Implementation of EC Directives

Country

Czech Republic

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

1

ACT No. 180/2005 Coll. on the promotion of electricity production from renewable energy sources

Act

state

In force

Quotations from the measure

Article 1

Object of regulation

The object and purpose of the Act is determined. It has moreless a declarative sense and it is something as a preambule of the whole Act. Paragraph 1 however includes also one of the key statements of the Act, because in the § 1, subpar. 2, there is in point d) stated, that the purpose of the Act is «to create conditions for fulfilment of the indicative target for the share of electricity from renewable sources in the gross consumption of electricity in the Czech Republic amounting to 8 % in 2010, and for further increase of this share after 2010.» This statement determines the purpose of the Act not only proclamatively and also quantitatively.

The aim 8 % is a basic input for setting the purchase price level and bonuses under the § 6. For that reason it is very important. The Czech Republic has committed to meet this target (8 %) in the frame of EU access agreement.

Article 2

States basic terms used in the wording of the Act, eg. „Renewable sources“, “biomass”, “electricity from renewable sources”, “gross consumption of electricity”,“green bonus” and “operator of the regional grid system”.

RES definition results from the wording of the Directive. The RES definition is only constrict by leaving out RES, that are not relevant in the conditions of the Czech Republic (tide and wave energy. The matter is a definition of RES as such and not to definite RES exclusively determined for electricity production. From this reason it is possible to consider the RES definition as a general one and if there is in the future for example by another legislative regulation stated some support of heat production from RES, this definition can be also related to that support.

The biomass definition is also undertaken from the Directive. The „product“ is an important term, of which the fundamental criteria for recognition is „biodegradability“, that can determine an ability of an organic substance to be subject of biological degradability affected by microorganisms. Products can only arise out of agriculture, forestry and related industrial branches. Single kinds of biomass, which are a subject of support, are determined by the Ministry of the Environment Decree No. 482/2005 Coll., on Setting the Kinds, Uses, and Parameters of Biomass in the Support of Electricity Generation from Biomass.

Non sorted municipal and industrial wastes are not biomass in the sense of this definition.

To the definition of the term „electricity from RES“ it is necessary to mention, that the installation in the sense of this definition shall mean a production plant for RES conversion on electricity. For electricity production from biomass there could be took into account with the view of fuel source basically 3 possibilities – the production plant burns exclusively biomass, – the production plant burns biomass and fossil fuel in one fire chamber (co-burning); – the production plant burns in one fire chamber biomass and in other one fossil fuel and the getting energy carrier (for ex. Steam) from both fire chambers flows into one common installation (for ex. Into a turbine).

The term „green bonus“ is one of the key terms of the Act. The bonus means an extra pay to the electricity market price. The market price means an average electricity price from RES, for which the electricity producers sole electricity produced from the given RES on the market. The market price depends among others on quality of the electricity. The total income of the electricity producer from RES, which will get support from the regime of green bonuses, would be a sum of the electricity market price and the price of the green bonus.

The level of the green bonus states in accordance with the § 6 the ERO. The green bonus will be stated in advance for the next calendar year, for that reason it is necessary to come out from an expected average electricity market price of the next year from RES and also of the system regulating electricity from convention plants.

Paragraf 3

States the subject of support. Subpar. 1 states that the subject of support is only electricity from OZE produced in installations located in the Czech Republic. The Ministry of the Environment Decree No. 482/2005 Coll., states, which kinds of biomass and which ways of electricity production are subjects of support in accordance of this Act.

The statement of the subpar. 2 results from the fundamental principle of the Act, that is differentiation of the support for the electricity production from different kind of RES. This is based on different operational and specific investment costs of this electricity production.

