EU approves €279m state aid for BESS rollout in Czech Republic


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EU Funds Czech Republic's Energy Storage Expansion

The European Union has granted €279 million in state aid to the Czech Republic to support the deployment of battery energy storage systems (BESS). This funding comes from the Modernisation Fund and is approved under the EU's State Aid Temporary Crisis and Transition Framework (TCTF).

Key Features of the Funding

  • Open to all energy storage technologies directly connected to the transmission or distribution network.
  • Aims to reduce Czechia's dependence on fossil fuel imports, aligning with the EU's 2024-2029 decarbonisation goals.
  • Funds are distributed through a competitive auction process, covering up to 50% of eligible project costs.
  • The deadline for granting aid is December 31, 2025.

This initiative follows similar TCTF-funded energy storage projects in other Central and Eastern European countries, such as Hungary, Poland, and Slovenia. Other EU funding mechanisms, like the Recovery and Resilience Fund, have also supported storage projects in Bulgaria, Romania, Finland, and Greece.

Czech Republic's Energy Landscape

While Czechia is transitioning towards renewable energy, its energy sector currently relies heavily on traditional sources like coal, gas, and nuclear power. The country saw significant growth in solar power in 2023, with nearly 1GW of new capacity added.

Largest BESS Project

The largest BESS project in Czechia to date is a 30MW system integrated with a gas plant, operated by Decci Group.

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It will be open to all energy storage technologies that are directly connected to the transmission or distribution network, and will support the European Commission’s 2024-2029 decarbonisation goals by reducing the Czech state’s need for fossil fuel imports.

The funding comes from the Modernisation Fund and was approved under the EU’s State Aid Temporary Crisis and Transition Framework (TCTF), which uses bloc-wide funding to support economies in the context of Russia’s invasion of Ukraine in 2022.

The aid will be granted through a competitive auction process, is limited to 50% of projects’ eligible costs, and will be granted no later than 31 December 2025.

Alongside Czechia (often still called the Czech Republic), TCTF has been used to support energy storage in other major Central and Eastern Europe (CEE) economies including Hungary, Poland and Slovenia. Hungary’s scheme in particular was praised by multiple speakers on a panel at Solar Media’s Energy Storage Summit CEE 2024 in September last year.

Meanwhile, the EU’s separate Covid pandemic-related Recovery and Resilience fund has supported storage in Bulgaria, RomaniaFinland and Greece.

The largest BESS we’ve reported on in Czechia is a 30MW system co-located with a gas plant, put into operation in summer last year by independent power producer (IPP) Decci Group.

The country is still mostly powered by legacy power plants, including coal, gas and nuclear, but is increasing its renewables. Nearly 1GW of solar came online in 2023, driven by the residential segment, as reported by our colleagues at PV Tech.

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