As we have already informed you on 29 April 2025, the State Environmental Fund (hereinafter referred to as “SEF“) published on 28 April 2025 new subsidy calls for support programmes aimed at supporting the production of electricity from renewable sources of electricity (hereinafter referred to as “RES“).

In connection with recent legislative developments and the adoption of the amendment to the Energy Act known as “LEX RES” III, provisions have been inserted into the Energy Act that explicitly regulate electricity storage facilities. However, in view of the developments of recent years and the considerable uncertainty prevailing in the electricity market, the Czech Republic is concerned that investors do not have sufficient incentive to build the necessary electricity storage capacities, which are crucial for the proper integration of RES into the electricity grid.

This is precisely the problem that the RES+ support programme No. 5/2025, which was notified by the Czech Republic to the European Commission on 13 February 2025 and approved by the European Commission on 7 March 2025, is intended to address, based on the provisions of the Temporary Crisis and Transition Framework.

The total budget of the support programme is set at CZK 7.000.000.000 with the beneficiaries to be selected in two auctions. Bidding in the first auction is already possible from 28 April 2025 to 2 June 2025. In the first round, support worth CZK 2.000.000.000 is expected to be granted from the total budget of the programme. The second round of auctions is expected to be held in September this year.

All enterprises are eligible to tender, which includes small and medium-sized enterprises (SMEs). However, they must operate in the NACE sectors of electricity, gas, steam and air conditioning.

The programme itself is technology-neutral, i.e. various technological solutions for electricity storage can participate, which includes, but is not limited to, pumped storage hydropower (PVE).

owever, the rules of the programme also set certain limits, where a project can be supported up to a maximum of 50% of the total amount competed in the auction. Furthermore, the support is limited to 20% of the expected cost of building the relevant electricity storage facility. Relevant costs include, for example, the cost of drawing up project documentation, the cost of constructing the facility or the cost of acquiring control systems.

Finally, it should also be mentioned that aid beneficiaries must commission the electricity storage facilities within 3 years of the aid being granted. If the facility in question does not start operations by that deadline, a penalty of 2,5 % of the total aid granted may be imposed on the aid recipient for each month of delay. The possibility of avoiding the penalty is provided for in the programme rules, but the beneficiary must prove that the facility has commenced operation within 4 years of the date of the aid grant and that an unforeseeable and insurmountable obstacle prevented the beneficiary from completing the project on time.

Just for the record, the bidding for the first auction will close on 2 June 2025. If you require assistance in considering whether to bid, please do not hesitate to contact us.

Further information can be found on the SEF website.

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