1 Czech Republic | Country reports

Czech RepublicEnergy efficiency report

Objectives:

– 1.7 Mtoe of end-user energy savings in 2016 –13%shareofrenewablesinfinalenergyconsumptionby2020

Overview 2009 2000-2009 (% / year)

Primaryintensity(EU=100)1 154 -- -2.7% ++CO2intensity(EU=100) 188 -- -4.2% ++CO2emissionspercapita(intCO2 /cap) 10.9 -- -1.2% +Power generation 2009 2000-2009 (% / year)Efficiencyofthermalpowerplants(in%) 30 -- 0.3% -RateofelectricityT&Dlosses(in%) 7 - -2.1% +CO2emissionsperkWhgenerated(ingCO2 /kWh) 565 -- -1.7% +Industry 2009* 2000-2009* (% / year)Energyintensity(EU=100) 115 - -6.3% ++ShareofindustrialCHPinindustryconsumption(in%) 35 ++ -3.6% --Unitconsumptionofsteel(intoe/t) 0.54 - -2.1% +*2008 and 2000-2008 for steel

1 TheEuropeanUnion,asthebest-performingregion,isusedasthebenchmark.

Latest update: January 2011

++ Amongbestcountries + BetterthantheEUaverage - BelowtheEUaverage -- Amongcountrieswithlowestperformances

Source: Enerdata

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Source: Enerdata

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Figure 1: Total and final energy consumption trends

Theindustrialsectorusedtobethedominantend-usesector,butitsshareinfinalenergyconsumptionhasdroppeddramati-cally,fromover50percentin1990to43percentin2009(non-energyusesincluded).Thehouseholds,servicesandagriculture sector account for 35 percent of final energy con-sumptionandremainedstableoverthe1990-2009period.Thesoaringenergyconsumptionofthetransportsector(+4.7percent/yearoverthe1990-2009period)ledtoanoticeableincreaseinthesector’sshareinfinalenergyconsumption,from7 percent in 1990 to 22 percent in 2009.

Electricityconsumptionpercapitais13percenthigherthantheEUaverage(about2,650kWhin2009).Theshareofelectricityinfinalenergyconsumptionregularlyincreasedbetween1990and2009,risingfrom12percentto17percent.Afteraslightdecreasein1992-1993,electricityconsumptionincreasedby1.6percent/yearuntil2008;in2009,itdroppedby5.4percent.Theindustrialsectorisstillthelargestelectricityconsumer,

Country reports | Czech Republic 2

1. Overview1.1. Policies: 1.7 Mtoe of energy savings by 2016The Czech National Energy Efficiency Action Plan was adopted in2007.Itsetsanenergysavingstargetof19.8TWh(1.7Mtoe)by2016,whichcorrespondsto9percentsavingscom-paredwiththeaverageconsumptionover2002-2006.About31 percent of those savings should be achieved in the house-holdssector,24percentintheindustrialsector,23percentinthetransportsector,16percentinservicesand6percentinthe agricultural sector.

TheEnergyManagementActtookeffectin2000andwasamendedin2006and2010.Itsetsminimumrequirementsregardingenergydemandinbuildings,energyauditsinbuild-ings and energy labeling of electrical appliances. It also pro-motestheuseofCHPandrenewableenergysources(anation-alprogramiselaboratedandupdatedeveryfouryears).

ThePanelProgram(2004)grantssubsidiesfortheretrofittingofbuildings.Between2009and2012,theCzechRepublicplanstoinvestabout€1bn($0.75bn)intheGreenInvestmentScheme,whichprovidesgrantscoveringupto50percentofresidential insulation costs.

1.2. Energy consumption trends: high consumption per capita EnergyconsumptionpercapitaintheCzechRepublicis25percenthigherthantheEUaverage,at4.1toein2009.Afteradeclinebetween1990and1999,totalenergyconsumption(primaryconsumption)grewregularlybetween2000and2007(+1.7percent/year);however,itdecreasedin2008and2009(byaround5percentoverthetwoyears)sincetheeconomicslowdownmainlyaffectedtheindustrialsector.

Fossilfuelscover80percentoftotalenergyconsumption:coalandligniteaccountfor43percent,followedbyoilwith21percent and gas with nearly 16 percent. Nuclear power sup-plies 14 percent of the energy needs.

Figure 2: Distribution of final energy consumption by sector

Source: Enerdata

1990-2009 2000-2009

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Final energy intensityCO2 intensity

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2. Power generation2.1. Policies: 13% of renewables in final energy consump-tion by 2020

The State Energy Policy adopted in 2004 set a series of renew-ableenergytargetstobeachievedby2030(15-16percentoftotalenergyconsumptionand17percentofelectricityproduc-tion).TheNationalRenewableEnergyActionPlan(2010)setthe target for the share of renewable energy in final energy consumptionat13percentby2020;renewablesourcesmustaccountforover14percentoffinalelectricityconsumptionbythatsamedate.Thereisnomandatoryquotaforelectricityproducedfromrenewablesources.

