Solar power support in the Czech Republic Source:Thebriefandwondrouslifeofsolarenergydevelopment

(http://www.pritomnost.cz/en/economics/202thebriefandwondrouslifeofsolarenergydevelopment)andCzechindustryministrypreparesnew
measuresagainstsolarpowercompaniestocurbrenewablescosts(http://www.radio.cz/en/print/article/420289)

Forafewyears,thesunwasshiningontheCzechRepublicsalternativeenergyindustry.From2009to2010,
theworldwatchedasthe...countryrosefromvirtualsolarobscuritytobecomeoneofthebiggestproducersof
photovoltaicsinEurope.Then,justasquicklyasitgrew,thingsstartedtogowrong....
Theinitialriseinphotovoltaicsoccurredthankstomassivegovernmentincentivesintheformofsubsidies,fixed
purchaseprices,anddecreasingcostsoftechnology.In2010,thecountrysfeedintariffforsolarwasatatitanic
12.15CZKperkWh,alltoachievethegoalof13%solarproducedelectricityby2020.Inthefinalyearofthe
boom,theEnergyRegulatoryOfficereportedthattheCzechRepublicstoodasthethirdhighestcountryin
photovoltaicinstallationsafterGermanyandItalywith1489.8MWpofnewongridcapacityinasingleyear.
ThebriefperiodofexcitementoversolarenergyintheCzechRepubliccametoajarringendinNovemberof
2010withtheapprovalofasolartaxandawithdrawalofgovernmentalsupportforlargeinstallations.High
tariffscoupledwithrapiddevelopmentmeantsharpincreasesinenergycoststhatpressurizedthemarket.To
compensate,anewlawputa26%taxonphotovoltaicplantsproducingover30kWpanda28%levyforgreen
bonuses....However,thenewlegislationdidmorethanjustcooldowntheboomitflatoutendeddevelopment
foraboutayearandahalf.....
Thesun...neversetsonthecontinuing....taleoftensofbillionsofcrownsayearthatcouldprobablyhavebeen
betterspent.Thelatestchapterisfocusedonahighlycontroversialproposalforanewenergylaw...
Theminister...believesthattheburdenofsupportingelectricityproducedfromrenewables,mostlysolar,should
beshiftedawayfromheavyindustryandontosmallandmidsizedconsumersandhouseholds.Thereisalsothe
latestmoveinmanyagainstsolarpowercompanieswiththeideathatfordifferenttypesofproductionshouldbe
cappedatacrediblelevelgiventheircapacity.
TheCzechregulatorsuspectsthatsomecompanieshavebeenboostingtheirrenewablepowerearningsby
falsifyingtheirelectricityproductionfigurestounbelievablelevelsgiventheshyandhesitantcharacterofthe
sunwhenpassingabovetheCzechcountryside.Somesolarcompaniesmayhaveaddedextrapanelsorsecretly
upgradedtheirexistingonestoboostelectricityproduction,itadds.
PerhapstheymightalsobefollowingtheruseuncoveredbySpanishpowerregulators,whichfoundthatsolar
companieshadinstalledrunofthemillpowergeneratorstoproduceextraelectricityandpocketthehighextra
rewardsforgreenpower.Anyway,therewardscalibratedaccordingtonormalsolarpaneloutputandaverage
Czechsunperformanceareseenasasolutiontothispossiblefraud....
Anditseemsthatthesolarcompaniesarenotaloneintheiropposition.Someofthemanybankswhichmadesizableloans
tothesolarcompaniestogetthemstartedandoperationalarealso,itseems,arenowworriedthattheprofitabilityofthe
firmsisnowendangeredandthehundredsofmillionsinoutstandingloansownedtothemcouldalsobethreatened....
AccordingtoCzechsolarpowerlobbyCZEPHO,thesectorisalreadyincrisisthankstothewindfalltaxes,cutsinsupport,
andcurbsputoncompaniesinrecentyears.HardlyanynewsolarcapacityhasbeenbuiltintheCzechRepublicthisyear,it
says.