Epoch-making changes in Czech energy legislation

Czech energy legislation is currently undergoing a fundamental transformation through several amendments to key laws. These changes respond to European directives, the need to modernise the grid, develop renewable energy sources and, more broadly, en-sure energy security. The new legislation will impact not only energy companies, but also end customers, in-vestors and producers. This article summarises the most important changes and their practical implications.

Modernisation of the energy grid and Lex OZE III

A cornerstone of the reform is Lex OZE III, which amends the Energy Act (Act No. 458/2000 Coll.) and related regulations. The amendment was promulgated on 31 March 2025 and will fully enter into force on 1 January 2028.

Its objective is to support aggregation, decentralisation, energy storage and the contro-versial reduction of state support for certain photovoltaic solar power plant operators ("PV plants").

Reduction of state support, control and transparency

One of the most significant changes concerns the tightening of conditions for obtaining state support for PV plants commissioned in 2009 and 2010. Operators will be required to submit annual data on the economic efficiency of their facilities. If they:

• fail to provide the required data, or
• exceed the profitability threshold (likely 8.4 %),
• they may lose their entitlement to support, even if it was originally guaranteed until 2030. This obligation will also apply to small installations (above 30 kW).

Regular inspections and an obligation to transparently report economic data are intro-duced. Operators will need to prepare for increased state supervision and potential ad-justments of support based on the actual economic performance of projects. Further de-tails will be specified in an implementing decree expected by the end of August 2025.

Licences and permits

The amendment raises the threshold for the obligation to obtain licences from the Energy Regulatory Office (ERÚ) and building permits. These requirements will now apply only to installations above 100 kW (previously 50 kW), thereby simplifying market entry for smaller installations and reducing the administrative burden.

Changes to depreciation rules

In the field of tax legislation, the provision on depreciation of tangible assets used for electricity generation from PV plants is repealed. For assets already being depreciated before the amendment enters into force, the existing rules will continue to apply. For new investments made after 30 June 2024, the new regime will apply.

Sharing and sale of electricity

Renewable energy operators will gain greater freedom to share and sell surplus electricity. Suppliers will no longer be able to prevent this by referring to surplus electricity purchase agreements. This opens up new possibilities for community energy projects and for more active market participation by producers.

Flexibility and aggregation

The amendment allows renewable energy operators (especially large installations) to provide remunerated grid balancing services, provided their facility has a capacity of at least 1 MW and can regulate production. These services may be provided either directly to the grid operator or through specialised companies.

Summary of impact on operators

PV plant operators will face increased administrative obligations related to transparency and profitability monitoring, with the potential loss of state support if profit thresholds are exceeded. At the same time, market entry will be easier for small installations and energy sharing will become more flexible. The changes aim to improve the efficiency and sustainability of support schemes, while also requiring greater transparency and economic discipline.

Energy storage

Lex OZE III also defines energy storage systems (batteries), which will enable better management of electricity consumption and sales. From 1 August 2025, a licence will be required for storage facilities above 100 kW connected to the grid.

A licensed electricity producer may store energy without an additional licence if the storage facility is connected to its own power plant and does not exceed 1.2 times the plant's capacity. The conditions will be similar to those applicable to generation, with stricter requirements applying to installations above 200 kW.

Amendment to the Nuclear Energy Act

In March 2025, an amendment to the Nuclear Energy Act (Act No. 263/2016 Coll.) was approved to support the development of small modular reactors (SMRs). The amendment:

• introduces a framework for the assessment and authorisation of SMRs;
• modifies the competences of the State Office for Nuclear Safety;
• allows for more flexible licensing of pilot projects.

This represents an important step towards securing stable, zero-emission energy sources in the long term.

Acceleration of permits and the Renewable Energy Acceleration Act (UVOZE)

Another development is the proposed Renewable Energy Acceleration Act (UVOZE), which is still at an early stage. It aims to transpose RED III and radically simplify permitting procedures for renewable energy installations.

In so-called acceleration zones, permits would have to be granted within 60 days. In addition:

• if authorities remain inactive for 30 days after the deadline, the project will be deemed approved;
• environmental assessments will be simplified;
• the rules will apply to solar, wind, biomass and hydropower projects.

If adopted in its proposed form, the act could drastically reduce barriers for investors and accelerate project implementation. However, the final text may still undergo changes.

Implications

The ongoing legislative changes represent a significant step forward for the energy sector in the Czech Republic, bringing both new opportunities and challenges for all market participants – from producers and municipalities to developers and end consumers. In particular, PV plant operators must pay close attention to the new obligations, which could have a profound impact on the profitability of their projects.

Daniele Iàcona | Head of Italian Hub | Senior Attorney at Law
T: +40 733 730 119 | E: d.iacona@schoenherr.eu

Jiří Marek | Attorney at Law | Schoenherr Czech Republic
T: +420 225 996 500 | E: j.marek@schoenherr.eu

Natálie Dubská | Associate | Schoenherr Czech Republic
T: +420 225 996 500 | E: natalie.dubska@schoenherr.eu