The purpose of the statement of subpar. 3 it is, that the promotion is stipulated differently for power plants, which are operated exclusively on biomass and on the other side for power plants, in which biomass and fossil fuel is burn in combined incineration in one fire chamber. For the purpose of combined incineration of biomass and fossil fuels the electricity obtained from purposefully grown plants has got economy advantage. It means in practice, that in a case of combined incineration the higher support would get electricity from purposefully grown plants and lower once electricity obtained from «waste biomass» (saw dust for ex.) – this means differentiation along the kind of biomass. At the same time however the electricity obtained from the exclusively or parally incinerated waste biomass will get the higher support than the electricity obtained from combined incineration of waste biomass – this means differentiation along the kind of installation.

Article 4

States the rights and obligations of the entities on the market in electricity from renewable sources.

The basic obligation from the view of electricity producer from RES is, that the operator of the transmission system or the operators of the grid systems shall be obliged, within the area delimited in their license²), to preferentially connect to the transmission system or to the grid systems producers of RES electricity.

The producer, that produces electricity from RES and applies the claim for green bonuses payment, is obliged to make a contract on electricity delivery with another subject active on the electricity market. The right for green bonus payment covers also the producer, that produces electricity from RES for the own consumption. The duty to pay for the green bonus to this producer arises also for the regional distribution grid operator, on whose area delimited in their license the production plants is situated.

Article 5

States conditions for promotion, purchase and recording of electricity production from renewable energy sources. Subpar. 2 states, that the basic time period for evaluation of and accounting for purchase of electricity from renewable sources shall be 1 month. The producer reports the measured or calculated data on the actual amount of electricity produced by him from individual types of renewable sources to the operator of the regional grid system or to the operator of the transmission system. Upon fulfilment of this duty, the producer shall acquire the right to payment of green bonus.

Article 6

The subarticle 1 states the principles for determine the purchase prices and green bonuses for electricity from renewable sources. By this the process of the pricing is differentiated. For the first time the purchase price and green bonus price have been stated in accordance with the Act by the ERO for the year 2006.

The imput for the purchase prices statement are the measures of subarticle 1, point b). The fundamental role, that need not be neglected, is the fifteen-year period of recovery of investment.

The purchase prices and green bonuses will be further revised by taking into account another role that need not be neglected, what is the statement of the Article 6, subarticle 1, point a), that is the commitment of the indicative target fulfilment for the share of electricity production from renewable sources in the gross consumption of electricity, which equals to 8 % in 2010.

Another supplemental role for the purchase prices statement is the measure of the Article 6, subarticle 4, that states the maximal limit for the inter-years decrease of the purchase prices levels, that may be 5 %.

Joint provisions, eg. § 8 - § 12

cover the administrative torts. To perform control, fines impose, collection and exaction belong under the responsibility of the State Energy Inspection, the authority established in accordance with the Energy Act. Further there are in the Section III involved transitional provisions and authorisation - to perform control, fines impose, collection and exaction belong under the responsibility of the State Energy Inspection.

The Ministry of Industry and Trade and ERO is authorised to

issue implementing regulations.

The Purpose of the measure

The measure should

• increase the share of electricity production of renewable sources in gross electricity consumption in such an extent to fulfil the Czech Republic indicative target 8 % in 2010;
• contribute by an appropriate reduction of GHG emissions to the protection of the climate;
• contribute by an appropriate reduction of other pollutants to the protection of the environment;
• contribute to an increase of diversification and decentralisation of energy sources and with it to an increase of energy supply security
• contribute to an increase of business security of investments into RES.

Legislative measure is a part of implementation of the Directive 2001/77/EC.

Impact of Measure

DH deals only with biomass and for the present above all in the form of wood chips. The measure will lead to the reduction of the fossil fuels consumption. It is quantitatively limited by the disposable amount of appropriate biomass. This potential depletation can be expected already during the next few years (concerns the wood chips).

Another potential means the use of especially waste biomass from agriculture, eg. Hay and straw.

Effectiveness of the measure

This act has sharply accelerated the use of RES for electricity production, unfortunately above all in the process of condensing electricity production, eg. Without heat supply.

There has been at present time started works on an amendment of this Act. Some new elements should be implemented resulted from the amended Directive 2009/28/EC, especially the support of heat production from RES.

