Overview of National DHC Market

Overview of National DHC Market

Country

Czech Republic

Summary of the National DH market

CHP/DH sector has a long tradition in the CR and from the history of the sector there are many positive results, on the other side the DH sector is facing some new challenges and also urgent needs to keep the position on the market, to overcome some features of our DH systems (by refurbishment) and ensure the further development.

In the CR there are over 1.55 mio. households, it means 41% of Czech households supplied with DH. The ADH CR members operate DH systems in all of the largest 21 Czech cities (over 50 thousands inhabitants). In these cities we provide DH supply for 73 % households, this accounts about 3.340 mio inhabitants. In average the DH share in urban areas reached 56.8 % and in rural areas 9.7 %.

A very large share of Czech DH sector is concentrated under ownership of only several DH companies. The largest 10 DH companies together supply with DH over 1.025 mio flats. The municipality owned companies operate usually a large DH system in their locality (supplied area), Prague DH comp. Is the largest example with 265 thousand of supplied households (62 km long DH feeder from Melnik I power plant to Prague). Another approach could be seen at foreign investments owned DH companies. They usually operate (buy o rent) DH systems in more cities, supplied areas. From this view Dalkia CR is the largest DH company with total number 265 850 of DH supplied flats in 14 cities.

In the CR there is annually produced 400 PJ heat (excluding heat for electricity production; process heat + heating purposes included), of which 156 PJ/a (it means 39 %) is produced in power plants (with heat extraction) and CHP plants; this heat production is used for auto-consumption and DH supply. In heating plants is produced 64 PJ/a (16 %) heat for centralized (DH supply). In local boilers is produced about 180 PJ/a (it means 45 % in decentralized production, house boilers and individual heating).

From the ERO statistics the structure of installed heat load for heat supply results as follows: 50.6% in CHP plants and 14 % in power plants (with heat extraction); 17 % in heat only boiler plants and 12 % in block boiler houses.

The further parts devoted to the legislation and other measures with the influence on DH will provide more information about the Czech DH sector nature, position and related conditions.

A brief summary: DH in CR is considered as local monopoly, business and public service; heat prices are regulated; fuel inputs are not regulated; DH is under the reduced VAT 10 % (other energies 20 %), eco-tax is differentiated along the efficiency, eco-tax exempts fuels for CHP and natural gas for DH and heat sources up to 50 kW; Natural gas tariffs for large and middle consumers are unfair (based on maximal peak consumption with the high resulting share of reserve capacity costs); SEP should ensure fuels for CHP/DH (break the coal mines limits; protect of the speculative price increase); CHP electricity should be more evaluated (price contribution), CHP heat should be treated similarly to RES; RES heat support should not be proposed on the account of DH consumers; RES – biomass potential is overestimated;