The Czech Industry and Trade Ministry has called for supply security and simplified investments to be the focus of EU electricity market reform, to attract investors to the energy sector and protect households and industry from volatile prices. The EU is reforming the electricity market as a response to skyrocketing energy prices, as seen in most of 2022, and member states were due to submit proposals by 13 February. However, the Czech Republic has called for a holistic view of the system, reflecting developments in the energy transition and global challenges, and not just focusing on the past year. The country also urged for the need to strengthen the security of supplies and emergency preparedness of the energy system.

The Czech Republic is pushing for the “tech neutrality principle” to be respected, particularly for building new electricity plants, with the goal of ensuring that public budgets can be used to build new blocks of nuclear power plants. As one of the countries with the highest dependence on Russian fossil fuels and unstable electricity providers, Czech citizens have faced the highest energy prices compared to other EU countries in recent months.

For now, the country generates the majority of its electricity from fossil-fired and nuclear plants, with a renewable energy share of only 3.7% in 2022. In response to the high energy prices and the need to cut dependence on Russian fuels, the country simplified the rules for installing renewable energy sources.

The EU electricity market reform will need to ensure that the new market responds to the challenges of the energy transition and the growing demand for renewable energy. Simplifying investments and improving supply security will be essential to attracting investment and building a stable energy system. As the global energy landscape continues to evolve, with an increased focus on sustainability, it will be critical for the EU to maintain a holistic view of the system and remain responsive to changes in the industry.

In conclusion, the Czech Republic has called for supply security and simplified investments to be the focus of EU electricity market reform, to attract investment to the energy sector and protect households and industry from volatile prices. The country also urged for the respect of the “tech neutrality principle” to build new electricity plants, with a goal of using public budgets to build new blocks of nuclear power plants. The EU will need to maintain a holistic view of the system and remain responsive to changes in the industry to ensure a stable and sustainable energy system.

Article by Prague Forum