Monitoring of, & Input to National Renewable Energy Action Plans

The amount of electricity production from RES is monitored by the ERO and MIT.

The supporting schemas are gradually renewed in a form of green bonuses to the premiums to electricity production.

There is in the Czech Republic elaborated the Action plan only for biomass utilisation, other action plans are under the process of elaboration.

Proposed Implementing Measures

An amendment of the Act on the support for RES electricity production (Act 180/2005 Coll.) is under work. In this amendment should be implemented new elements resulted from the Directive 2008/28/EC.

IV. Implementation of EC RES Directive

Country

Czech Republic

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

2

Decree No. 482/2005 Coll., on Setting the Kinds, Uses, and Parameters of Biomass in the Support of Electricity Generation from Biomass

Decree

MEnvi

In force

Quotations from the measure

Article 1 Subject of the Decree

The Decree sets the kinds and uses of biomass, which are from the view of the environment protection covered by the supporting schema with accordance of the Act. The Decree also sets Parameters of Biomass, along with the categories of biomass are stated with differentiated support for electricity production.

Article 2 Terms and Definitions

For the purpose of this Decree, the following terms shall be deemed to have the following meaning:

a) Biologically degradable material – material succumbing to biologic anaerobic or aerobic

decomposition, subject to conditions naturally occurring in the biosphere;

b) Biologically degradable part of sorted industrial and municipal waste – separate, biologically

degradable components sorted out of municipal or industrial waste or originating from separate

collection;

c) Bio fuel – fuel made out of biomass;

d) Uses of biomass – single-level and multi-level technological power generation processes;

e) Anaerobic fermentation – process of controlled decay of biomass into biogas and digestion part, that goes without access of air oxygen.

f) Gasification - a thermic process or similar physical or chemical process of biomass conversion on synthesis gas

g) Combined incineration – the incineration of biomass and a non-renewable source of energy, except

for cases when the generation of electricity from biomass is only possible through the ignition of a

required amount of a fuel other than biomass, and when all of the electricity thus generated is

considered to be electricity generated from biomass, for the purpose of electricity generation or for

the purpose of combined generation of electricity and heat.

h) Mechanical-biological treatment – the treatment of mixed municipal waste and industrial waste that

is similar in nature and composition to municipal waste, consisting of the combination of

mechanical and other physical processes, such as disintegration and sorting, with biological

processes, such as, for example, rotting and fermentation, to the separation of certain

components contained in that waste and their biological stabilisation.

Article 3 - Kinds of Biomass Subject to Support

With regard to the fact, that at specific conditions the subject of support shall be all kinds of biomass, which is not excluded from the support, there is set by Appendix 1 to this Decree a survay od biomass, that is necessary to be understood as if possible a complex survay in the frame of present available knowledge. Biomass means the herbal and carnal materials and also fuels made from them.

Appendix 2

Set a list of potentially risky plants from the view of environment protection and excludes for thet reason these plants from the support with an exception of the case, when these plants are liquidated.

Article 4 Parameters of Biomass on the Basis of which Different Support is Determined

Categorisation of biomass is provided along the parameters, which are determined by this Decree. The fundamental parameter is heating power (caloric value) and costs (quantitative parameters), a supplemented parameter is the benefit for the sustainable development (qualitative parameter).

In the case of combined incineration of biomass and fossil fuels the electricity produced from biomass with the caloric value lower than 5 MJ/kg is not the subject of support; in other methodes of biomass direct incineration the lowest average heating power (daily average) is 7 MJ/kg of the incinerated biomass;

The reason is that the incineration of biomass with such a low heating power is noneffective.

Article 5 Uses of Biomass Subject to Support

In the paragraph 5 there are generally mentioned uses of biomass, which are Subject to Support regardless what biomass is in these installations use for energy purposes.

In § 5 there are further determinated technologies, the use of them or electricity production is the subject of support along the low. It deals in fact with all basic technologies available for electricity production from biomass.

