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Karlovy Vary, Czechia - Regional Profile 1

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Karlovy Vary, Czechia - Regional Profile 1 KARLOVY VARY, CZECHIA - REGIONAL PROFILE 1 REGIONAL PROFILE Karlovy Vary GENERAL INFORMATION Country: Czechia Region Name: Karlovy Vary (Karlovarsky) Region NUTS2 code*: CZ04 - Severozápad Region NUTS3 code: CZ041 - Karlovy Vary Region Affected coal communities: Sokolov District Main urban centres in the region (by population): Karlovy Vary (population: 48,501) Cheb (population: 31,988) Sokolov (population: 23,241) Ostrov (population: 16,731) Chodov (population: 13,394) As (population: 13,210) Marianske Lazne (population: 12,800) *NUTS: Nomenclature of Territorial Units for Statistics NOTICE ON COVID-19 The data contained within this regional profile was primarily gathered prior to the COVID-19 pandemic. It is recognised that the pandemic has had an adverse impact on energy demand. Although the consequences and implications are significant, they remain emergent and dynamic. An update to this document should be considered, once these consequences and implications are clearer and more quantifiable. PLATFORM FOR COAL REGIONS IN TRANSITION KARLOVY VARY, CZECHIA - REGIONAL PROFILE 2 Overview Karlovy Vary region, which together with Ústí nad Labem Region (or Ústecký Region) make up the Severozápad (Northwest) statistical area at NUTS 2 level, is situated in the western part of the Czech Republic. It is the smallest Czech region in terms of population size (295,285 inhabitants) and among the smallest in terms of land area (3,314 km2). The region is divided into 3 districts (Cheb, Karlovy Vary and Sokolov), of which the district of Sokolov is the most affected by coal mining and related industries. Regional socio-economic profile MAP OF KARLOVY VARY REGION Karlovy Vary Severozápad Date / Sokolov Region Czechia District (NUTS 2) (NUTS 0) Source (NUTS 3) Population 88,553 295,285 1,115,865 10,626,430 [persons] 2018 mid-year Population density CZSO 117 89 129 135 [persons/km2] Employment No data 151,800 No data 5,293,800 [No. persons employed] Employment rate [% share of population aged 15 No data 60.4% 57.1% 59.2% and above] 2018 Unemployment rate CZSO [% share of labour force aged 3.9% 2.9% 3.4% 2.2% 15-74] GDP per person No data €12,600 €13,600 €19,500 [€1 = CZK 25.647] Educational attainment Karlovy Vary Region Severozápad Czechia % % % 69,1 66,8 60,7 % % % % % 19,2 17,8 15,7 12,8 11,7 6,1% Less than secondary education (levels 0 - 2) Secondary or post-secondary Tertiary education (levels 5 – 8) non-tertiary education (level 3 – 4) PLATFORM FOR COAL REGIONS IN TRANSITION KARLOVY VARY, CZECHIA - REGIONAL PROFILE Agriculture, Forestry & Fishing Agriculture, Forestry & Fishing 3,20% 2,7% 2,10% 2,30% 2,20% 3,00% Industry Industry 28,90% 31,1% of which manufacturing 35,80% of which manufacturing 33,20% 30,20% 29,00% 21,40% 25,4% 26,40% 28,20% 25,70% 26,60% Construction Construction accommodation and food services accommodation and food services Distributive trades, transport, Region Vary Karlovy Distributive trades, transport, Region Vary Karlovy 5,80% 6,7% 6,60% 8,50% 5,60% 7,50% Employment bysector Information and communication Information and communication 20,40% 26,1% 17,50% GVA persector 21,50% 19,20% 23,70% Financial and insurance activities Financial and insurance activities 1,10% 0,5% Severozápad 2,20% Severozápad 1,00% 5,50% 2,80% 0,80% 0,9% 1,10% Real estate activities 0,90% Real estate activities 3,90% 1,70% administrativeProfessional, and scientific,support services technical, administrativeProfessional, and scientific,support services technical, Czechia 11,30% Czechia Public administration, defence, education, human 1,5% Public administration, defence, education, human 9,20% 1,60% 8,70% 1,80% health and social work activities health and social work activities 3,60% 4,4% 4,10% 5,60% 6,90% 8,80% Arts, entertainment and recreation; 21,40% 22,5% Arts, entertainment and 18,90% 21,50% recreation; other services 15,50% 18,10% other services 3,60% 3,6% 2,40% 3,80% 2,20% 3,60% 3 PLATFORM FOR COAL REGIONS IN TRANSITIONData / Source: 2018, CZSO Data / Source: 2018, CZSO KARLOVY VARY, CZECHIA - REGIONAL PROFILE 4 General description of the demographic to a lack of opportunities for higher education within the and economic profile of the region, region. No technical universities have been established including notable trends and projections despite the important role of industry. The region accounts for only 0.3% of research and development personnel in Karlovy Vary is located in the westernmost region of Czechia and only 0.2% of national R&D expenditures. With Czechia, located in the historical region of Bohemia, and a lack of education opportunities and modern economic is a popular destination for its spa resorts. The region is diversification, considerable emigration of the younger the smallest in the