. The Parliament has two chambers: the Chamber of Deputies, and the Senate. 1.1.2 Geography and Climate The CR is a relatively small country of 79 000 km 2 consisting of the three historic regions of Bohemia, Moravia and Czech Silesia. The country's topography is quite varied, ranging from plains, to hills, to highlands and mountains. Regions in the range from 200m to 500 m above sea level make up about 74% of the country. The country is situated in the centre of Europe and borders Austria to the south, Germany to the west and northwest, Poland to the northeast and Slovakia to the southeast. The country has a mild climate influenced mainly by the west wind from the Atlantic Ocean. 1.1.3 Population The CR has a population of 10.538 million inhabitants (2014). Three quarters of the population live in urban areas. The population density is approximately 133 inhabitants per km 2. The population after decline in the 1990s is increasing slightly but it is expected to decline again. TABLE 1. POPULATION INFORMATION 1970 1980 1990 2000 2010 2014 Population (millions) 9.8 10.3 10.3 10.3 10. 5 10,5 Population density 124.3 130.4 130.7 130.2 133,3 133 ,4 (inhabitants/km 2) Urban Population as % of total 64.40 75.17 75.22 73.99 73.70 73 Area (1000 km 2) 78.9 Sources: Czech Statistical Office, IndexMundi 1.1.4 Economic Data The development of the Czech economy after the year 1989 has been particularly characterized by the process of economic reform. The reform basically finished in the 1990s and continued with less substantial changes (in some areas) until 2004 when full membership of the EU was achieved. The GDP development in USD is shown in Table 2, but a better picture would be given by using local currency figures because of the rapid changes in exchange rates. “An export-led recovery began in 2013 and is expected to gather pace in 2014 as world trade strengthens, reversing the two-year decline in private investment. Stronger consumer confidence and higher real income growth should raise private consumption growth. However, only in 2015 will the pace of GDP growth start to reduce economic slack and the unemployment rate. A slightly supportive fiscal policy stance is appropriate, as fiscal consolidation at this point could derail the fragile recovery. Once the recovery is solidly in place, measures to secure fiscal sustainability should be adopted. The central bank started intervening in the foreign exchange market late in 2013, judging that unconventional monetary policy was needed to preserve the credibility of the inflation target in the face of a prolonged period of low inflation and the threat of deflation. The authorities should return to the floating-rate policy as soon as deflation risks have definitively receded. Active labour market policies should be enhanced to avoid unemployment becoming entrenched.” [OECD] TABLE 2. GROSS DOMESTIC PRODUCT (GDP) 1980 1990 2000 2010 2014 GDP (millions of current 29,1 34,9 50,8 207 205,1 US$) GDP per capita (current 2,830 5,336 5,521 19,8 19,5 US$/capita) GDP (millions of constant NA 101 106.4 100,7 104,4 2005 US$) GDP per capita (PPP * NA 12.3 15.6 13,95 13,5** US$/capita) Sources: IAEA Energy and Economic Database, IMF, Worldbank * PPP: Purchasing Power Parity **2013 1.2 Energy Information 1.2.1 Estimated available energy TABLE 3. ESTIMATED ENERGY RESERVES Solid Liquid Gas Uranium Total amount in specific units 1051,8 kt 1664 kt 4660 mil. m 3 338 t Source: Ministry of Industry and Trade 1.2.2 Energy Statistics General energy balance (energy statistics) is shown in Table 4 (for electricity see Table 5). The year 1995 can be taken as the bottom of a U-curve, i.e. the lowest level of economic activity after restructuring. The structure of consumption has changed. Brown coal remains the main source of energy and continues to cover approximately 57% of the primary energy sources. But in absolute numbers its use has decreased by about 30% in comparison to 1990. Both import of crude oil (mainly for transport) and natural gas has increased mainly as result of road transport