Publication details
Energy Policy in Need of Reality Check: the Case of the Czech Republic
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| Year of publication | 2019 |
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| Description | In 2015, when the Czech Republic finally adopted the updated State Energy Policy after more than ten years of complicated debates, the country finally formulated its long-term energy policy goals. Yet the achievement of these goals still faces major challenges, including financing, energy markets integration, dependency patterns, geopolitical considerations or supply security concerns. Czech Republic’s electricity generation still bears features of centralized energy systems built on extensive base load sources as it relies on coal for more than 50% with another 34% being secured by nuclear power plants. Coal sector is under pressure due its environmental impact and the country’s energy mix is about to undergo a major shift towards non- or low-carbon energy sources. At present, the country stands at an important crossroad: it will either build its future energy mix around nuclear energy, or around natural gas. Czech Republic is strongly committed to develop nuclear energy: all official state energy policy documents support construction of new nuclear units, expanding the currently existing portfolio of six reactors, yet the dubious economic reality of this major investment has been the reason for several postponements of the final decision, inflicting uncertainty in the nuclear sector as well as in the power utility sector in general. If the nuclear way turns out to be unviable, increased gas-based power generation would indeed decrease emissions, however, it would also bring significant security- and geopolitics-related concerns mainly due to the origin of the supplies and related transit routes. This chapter presents the Czech Republic’s energy policy goals and overviews the situation in the sector. The text focuses on the power utility sector as the most important, most sensitive and most complicated energy subsector of the country. The chapter also contains an analysis of major challenges, including current trends in electric mobility, smart energy grids development, and energy security and security of supply considerations. |