Czech Finance Minister Zbynek Stanjura is advocating for changes in the country’s support system for renewable energy sources. The current structure, in which households and businesses pay nothing for supporting renewable energy, is deemed unsustainable. Stanjura aims to balance the distribution of payments more equitably between these two sectors.

At present, the Ministry of Finance is reviewing the total payments allocated for supporting renewable energy sources and is seeking ways to reduce the financial burden on taxpayers. One option under consideration is amending the law to potentially limit the subsidies provided.

Since 2006, the Czech Republic has spent over CZK 500 billion to support renewable energy sources. Historically, these payments were shared between the government and consumers through their electricity bills. However, this year, the government fully covered these costs due to high energy prices.

Stanjura acknowledges the need for a sustainable solution that fairly distributes the financial responsibility for supporting renewable energy sources. He believes that the current practice of the government fully covering costs cannot be maintained indefinitely. The proposed solution involves a renewed distribution of contributions among the government, households, and businesses. However, Stanjura is open to modifying the distribution strategy, as the present one favors households.

This initiative is part of a broader effort by the Ministry of Finance to ease the financial burden on taxpayers. Stanjura points out that over the past three years, businesses rather than the government have been primarily funding renewable energy sources. This level of support is unsustainable and must be reduced or phased out.

Although the government chose to fully subsidize renewable energy support this year due to high energy prices, this measure will not be extended into the following year. The anticipated conclusion of the government’s subsidy for renewable energy coincides with the expiration of the government-set energy price cap next year.

While the specifics of the proposed changes are still being formulated, it’s evident that reform of the current renewable energy support system in the Czech Republic is necessary. Stanjura’s proposals strive to create a more balanced distribution of payments and alleviate the financial strain on taxpayers.

Article by Prague Forum