country and home to 295,285 people, population and the educated workforce, seeking better job divided into three districts, namely Cheb, Karlovy Vary opportunities in other regions or abroad (e.g. Germany), has and Sokolov. Next to its spa resorts, the region holds a taken place. significant amount of Czechia’s brown coal reserves– two of which are located in North Bohemia and near the town of Sokolov. Overview and general Karlovy Vary has a regional GDP per person corresponding characteristics of coal-related to 65% of the Czech average in 2018, as compared to 75% for the other main coal area of Moravskoslezsko industry and locations Region (Moravian Silesian Region). In 2018, the region had the lowest average gross monthly wage of CZK 27,974 Located in western Bohemia, in the western part of the (ca. €1,000 in 2018), compared to a national average coalfield below the Krušné hory mountains (Ore Mountains of CZK 31,868 (ca. €1,240 in 2018), with an overall low Range), the brown coal basin around the town on Sokolov unemployment rate of 2.9% in 2018, somewhat higher covers 30.5 km2 and is the second largest site with lignite than the 2.2% at national level. The unemployment rate reserves in the Czech Republic. Presently, lignite extraction in Karlovy Vary has fallen from 9% in 2013, following is the key energy source of the region and is extracted the general positive national trend. The three districts by the privately-owned Sokoloská uhelná (SUAS), which of Karlovy Vary have unemployment rates of 5% in the operates two surface mines in the eastern part of the Sokolov District, 4.1% in Karlovy Vary and 3.7% in Cheb. Sokolov Basin; the Jiří mine and the much smaller locality However, these overall shares of unemployment have of Medard. Mining has ceased in the western part of the increased by April 2020 compared to the same period in Basin. Between 2017 and 2019 around 7 million tons of 2018 and 2019, due to the consequences of the COVID-19 lignite were extracted per year, roughly 17.5% of the total pandemic. A significant increase in unemployment is lignite extraction in Czechia. In 2019, 5.9 million tons of expected in summer 2020, when notice periods will expire. lignite were extracted, expected to further decrease to 5.2 million tonnes in 2020 and 3.8 million tonnes by 2021. The regional economy is heterogeneous, with a mix of economic sectors of low technology levels and low Sokolovská uhelná (SUAS) operates two coal-fired plants, productivity. Traditionally, there has been a focus on mining Vřesová and Tisová. The Vřesová plant consists of a and energy production, together with non-metallic mineral combined-cycle power plant (CCPP) and a thermal plant. products (glass, porcelain, ceramics and building materials) Pressure gasification of coal is used to produce “energy- and the textiles industry. Although still representing 16% gas” as fuel for the CCPP, with the undersized fraction of the regional economy in terms of employment, these of coal used in the thermal plant. SUAS intends to shut industries have lost importance over the past 20 years down “energy-gas” production for the CCPP in mid-2020. mainly due to their high demands on energy, raw materials These two power plants generate ca. 97% of electricity and human resources. Other important activities of the and 85% of the thermal energy in the region. Thermal region are in engineering and the chemicals industry. energy is used for central heating supply for 48 thousand Overall, no specific dominant sector(s) has been formed in households, corresponding to approximately 120 thousand the region and it does not display identifiable evidence of persons and over a third of the population of the Karlovy economic and research potential corresponding to deeper Vary Region. The heat is distributed by steam piping and production specialisation. The absence of identifiable hot water piping to households, companies and public specialisation is considered to be a disadvantage for the buildings (e.g. regional hospitals). Many of the residential region. agglomerations of the region are connected to the central heat supply system. Households in municipalities with no Educational attainment levels in Karlovy Vary are among connection use individual heating sources, such as wood the lowest in the country, with 19.2% of the population or coal. Renewable energy sources play a minor role in the having achieved only basic education levels and only provision of electricity. 11.9% with tertiary education levels or above in 2018. The region is characterised by a lack of qualified employees in the technical sectors, which may be partly attributed PLATFORM FOR COAL REGIONS IN TRANSITION KARLOVY VARY, CZECHIA - REGIONAL PROFILE 5 Regional coal industry profile Coal mining Date Type of coal Lignite Type of coal extraction Surface mining 2019 Number of coal mines 2 Production of coal [Mt annual] ca.
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