The funding is expected to yield an annual C0₂ of approximately 9.3 million tonnes. Credit: Factory_Easy/Shutterstock.com.

The European Commission has approved a €3.2bn Czech state aid scheme to support electricity production from high-efficiency combined heat and power (CHP) plants.

The move aligns with the objectives of Czechia’s National Energy and Climate Plan and the broader European Green Deal.

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The scheme, set to run until the end of 2025, is part of Czechia’s strategy to meet its energy efficiency targets.

Operators of new or modernised CHP installations in the country that adhere to the high-efficiency cogeneration criteria of the Energy Efficiency Directive will be eligible for support.

Except for installations fuelled by oil, diesel or solid fossil fuels, the programme is available to any technology that enables the production of electricity from CHP plants with high efficiency.

Projects using natural gas must commit to transitioning to renewable or low-carbon gases by 2050 to avoid the risk of long-term reliance.

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Beneficiaries will receive a feed-in premium for each megawatt-hour of electricity produced over 15 years.

The premium amount is determined through tenders, except for small installations, where it is administratively set by the Czech Energy Regulatory Office and capped at the funding gap.

The initiative is anticipated to result in annual CO2 savings of approximately 9.3 million tonnes.

The commission approved the plan to encourage the growth of particular economic sectors without unduly distorting the market.

European Commission executive vice-president Margrethe Vestager stated: “This €3.2 billion Czech scheme will promote energy efficiency and help Czechia meet its CO₂ emission reduction targets.

“Granting support through competitive tenders will limit the aid to the minimum and keep electricity prices low for consumers, at the same time ensuring that possible distortions of competition are limited.”