Act on the Promotion of the Use of Renewable Energy Sources (Act No. 180/2005 Coll.)

Country	Czech-Republic
Year Implemented	2005 (amended in 2006 and 2011)
Policy Status	In force
Agency	•Ministry of Industry and Trade •Energy Regulatory Office
Policy Type	•Incentives/Subsidies   •Feed-in Tariffs •Regulatory Instruments   •Quota Systems   •Standards
Policy Target	•Multiple Renewable Energy Sources   •All
Policy Sector	•Electricity
Description	The Act regulates the rights and obligations of participants in the renewable electricity market and conditions of support for the purchase and registration of electricity production from renewable sources. The purpose of the Act is to support the use of renewable sources of energy, i.e. wind energy, solar energy, geothermal energy, water energy, soil energy, air energy, biomass energy, landfill gas energy, sewage gas energy and biogas energy. The purpose of the Act is also constant increasing of the share of renewable sources in the consumption of primary energy sources, economical use of natural resources and meeting of an indicative target of the share of electricity produced from renewable sources in the gross consumption of electricity in the Czech Republic at 8 % by 2010. The support applies to the production of electricity from renewable sources generated in facilities in the Czech Republic using renewable sources and it has been determined differently subject to the type of a particular renewable source, level of installed capacity of the generating plant and also, for instance, by parameters of biomass. The support applies also to the production of electricity from mine gas from closed mines. The Act sets prices for renewable electricity separately for individual types of renewable sources and green bonuses, the manner of regular assessment of the share of electricity produced from renewable sources is the gross consumption of electricity for the previous calendar year and the calculation of anticipated impacts of support on the overall price of electricity for end customers in the next calendar year. The Act also provides for the performance of controls through the National Energy Inspection and the amount of individual penalties for administrative delays. The Act comes into effect on the first day of the third calendar month following the date of its promulgation, i.e. as from 1 August 2005. As of 1 January 2006, the Act introduced a new support system, the key features of which are: -The right for a plant for renewable electricity production to be connected to the grid -Guaranteed revenue per unit of electricity produced over a 15-year period as of the date a plant is put into operation -The possibility of choosing between two support systems: 1- minimum feed-in tariffs - all the electricity produced can be sold to the relevant distribution system operator 2- green bonuses (surcharges on the market price of electricity) - electricity produced rom renewable sources can be placed on the single electricity market -Support for electricity used for internal consumption (not supplied to the grid) - Preserving the level of feed-in tariffs for 15 years for plants already in operation - A maximum year-on-year decrease in electricity feed-in tariffs for new plants of 5% In 2010, the Act was further amended, correcting and upgrading the system of quarantee price. It also institutes the obligation for electricity traders to buy electricity from renewable energy sources, and a support system for heat from renewable energy sources. The modification of the law was decided due to the significant reduction of investment costs for the construction of photovoltaic installations and limited authority of the Energy Regulatory Office to react and regulate support adequately. The reduction of support to photovoltaic plants became necessary to maintain a fair and equitable support for all types of renewable energy sources. The subject of conscription was electricity generated from photovoltaic systems in the years 2011, 2012 and 2013. Conscription was only applied to three years and shall be applicable to PV manufacturers in activity since 2009 and 2010. Amount of charges was set differently for the feed-in tariffs (26%) and green bonuses (28%).
URL	www.eru.cz/index_aj.html
Legal References	Act No. 180/2005 Coll.