Energy Policies of IEA Countries: Czech Republic 2016 Review

The Czech Republic recently approved a new National Energy Policy (SEP) that aims to reduce energy consumption and improve the economy’s energy intensity. This IEA country review provides a snapshot of the energy sector in the Czech Republic and examines the impact of the SEP. The review warns that reaching long-term energy targets will require greater effort if the country is to play its part in the on-going global energy transition. The SEP broadly seeks to strengthen security of energy supply and build a competitive and sustainable energy sector. While the Czech Republic has experienced strong growth in the renewable energy sector – notably solar PV – policy changes have created uncertainty. Meanwhile, greenhouse gas emissions, which have been falling since 2000, are expected to increase. Coal dominates the power sector and is the largest source of carbon emissions and also poses a substantial threat to local air quality. The review finds that natural gas supply security remains strong, and the country is expected to remain a net exporter of electricity. The expansion of nuclear power is one of the main pillars of the SEP, and will play a greater role in coming years. The SEP also establishes key targets for energy security, emissions, energy savings, electricity generation and affordability. This review also provides recommendations for further policy improvements that are intended to help guide the country towards a more secure and sustainable energy future.