Wind Energy in the Czech Republic

Mgr. Neela Winkelmann, Ph.D.

November 2006 Electricity Market

~ 74% of gross electricity production: ČEZ

ČEZ: 67.4 % owned by the state, 2002: government cancelled privatisation tender, integration of power branch instead, ‘ČEZ group‘ today largest energy utility in CEE

1 Transmission grid operator: ČEPS

Distribution grid operators: ČEZ

E.on

Prague / EnBW / RWE

Electricity market operator: owned by state

Illustration: Energy Regulatory Office: since 2001 adapted from www.cez.cz Electricity sources Czech Republic

Total installed capacity 2003: ~ 17,500 MW Czech Republic - 2nd largest electricity exporter in Europe

hydro: 2.39% 3% 0.6% RES: 0.89% 3.3% coal nuclear other 31% 62% gas pump storage

Source: MPO, CZSO

RES – E target (Directive 2001/77/EC): 8 % of gross national consumption by 2010 Wind Energy Potential

Wind energy density (W/m2) at 40 m height - VAS/WAsP models

Realisable potential: up to 3,000 MW

Prognosis by MPO: ~ 500 MW installed by 2010

Source: www.env.cz Wind Energy Support

Energy Act No. 458/2000 Coll.: grid access for RES – E installations, purchase obligation

Energy Regulatory Office 2002, 2003, 2004, 2005: annual feed-in tariff w/o guarantee Æ no investment security

Act No. 180/2005 Coll. - Act on the promotion of production of electricity from renewable sources presented to Parliament in late 2003, originally introducing certificate & quota system for new RES-E installations above 200 kW and preserving feed-in system with 15-year guarantee for existing installations (esp. coal power plants co-firing biomass) new version - August 2004 – feed-in system available for all, tariffs set annually Act No. 180/2005 Coll.

passed on: March 31, 2005 in force as of: August 1, 2005 priority grid access

feed – in tariffs green bonuses (supplement to market price) guarantee 15 years from operation start no guarantee

Art.3(1): support for wind turbines up to 20 MW / km2 Art.6(4): feed-in tariffs starting 2007 ≥ 95% of previous year Art.6(1) b)1.: conditional guarantee of investment return within 15 years NB: Act requires 7 pieces of secondary legislation (!) Barriers, problems – Act No.180/2005 Coll.

obtaining guarantee of origin? construction permit producers

change of support es! systems oss fs ridl s arif g g use difficult in t rin bon d- ove en fee r c gre y fo onl grid operators

electricity sellers electricity kept from reaching

electricity from RES market consumers charging of support to consumers? Installed Capacity – mid 2006 Location Turbines Manufacturer MW Since

Mravenečník, Šumperk 3 Wind World, EWT 1,17 1993, 1995, 1996

Ostružná, Jeseník 6 3 1994 Hostýn, Kroměříž 1 Vestas 0,225 1994 Nový Hrádek, Náchod 4 EKOV 1,6 1995 2004: Neklid-Boží Dar, Karlovy Vary 1 EWT 0,315 2001 Protivanov, Prostějov 1 Fuhrländer 0,1 2002 18 MW Jindřichovice p. S., Liberec 2 1,2 2003 Nová Ves v Horách, Most 2 REpower 3 2003, 2004 2005: Loučná, Krušné hory, Chomutov 3 DeWind 1,8 2004 29 MW Lysý vrch, Heřmanice, Liberec 5 Tacke 2,5 2004 Nový Kostel, Cheb 4 Vítkovice, Tacke 1,82 2004 Pohledy, Svitavy 1 Fuhrländer 0,25 2004 Mladoňov, Šumperk 1 Tacke 0,5 2004 mid- 2006: Petrovice u Chabařovic, Ústí n. L. 1 Enercon 2 2005 40 MW, Protivanov, Prostějov 2 REpower 3 2005 Břežany, Znojmo 5 Vestas 4,25 2005 51 turbines Hraničné Petrovice, Olomouc 2 , Vestas 1,7 2005 Gruna-Žipotín, Svitavy 2 DeWind 1,2 2006 Nové Město, Teplice 3 Enercon 6 2006 source: ČSVE Pavlov, Jihlava 2 Vestas 4 2006 Latest Developments

„ Chomutov: 400 MW ? Developer : Czech Venti, a.s. (Partner: BAE Systems, PLC.) 2006: ČEZ claims interest in project

illustration: „Větrný park Chomutov“, Czech Venti, 2003 Latest Developments

„ 2006: ČEZ buys wind projects

End 2005: ČEZ founds subsidiary, ´ČEZ Renewable energies` April 2006: ČEZ announces investment of 20 bill. CZK in wind energy over next 15 years June 2006: Tender for wind projects (≥10 MW, ≥ 6 m/s at hub height, at least partially approved) Priorities: Wind vs. Waste Act No. 180/2005 Coll. - support of electricity from RES vs. Art. 32 Act No. 91/2005 Coll. (Energy Act) - support of electricity from, e.g., unsorted waste

support measure electricity electricity from RES from waste priority grid access + + priority electricity uptake - + feed-in tariffs + guarantee + - supplement to market price + + priority electricity trade - + guarantee of origin + + Priorities: Wind vs. Waste

Report on the fulfillment of the national RES - E target for 2004

Contribution electricity Contribution to to electricity production RES - E (%) consumption (MWh) (%) electricity from biologically degradable 10.031,0 0,3620 0,0119 fraction of waste* wind turbines 9.870,8 0,3562 0,0117 (> 100 kW)

* calculated Source: MPO, MŽP, ERÚ Thank you for your attention.

Dr. Neela Winkelmann Ökologische Beratung Deutschland/Tschechien Bubenečská 28 160 00 Praha 6 Tschechische Republik Tel.: 00420 – 224 310 665 Fax: 00420 – 224 310 664 [email protected], www.wind-tschechien.de, www.vetrnyserver.cz