The Czech Republic (Czechia) aims to phase out coal at an almost unprecedented pace. The IEA commends Czechia for such an ambitious phase-out. Coal is a major fuel source in Czechia, currently providing more than one-third of Czechia’s electricity and half of its district heating. Coal-fired plants are slated for retirement by 2033, but economic drivers may close them earlier. This would be an extraordinary transformation of Czechia’s energy system. The transition from its fossil fuel legacy can be a springboard to building a vibrant clean energy economy. But it is not without challenges, such as addressing local impacts in coal-dependent regions, accelerating the deployment of alternative sources of energy, managing workforce transitions and gaining public acceptance. There is no time to waste: decisions taken in the coming years will be pivotal to determining the success of the phase-out. This report provides timely advice on how Czechia can achieve its goals, including in two focus areas: replacing coal in power generation and decarbonising heating in buildings.

Updating Czechia’s suite of energy strategies is a pressing priority, as is ensuring their collective coherence. Doing so will provide a clearer direction to stakeholders and boost investor confidence. The 2024 National Energy and Climate Plan (NECP) sets ambitious goals, including greenhouse gas (GHG) emissions reductions, and increasing the share of renewables and nuclear in power generation. To achieve these goals, many of the associated plans and guiding documents, including the State Energy Policy (2015) and the Climate Protection Policy (2017), need to be updated or more clearly defined, with a particular focus on the long-term pathway for renewables and the role of natural gas in the energy transition. Czechia has set laudable goals and updating its strategic framework, filling implementation gaps, strengthening capacity and fostering societal support will help to achieve them.

Significant steps are being taken to improve energy security and reduce reliance on Russian imports. To address short-term energy security concerns related to the coal phase-out, legislation now allows temporary operation of coal plants in case of shortages, and a capacity mechanism is being developed to attract investment in new dispatchable generation. Government interventions should be targeted and temporary, and low-carbon alternatives should be prioritised to avoid overreliance on natural gas, which would result in fossil fuel lock-in. To avoid this lock-in, Czechia is on course to further develop renewable and low-carbon gases, which can be potentially used in the same infrastructure as natural gas. In the first half of 2025, Czechia stopped importing oil from the Russian Federation for the first time, instead importing from alternative suppliers, including liquefied natural gas (LNG) markets. Supplies of nuclear fuel are also being diversified. Two-way cross‑border links are important for electricity supply security, as Czechia may become a net electricity importer before 2030. As coal is rapidly phased out, the substantial challenges in maintaining adequate electricity and heat supply, particularly in winter, require proactive and urgent policy action.

Czechia is doubling down on nuclear: extending the life of existing plants, building new large units and advancing plans for small modular reactors (SMRs). If delivered on schedule, this three-pronged strategy can provide a stable backbone of low-carbon power through mid-century, as well as new job opportunities. Currently, two nuclear power plants account for around 40% of electricity supply, and a contract has been signed to construct two new large reactors (with an option for two more). Czechia’s SMR Roadmap envisions up to 3 gigawatts (GW) of capacity by 2050, including as a potential provider of district heating (DH). Maintaining transparency, ensuring rigorous safety oversight and managing long-term waste effectively will help preserve the high levels of public support for nuclear.

Scaling up renewables and enhancing system flexibility are critical to phasing out coal, meeting climate targets and ensuring energy security. Renewable deployment has accelerated in recent years, led by rooftop solar photovoltaics (PV), but wind and utility-scale solar are lagging due to permitting delays, local opposition, retroactive policy changes and grid connection issues. Commendable reforms are now streamlining project approvals and enabling community investment schemes. To build on this progress, Czechia should consider setting binding renewables targets, publishing an auction schedule that is easily accessible on Czech and international platforms, improving conditions for corporate power purchase agreements (PPAs) and reducing grid connection queues. Recognising the importance of grids and system flexibility, significant investments are being made to modernise transmission and distribution networks. Legislation now recognises energy storage and aggregation, and Czechia aims to deploy at least 2 million smart meters by 2030. High electricity prices help make the case for demand-side flexibility, as well as for policy action to level the playing field and protect the most vulnerable consumers. Czechia should push ahead with smart meter deployment, promote dynamic pricing and ensure that all consumers can benefit from flexibility services.

District heating plays a central role in Czechia’s energy transition. Serving over 40% of the population, this sector is heavily reliant on coal and faces short-term supply risks. The sector can play an essential role in the energy transition by enabling efficient use of low-carbon sources and waste while supporting electricity grid stability. The regulator and government have introduced important regulatory reforms and investment support to help decarbonise DH and improve its competitiveness. Further action is needed to incentivise low-carbon fuels, waste heat recovery and utility-scale heat pumps, and to enable long-term financing of such investments. This must be accompanied by actions to boost end-use energy efficiency.

Decarbonising heat in buildings is a major challenge and a vital opportunity. Czech buildings are relatively energy intensive, with high heating demand, which offers significant potential to cut energy losses, lower bills and reduce emissions. The Long‑Term Building Renovation Strategy envisages a significant decline in energy consumption, supported by subsidy programmes like New Green Savings (NZÚ), which help reduce energy losses and phase out the dirtiest boilers. Better-targeted support such as higher subsidies and tailored financial products is needed for multi-family buildings and low-income households. While sustained investment is required, it will result in more comfortable and healthier living conditions with low-carbon, lower cost heating.

Energy use and emissions are still rising in transport, primarily due to high reliance on oil and slow adoption of alternatives. Less than 1% of cars are electric vehicles (EVs), but sales are accelerating, and charging infrastructure is rapidly expanding thanks to government support. Czechia’s auto industry is pivoting towards EVs, but stronger policies – such as fleet mandates, tax reforms and tighter measures on old vehicles – are needed to boost sales and meet goals. Support should primarily target corporate fleets, which make up 75% of new registrations, and public sector fleets, which can set an example for others. In addition to supporting EVs, a concerted policy push is needed to encourage a shift towards cleaner transport modes, including


well‑developed public transport, and to reduce transport needs. A combination of measures will result in lower oil import bills, cleaner air, and an EV industry that drives jobs and growth.

Czechia’s energy transition is as much social as technological. Its success will depend on supporting coal miners and other affected workers, involving citizens in charting the path forward, and ensuring that energy remains affordable for all. The RE:START strategy, the Territorial Just Transition Plan and the European Union (EU)-funded Just Transition Programme provide support to coal regions for reskilling, business development and land rehabilitation, though more local capacity building is needed. Public acceptance of climate policies can be improved using citizens’ assemblies and ensuring that communities benefit. Affordability strategies to protect vulnerable citizens should include efficiency upgrades and targeted subsidies. With the elements of a just transition largely in place, effective policy delivery will be key to ensuring that Czechia’s energy future is fair.