Taxexemptionswereintroducedtoboostthedevelopmentofprivate,renewableinstallationsgeneratingpowerforpersonaluse;asimilartaxexemptionconcerningsolarpowerplantoperatorswasabandonedinDecember2010.In2005theCzechRepublicalsoadoptedalawonthepromotionofpowerandheatgenerationfromrenewables,requiringpowerdistribu-torstobuyelectricityfromrenewablesourcesatpre-deter-minedprices:15-yearfeed-intariffsandgreenbonuseswereintroducedasof2006.Inthecaseoffeed-intariffs,producersbenefitfrompurchaseobligationsfromtheregionaldistributionsystemoperator,whereasproducerswhochoosegreenpremi-umshavetofindtheirowncustomers.

2.2. Power generation trends by source: nuclear power is gaining momentum TheCzechpowermixisdominatedbycoalandlignite(57percentin2009),whichisneverthelessdeclining(76percentin1990);theshareofnuclearpowerhasbeenrisingsince2000(fromaround20percentto33percentin2009,duetothedoublingofthenuclearcapacity).Thesharesofhydropowerandbiomass-firedgenerationarelow(4percentand5percent,

althoughitssignificanceisdecliningrapidly,fallingfrom60percent in 1990 to 44 percent in 2009.

1.3. Energy efficiency and CO2 trends: energy and CO2

intensities remain high Primaryenergyintensity(totalenergyconsumptionperunitofGDP),measuredatpurchasingpowerparity,is54percenthigherthantheEUaverage(2009).Primaryenergyintensitydecreased at the rapid pace of 2.3 percent/year between 1990 and 2009.

A sharp reduction in the energy intensity of the industrial sector (5.1percent/yearbetween1990and2009)ledtoarapidreductioninfinalenergyintensity(finalenergyconsumptionperunitofGDP):3.1percent/yearbetween1990and2009.How-ever,theincreasingshareofelectricitycoupledwithlow-effi-ciencypowergeneration(coal-fired,oil-firedandnuclear)preventedtheprimaryenergyintensityfromfallingatthesamepace.

Theprimaryenergyintensityreductioncontributedto70per-cent of the decrease in the CO2intensity(CO2emissionsperunitofGDP).Therisingshareofelectricityinprimaryconsump-tion,from7percentin1990to14percentin2009,andthedecliningshareofcoalinprimaryconsumption(from65per-centin1990to43percentin2009),furthercontributedtothereduction in CO2intensity;nevertheless,in2009itremained88percenthigherthantheEUaverage(measuredatpurchasingpowerparity).

3 Czech Republic | Country reports

Czech RepublicEnergy efficiency report

Source: Enerdata

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Figure 3: Electricity consumption trends by sector

Figure 4: Energy and CO2 intensity trends

Source: Enerdata

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Source: Enerdata

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Country reports | Czech Republic 4

respectively,in2009),limitingCO2-free generation to 42 per-cent of electricity production.

Figure 5: Power generation by source

2.3. Efficiency of the power sector: low-efficiency tech-nologies prevailTheefficiencyofthepowersectorislow(32percentin2009),owing to the large share of nuclear and coal-fired generation. Theefficiencyrateofthermalpowerplantsislow(30percentcomparedwith39percentonaverageintheEU),sincehigh-efficiencyplants(gascombinedcycles)accountforjust7percentofthethermalcapacity.

Therateofnetworklosseshasregularlydecreasedsince1994(-2percentagepoints),reaching7percentin2009.

The average CO2emissionfactorforpowergeneration(CO2 emissionsperkWhofelectricityproduced)hasdecreasedby17percentsince1990.Thatimprovementisduetothesharpdeclineincoal-firedgeneration(from76percentin1990to57percentin2009)andtotherisingshareofCO2-free generation (mainlynuclear),whichgrewfrom22percentofthepowermixin1990to37percentin2009.Nevertheless,thatemissionfactorremainstwiceashighastheEUaverage.

Source: Enerdata

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Figure 6: Efficiency of power generation and thermal power plants

Figure 7: Thermal electricity capacity, by technology

Source: Enerdata

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Figure 8: Electric T&D losses

5 Czech Republic | Country reports

Czech RepublicEnergy efficiency report

Source: Enerdata

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Figure 10: Industrial energy consumption

Theenergyconsumptionoftheindustrialsectorisincreasinglyorientedtowardgas(from15percentin1990to25percentin2009)andelectricity(from13percentto21percentduringthesameperiod).Theconsumptionofoilandcoalhasfallendra-maticallysince1990;consequently,theirshareoftheenrgymixhavefallenfrom49percentto36percentinthecaseofoil,andfrom16percentto4percentinthecaseofcoal.Biomassconsumptionisincreasing,althoughitsshareremainsmarginal(7percentin2009).

