The Czech Republic notified the €420mn support scheme, which will benefit such CHPs commissioned from January 2016 until December 2020, to Brussels four months ago. It is financed by a combination of a surcharge levied on electricity consumers and contributions from the Czech state budget.

Under the scheme, operators of CHPs will receive a fixed premium on top of the market price of electricity; the premium will be updated on annual basis in relation to the main cost components to ensure costs to the state are kept to a minimum.

The commission recognised that the measure will help the Czechs achieve its 2020 environmental and climate change objectives, as efficient CHPs improve air quality, reduce carbon dioxide emissions, and because the scheme will benefit a range of different market players. Brussels has also lately approved support schemes for Czech renewable generation, hydropower plants, and small bio-gas installations. In October 2016, the commission also cleared German plans to support CHP projects. Germany and Czech Republic both remain highly reliant on coal for their power generation.

Mark Smedley