Eva Ponikelská (Böhm & partner a.s.)
Finance  |  September 16, 2010 09:38:41

CEZ: The government approved an amendment to end support for solar power

The government has approved an amendment to the promotion of renewable resources to end support for solar power plants built on loose surfaces. The proposal must be approved by Parliament and the Senate and subsequently signed by the president. According to information servers should be followed up. From previous reports (media) and subjective calculations of experts for the next year expects a potential rise in electricity prices of around 15% for households and about 25% for businesses. Final decision on electricity prices would probably announce an energy regulator at the end of November. Stopping or modifying subsidies solar project is expected move, which the government intends to reduce electricity price increases.

Bohumil Trampota

Investors in solar power plants currently doing everything possible to make
most sources involved in the network before the end of December so that they were entitled to
current year funding. We can assume that many sources will actually finišovat until just before the end of the year. According to estimates, is now involved about 700 MW of solar power plants by the end of this number may increase according to our estimates, about 1 to 1.3 GW (market estimates range from 0.8 to 2 GW). Most of the measures that the amendment contains no surprises for the market and are broadly in line with what the government and experts have claimed in previous months. It is clear that the solar boom next year slows down considerably,
will be practically supported small projects (solar power plants on roofs, etc.). Regarding the impact of this boom in the prices of electricity, depending on ojemu really connected sources estimate the total increase in electricity prices for households in the next year between 5-15%.

From March next year at a subsidized price will only buy a maximum energy of 30 kWh solar power sources installed on buildings. In addition, plants would have to be connected to the network and therefore will not only generate electricity in a closed circuit. The purchase price would be reduced by more than half to 6 thousand. CZK per MWh. (HN)

This report should not have an impact on CEZ, as it will be able to connect most of its solar projects by the end of 2010 (ie still under the original parameters).

Vaclav Kmínek

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