Energy-intensive industries account for two-thirds of industrial energyconsumption(2009).Steelisthelargestconsumingsector(27percentoftotalindustrialconsumption).Thesharesofthechemicalandnon-metallicmineralssectorsarecurrently18percentand13percent,respectively.Thepaperindustryaccountsfor7percentofindustrialconsumption.

Source: Enerdata

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Figure 11: Energy consumption of industry, by source

Source: Enerdata

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Figure 9: CO2 emission factor for power generation

3. Industry3.1. Policies: 4.8 TWh of energy savings by 2016TheCzechNationalEnergyEfficiencyActionPlan(2007)setsanenergysavingstargetof4.8TWhby2016fortheindustrialsector.Measuresincludeminimumefficiencyrequirementsinbuildingsandinelectricityandheatgeneration.Investmentsupportisavailabletoindustrialcompaniesthatcarryoutprojects for energy savings in buildings and energy-efficient industrialprocesses,andfinancialsupportisprovidedforR&Dprogramsintheareaofenergysavings.

TheEnergyEconomyAct,implementedin2000,requiredthatnewboilersintheindustrialsectorexceedingacertain,speci-fiedsizehadtoproduceheatandelectricity(CHP)withaminimumlevelofefficiency.ThepromotionofpowergenerationfromCHPandrenewableenergysourceswasreaffirmedin2004,whentheEnergyActwasamended.

In 2004 the Czech Ministry of Industry and Trade launched the OperationalProgramIndustryandEnterprise(OPIE).Energyauditsweremadecompulsoryforcompaniesconsumingmorethan35terajoules(TJ)/year(orabout9.73GWh/year);thoseauditsarepartiallysubsidized(upto30percentofthecosts).Industrialcompaniescanapplyforsoftloansforenergysav-ingsinvestments(upto40percent).Subsidieswerealsograntedtosmallandmediumenterprises(SMEs)forthemtomodernizetheirenergymanagementsystems,improvetheirenergyefficiencyandimplementCHPgeneration.

3.2. Energy consumption trends: declining industrial consumptionTheenergyconsumptionoftheCzechindustrialsectorhasbeen decreasing on a regular basis; the decline was rapid between1990and1999(6.6percent/year)buthassloweddownsincethen(0.6percent/year).

TheshareofCHPinindustrialelectricityconsumptionistwiceBetween2000and2008theenergyintensityofthemanufac-turingindustry(ie,excludingminingandconstruction)decreasedsharply(-7.9percent/year).Althoughabout42percentofthatimprovementwasachievedthroughefficiencygainsintheindustrialbranches(-3.3percent/year),itismainlyattributable to changes in the structure of industry: the share of energy-intensive sectors in the value added dropped to the benefitofequipmentmanufacturing,whichoverthesameperiod saw its share gain 12 percentage points in the value added.Figure 15: Trend in energy intensity of manufacturing

and structural effect

AllinformationordataprovidedbyEnerdata,inanyform,isthepropertyofEn-erdata and is protected in each country by national laws governing intellectual property.AllinformationordataprovidedbyEnerdataiscopyrightprotected,inclusiveofmaterialappearinginahardcopyformatorelectronically.DataprovidedbyEnerdataarebasedoncompilationandanalysisofthebestsour-cesintheindustry.Enerdatahasagreementswiththoseproviderstouseandpublish this data.

All pictures Copyright ABB

Source: Enerdata

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Country reports | Czech Republic 6

Source: Enerdata

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Figure 12: Energy consumption of industry, by branch

3.3. Energy intensity trends: structural changes improve industrial energy intensityIndustrialenergyintensityfellrapidlybetween2000and2008,by7percent/year.Thatimprovementwasmainlydrivenbythedecreaseintheunitconsumptionofthechemicalindustry,whichrankssecondintermsofenergyconsumption(7.7percent/year),andtoalesserextentbyimprovementsintheenergyefficiencyofsteelandcementproduction(2percent/yearreduction,approximately,oftheenergyconsumptionpertonneproduced).

TheshareofCHPinindustrialelectricityconsumptionistwiceashighastheEUaverage(2009).Itgrewsubstantiallybetween1990and2000(+24percentagepoints)andhasbeendeclin-ingsincethen(from49percentin2000to35percentin2009).

Source: Enerdata

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Figure 14: Share of industrial CHP in industrial consumption

Source: Enerdata

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Figure 13: Trends in the energy intensity of industrial branches