Czech Republic Power Market Size and Trends by Installed Capacity, Generation, Transmission, Distribution, and Technology, Regulations, Key Players and Forecast, 2021-2030

This report discusses the power market structure of the Czech Republic and provides historical and forecast numbers for capacity, generation, and consumption up to 2030. Detailed analysis of the country’s power market regulatory structure, competitive landscape, and a list of major power plants are provided. The report also gives a snapshot of the power sector in the country on broad parameters of macroeconomics, supply security, generation infrastructure, transmission and distribution infrastructure, electricity import and export scenario, degree of competition, regulatory scenario, and future potential. An analysis of the deals in the country’s power sector is also included in the report.

Czech Republic power market overview

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Thermal power will continue to dominate annual generation in the Czech Republic by 2030

In 2020, thermal power constituted a share of more than 45% in total annual generation in the Czech Republic. Although this share is expected to decline by 2030, thermal power will continue to dominate the annual generation in the country. Although the government is planning to phase out coal power in 2030s, no clear plans and roadmaps have been made for the same. The country is heavily dependent on coal power generation to meet the electricity demand and its rapid phase out can threaten the country’s energy security. Power utilities in the country are planning to gradually move away from thermal power generation in coming years. In May 2021, the Czech utility ČEZ announced that it will cut the proportion of electricity it produces by coal from 39% to 12.5% by 2030. Another major factor for the dominance of thermal power in the Czech Republic’s power mix is the slow adoption of renewable power sources for electricity generation.

How is the Czech Republic power market structured?

The Ministry of Industry and Trade is responsible for framing policies for the electricity sector. The Ministry has a separate energy division that looks after the power sector in the country. The Energy Regulatory Office (ERU) is one of the major central authorities in the Czech Republic energy market. It is responsible for energy regulation in the Czech Republic. The ERU also monitors market compliance with the provisions of The Energy Act to protect customers’ interests in business activities in the electricity and gas sectors. It is also responsible for price determination, regulating T&D segments, and preparing strategies for the power market.

Who are the key players in the Czech Republic power market?

The power generation segment in the country is dominated by CEZ AS, Energeticky a Prumyslovy Holding AS, Sev.en Energy AG, and Sokolovska uhelna, pravni nastupce, A.S. CEPS is a state-owned company and the sole electricity transmission network operator in the Czech Republic. It is responsible for all transmission-related activities, including providing transmission services, operating the grid network, maintaining, and developing the network infrastructure, and connecting power plants to the grid. The distribution and supply network in the Czech Republic is dominated by three companies namely CEZ Distribuce, E.ON Distribuce and PRE Distribuce (subsidiaries of CEZ Group, E.ON Group, and PRE Group, respectively). Due to market liberalization, several small independent distributors have also started distributing power. These distributors buy their power from small power producers or import from other countries.

The Czech Republic power market, by key players

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Where are the opportunities in the Czech Republic power market?

The opportunities in the power sector lie in power generation, transmission, and smart metering. Specific areas that appear promising from an investment point of view are gas-based power plants, turbines, and associated equipment. The government has also declared its support for nuclear power, and there is a good deal of competition among companies from the US, France, and Russia for lucrative contracts in this sector. What makes this sector particularly attractive is that many countries worldwide have turned their back on nuclear power after Chernobyl and Fukushima disasters. The select few countries that still tend to support nuclear power, therefore, offer a niche market for investment.

What are the challenges faced by the Czech Republic power market?

Low demand for power accentuated by the reduced performance of the industrial sector has also led to lower sales, affecting the profitability of the leading utilities. Uncertainty regarding power sector regulations in the EU concerning carbon emissions has also held up investment decisions in the power sector.

How has COVID-19 affected the Czech Republic power market?

The Czech Republic was significantly impacted due to the COVID-19 pandemic in 2020. To curb the spread of COVID-19, the government imposed strict national curfews in the country. Majority of the sectors in the country were affected due to these curfews; however, tourism and hospitality sector was the most badly affected.

With respect to power sector, the electricity consumption in the country declined by more than 3% in 2020 as compared to 2019. Electricity demand from industrial and commercial sectors declined significantly due to national curfews. Also, lockdown measures and the spread of the virus caused uncertainty in coal supply. For instance, a coal mine in north-eastern the Czech Republic near the border with Poland halted work after a major COVID-19 outbreak among the miners. This resulted in a steep decline of more than 20% in coal production in 2020 as compared to 2019 which, in turn, led to a decline in coal power generation.

Market report scope

This report provides a comprehensive analysis of the power market in the Czech Republic and contains the following sections:

• The executive summary captures the key trends in the country’s power market.
• “The Czech Republic Power Market, Snapshot” section provides a snapshot of the key parameters that affect the country’s power sector, as well as key points about the country’s power market including opportunities, challenges, and the impact of COVID-19.
• “The Czech Republic Power Market, Market Analysis” section provides the market structure, generation market share, deals, and demand structure.
• “The Czech Republic Power Market, Regulatory Scenario” section details the regulations and policies in the country’s power sector.
• “The Czech Republic Power Market, Capacity and Generation” section provides information on cumulative installed capacity and annual generation trends, by individual generation source.
• “The Czech Republic Power Market, Transmission and Distribution Overview” section discusses the power T&D infrastructure, electricity import and export, grid interconnections, and electricity trading.
• “The Czech Republic Power Market, Major Generating Companies” section discusses the major electricity generating companies in the country.

Reasons to Buy

• Identify opportunities and plan strategies by having a strong understanding of the investment opportunities in the country’s power sector
• Identify key factors driving investment opportunities in the country’s power sector
• Facilitate decision-making based on strong historic and forecast data.
• Develop strategies based on the latest regulatory events
• Position yourself to gain the maximum advantage of the industry’s growth potential
• Identify key partners and business development avenues
• Identify key strengths and weaknesses of important market participants
• Respond to your competitors’ business structure, strategy, and prospects