expansion and replacement of coal by gas for heating. An increase in “Primary heat and electricity” (mainly nuclear) between 2000 and 2005 is a result of the commissioning of Temelín NPP. TABLE 4. ENERGY STATISTICS INDICATOR [PETA-JOULES] 1990 1995 2000 2005 2010 2012 * ENERGY PRODUCTION TOTALS 1 730.5 1 409.8 1 246.7 1 343.0 1301,7 1308.4 Solid fuel 1 571.7 1 253.6 1 078.4 1 045.8 966,6 931.3 Liquid fuel 2.1 6.1 7.4 13.3 11,5 20.9 Gaseous fuel 8.4 8.6 7.1 6.5 14,3 21.5 Primary heat and electricity 148.4 141.5 153.8 277.6 309,2 334.7 IMPORT TOTALS 592.1 726.1 728.3 840.7 833 775.4 Solid fuel 45.3 63.3 45.0 43.7 84,3 70.5 Liquid fuel 317.1 350.7 333.5 428.4 425,9 403 Gaseous fuel 209.8 270.0 318.3 324.4 295,2 260.2 EXPORT TOTALS 158.9 397.3 338.5 329.5 359,8 348 Solid fuel 105.1 341.0 229.7 196.2 225,1 185.7 Liquid fuel 21.8 33.6 39.9 36.1 45,6 48.4 Gaseous fuel 24.1 0.0 1.5 7.1 11,3 10.6 NET IMPORT (IMPORT – EXPORT) 427.4 433.2 328.8 389.8 511.4 473,2 Solid fuel -59.8 -277.7 -184.7 -152.5 -140,8 -115.2 Liquid fuel 295.3 317.1 293.6 392.3 383,9 354.6 Gaseous fuel 249.6 185.7 270.0 316.8 317.3 283,9 GROSS CONSUMPTION OF PRIMARY 1739 2 076.1 1 749.7 1 656.7 1 855.7 1845 ENERGY RESOURCES (TOTAL) Solid fuel 1 348.2 1 005.8 906.4 899.4 850,9 793 Liquid fuel 355.5 321.6 314.7 389.8 397,1 376.9 Gaseous fuel 226.4 279.3 317.8 334.6 341,6 296.1 Primary heat and electricity 146.0 143.0 117.8 231.9 255,4 273 FINAL CONSUMPTION (TOTAL) 1 303.2 1 091.3 1 002.6 1 130.8 1122,1 1028.3 Source: Czech Statistical Office *the last update in 2012 1.2.3 Energy policy The current version of the State Energy Policy of the CR prepared by the Ministry of Industry and Trade as an official document with a horizon of the next 30 years was approved by the Czech Government in March 2004. The Energy Policy specifies a comprehensive set of priorities and long-term goals taking into account energy issues together with environmental, economic and social aspects (see http://www.mpo.cz/dokument155315.html ). An updated version of the Policy with a horizon 2040 was drafted in December 2014, and following an intergovernmental discussion it was approved on 18 th May 2015. 1.3 The electricity system 1.3.1 Electricity policy and decision making process As the energy sector has been mostly privatized, there is no special electricity policy – parts of the energy policy can be interpreted as an electricity policy, and the decision making process is based on the decisions of individual companies inside of the legal and institutional framework which is described below. The state still owns about 70% of shares of ČEZ, a.s. (Czech Power Company, www.cez.cz), the major energy production and distribution company. In the long-term, state influence in the energy sector is anticipated only in the form of indirect measures (legislation, pricing and taxes), regulating natural monopolies in particular industries and of course assuring energy security (mainly by management of ownership rights). The legislative background is as follows: • The Act on Business Conditions and Public Administration in the Energy Sectors (Energy Act No. 458/2000 Coll., as amended by the Act No. 158/2009 Coll.) establishing a new regulatory regime regulates business in the electrical power sector. According to the Energy Act, electricity generation, distribution, transmission and electricity trading is subject to licensing. Support for cogeneration of electricity and heat in the form of a duty to buy the produced electricity and in the provision of financial support to electricity production is stated there as well. The Energy Act introduces the market environment, opens the electricity and gas markets and establishes relevant institutions: the Energy Regulatory Office ( www.eru.cz ), the Electricity Market Operator ( www.ote-cr.cz ) and State Energy Inspection (www.cr- sei.cz ). • The Energy Management Act (Act No. 61/2008 Coll.) stipulates the rights and obligations of natural and legal bodies in the management of energy, in particular electricity and heat, as well as gas and other fuels.