Czechia ranks among the top 20 countries in Europe in terms of energy storage capacity, with 1.19 GW operational across 11 projects and a small planned expansion of 0.01 GW. However, with the recent approval of an EU-backed aid plan, the country is set to double its capacity in the coming years.
The European Commission has given the green light to a 279 million euros (approximately CZK 7 billion) state aid scheme to encourage the development of new electricity storage facilities. This initiative is part of the EU’s broader effort to reduce fossil fuel dependency and enhance the integration of renewable energy into the grid.
“Energy storage is key to ensuring grid stability and facilitating the transition to a power system based on renewable sources,” the Commission stated in its official release.
Details of the Aid Scheme
The programme approved by the EU aims to fund the construction of at least 1,500 MWh of new energy storage capacity in Czechia. The scheme will operate under the following criteria:
- Aid will be granted through a competitive bidding process, open to all storage technologies connected to the transmission or distribution grid.
- Funding will cover up to 50% of eligible project costs.
- The aid must be awarded by 31 December 2025.
This support plan falls under the Modernisation Fund, a European financial mechanism designed to upgrade the energy infrastructure of EU Member States and align them with the bloc’s decarbonisation goals.
The Energy Storage Landscape in Czechia
The expansion of energy storage in Czechia is part of a broader transformation of its electricity system. According to data from the Czech Energy Storage Association (AKU-BAT CZ), the country has seen significant growth in renewable energy adoption and storage technologies.
In 2024, 44,633 new decentralised generation systems were connected, representing a 25% increase compared to the previous year. Additionally, the total number of sources connected to the Czech grid has quadrupled over the past three years, reaching 213,638 units.
“The development of storage is crucial for optimising grid stability, as renewable energy production is intermittent. We need more investment in storage infrastructure to ensure electricity supply and enhance system flexibility,” explains Jan Fousek, Director of AKU-BAT CZ.
Benefits and Challenges of the New Strategy
Boosting energy storage will allow Czechia to improve its energy security and reduce reliance on gas and coal imports, two key sources in its current energy mix. Moreover, it will facilitate the integration of solar and wind power into the grid without stability concerns.
However, the sector also faces challenges, such as lengthy regulatory approval processes and the high costs of implementing advanced technologies. In this regard, the EU aid scheme aims to incentivise private investment and accelerate the adoption of innovative solutions.
“Energy storage will not only help balance the grid but will also create opportunities for developing flexibility markets and demand aggregation,” says Fousek.
Energy Decentralisation and Growth in Storage Needs
Czechia’s transition towards a decentralised energy model is gaining momentum. According to a report from the Czech Association of Regulated Energy Companies (ČSRES), the number of connected energy sources has quadrupled in the past three years, with the total installed capacity increasing by approximately 1 GW in 2024, equivalent to one unit of the Temelín Nuclear Power Plant.
The expansion of solar power has played a key role in this transformation. The installed capacity of solar photovoltaic (PV) plants has doubled since 2021, and the electricity surplus injected into the grid has tripled in the past two years. This shift is driving massive investments in grid modernisation, digitalisation, and energy storage solutions.
“The decentralisation of energy is underway, as shown by our statistics. The year 2024 was marked by an ongoing surge in new energy connections, a massive amount of necessary system upgrades, and record-high investments,” said Milan Hampl, Chairman of ČSRES.
As grid operators adapt to an increasing number of decentralised power sources, they face challenges such as intermittent renewable generation, regulatory barriers, and lengthy approval processes. The newly approved aid scheme seeks to address these hurdles by fostering the development of modern storage technologies that stabilise supply and demand.
Czechia in the European Context
With this new initiative, Czechia is strengthening its position in the European energy storage market. Currently, the country ranks among the top 20 nations in terms of installed capacity, although it still lags behind leaders such as Germany, Spain, and France.
The €279 million investment plan is a strategic step towards meeting the EU’s energy transition goals and reinforcing the country’s energy infrastructure by 2030.
The future of energy storage in Czechia will depend on the success of this aid scheme, as well as the country’s ability to attract investment and develop innovative technologies in the sector.
The European Commission’s announcement:
0 Comments