Along the low it is not possible to consider as biomass the mixtures incinerated in specialised installations - such as waste incineration plants. Waste incineration plants are excluded from the support along the low. The reason is among others that the support is ensured by another measure.

The Purpose of the measure

To support heat and electricity production from RES – biomass. For the CHP/DH sector it means mainly incineration of wood chips. The purpose is to decrease fossil fuels consumption and subsequently also CO2 emissions production.

The target group is the state (Czech Republic).

Legislative measure is a part implementation of the Directive 2009/28/EC (previously 2001/77/EC).

Impact of Measure

Effectiveness of the measure

The measure is effective, it specifies the roles for RES utilisation in energy sector.

Monitoring of, & Input to National Renewable Energy Action Plans

Proposed Implementing Measures

IV. Implementation of EC RES Directive

Country

Czech Republic

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

3

Decree 502/2005 Coll., about determination of methods of presenting of amounts electric energy produced during common combustion of biomass and non-renewable source.

Decree

ERO

In force

Quotations from the measure

§ 3For the purposes of the presenting of amounts electric energy at the combined incineration of biomass and fossil fuels there are parameters stated, that indication, description and the methode of determination are adjusted in the Annex 1 of this Decree.
§ 4If the amount of electricity from RES produced in combined incineration of biomass and non-renewable energy source is presented for the purpose to claim the support by green bonuses along the § 4 subpar. 7 of the Act on support RES, the data have been reported about the real amount of energy produced while burning biomass and non-renewable source jointly, as well as those about the quality and real use of the energy amount contained in the non-renewable resource and in biomass for the purpose of energy production, and a summarized energy balance in a monthly report a sample of which is adjusted in Appendix 2 to the Directive. A sample monthly report of energy production from the source joint burning biomass and non-renewable resource is provided by the Energy Regulation Office in a way enabling a remote access.

The Purpose of the measure

To support renewable energy sources production. Heating industry mainly concerns the biomass burning. The purpose is to reduce fossil fuels consumption and consequently CO2 emissions. The measure is an integral part of the state energy policy and of the EU objectives.

The legislation measures are a part of the EU Directive N. 2009/28/EC (formerly 2001/77/EC).

Impact of Measure

The Directive is compiled in a way to suit not only a simple boiler installation scheme but also more complex schemes that may appear in a real operation.

Reports are filled on a monthly basis for a group of boilers and turbo-generators connected to a common steam bus.

The amount of energy contained in biomass and in ne-renewable resources in their joint burning is determined on the basis of a pre-defined methodology reflecting particular technology specifics, as well as the used biomass form giving a detailed way of sampling and measuring of the used fuel consumption, their heating power and water contents.

Calculation of the produced energy amount at joint burning of biomass and non-renewable source, that links directly to the amount of the subsidy, is designed in the following way: combined heat and energy production prefers the biomass-produced heat thus eliminating a disadvantaged CHP in a situation, when the law supports only the production of electric energy, not the production of heat.

Similar procedure is used in combined and parallel burning where the heat made by parallel burning is primarily calculated. This presents a pure biomass burning in one boiler free from non-renewable sources addition.

Effectiveness of the measure

The measure meets its purpose.

The Directive in a certain aspect equalizes the position of CHP in comparison with a purely power-plant-type operation with no heat off-take, settling the business conditions on the market non-deformed by a single-sided support to a mere electric energy production, not supporting the RES produced heat.

Monitoring of, & Input to National Renewable Energy Action Plans

Proposed Implementing Measures

IV. Implementation of EC RES Directive

Country

Czech Republic

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

4

The Price Decision made by ERO is published annually to determine the subsidy to renewable energy sources.

Decree

ERO

In force

Quotations from the measure

The Price Decision is published annually; it is published by ERO in advance (before the beginning of the appropriate calendar year) in the Energy Regulation Bulletin on the ERO website.

Purchase prices and green bonuses have bee determined for the following RES categories:

- Small water power plants (SWPs up to 10 MW)

- Top and semi-top SWPs (up to 10 MW)

- Biomass per a type

- Biogas, landfill gas and firedamp

- Wind power plants

- Geothermal power stations

- Solar power stations

- CHP – resources of up to 1 MW (inclusive).

- CHP – resources from 1 MW to 5 MW (inclusive)

- CHP – resources of over 5 MW

- CHP with the use of renewable energy sources or degasification

- CHP with the use of secondary energy sources

All RES and CHP energy producing methods are eligible for the support. Bonuses to the energy purchase price are defined. The bonuses are allocated in the amount providing for the highest effectiveness of the equipment installations and energy production.

The Purpose of the measure

All CHP methods of energy production have been supported in a differentiated way.

The support is paid in the form of an additional fee to the market price for electric energy.

The amount of the subsidy for small resources is annually changed depending on the development of energy market price.

Impact of Measure

The problem is a correct purchase price and green bonuses determination, i.e. the amount of the subsidy. In certain situations this results in an enormous development of such equipment (e.g. photovoltaic), which results in the impossibility to connect to the distribution network, or to the instability of the distribution system.

Effectiveness of the measure

The measure meets its purpose partially (see previous table).

Monitoring of, & Input to National Renewable Energy Action Plans

Proposed Implementing Measures

IV. Implementation of EC Directive 2008/1/EC - IPPC

Country

Czech Republic

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

1

ACT No. 76/ 2002 Coll.

on integrated pollution prevention and control, on the integrated pollution register and

on amendment to some laws (the Act on integrated prevention)

Act

state

In force

Quotations from the measure

(1) The purpose of this Act is, in accord with the legislation of the European Communities), to achieve ahigh level of protection of the environment as a whole), to provide for integrated implementation of the public administration in permitting the operation of installations and to create and operate an integrated pollution register.

(2) This Act

§ 14 The Manner of Laying Down Binding Conditions of Operation

(1) The Authority shall lay down emission limits for pollutants specified in Annex No. 2 to this Act, if these are emitted from the installation, and other emission limits which are laid down on the basis of other regulations6). The Authority may also lay down emission limits for other groups or categories of pollutants, vibrations, noise, heat or other forms of non-ionizing radiation.

(2) The emission limits for substances, vibrations, noise, heat or other forms of non-ionizing radiation shall normally apply to the place where the emissions leave the installation. In case of discharging waste water into the sewer system, in setting the emission limit for the relevant installation, the Authority may take into account the cleaning effect of the waste water treatment plant under the assumption that an equal level of environmental protection as a whole is ensured2) and that this does not lead to a higher level of environmental pollution.

(3) In setting the binding conditions of operation, in particular the emission limits, the Authority shall base its considerations on the use of the best available technique on the basis of the aspects set forth in Annex No. 3 to this Act, taking into account the technical characteristics of the installation, its location and local environmental conditions, however, without prescribing the use of one specific technique or specific technology. The emission limits thus set must not be less strict than the emission limits that would otherwise be laid down pursuant to the special regulations6).

(4) The Authority may lay down exemptions from the emission limits for a period of a maximum of six months if the operator of the installation plans to carry out measures leading to a decrease of the pollution in this given period (e.g., bringing the installation into operation, short-term interruption or definitive termination of operation of the installation).

The Purpose of the measure

The measure covers in the energy sector installations with the heat load over 50 MW.

The aim is to give way of such installations that meet the stated conditions in emissions emitation into the air. At the same time parameters of installations are controlled to meet the BAT conditions.

Impact of Measure

Legislative provision influence all the larger DH systems, positive effects are predominant.

Effectiveness of the measure

Legislative provision is effective.

At present time an amendment of the Act on IPPC is under elaboration. A question is under discussions/disputes dealing with a possibility judicially to attack the results subsequently even after their approval.

Heat losses?

Existing legislation influence heat losses only in the production process (boilers efficiency), however not in the subsequent distribution to the consumers.