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Commission approves €279 million Czech state aid scheme to support investments in energy storage to foster the transition to a net-zero economy

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The European Commission has approved a €279 million (CZ 7 billion) Czech scheme to support investments in electricity storage facilities to foster the transition towards a net-zero economy. The scheme contributes to the achievement of the priorities of the European Commission for 2024-2029, based on the Political Guidelines, which call for investments in clean energy and technologies. The scheme was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF'), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.

The purpose of the scheme is to reduce the reliance of the Czech electricity system on fossil fuels imports and at facilitating a smooth integration of renewable energy sources in the energy mix. Under the scheme, the aid, fully financed through the Modernisation Fund, will take form of direct grants, to support the construction of at least 1500 MWh of new electricity storage capacities. The measure will be open to all storage technologies directly connected to the transmission network or distribution network.

The Commission found that the Czech scheme is in line with the conditions set out in the TCTF. In particular, the aid will be (i) granted through a competitive bidding process open to all technologies; (ii) limited to 50% of eligible costs of a project; and (iii) granted no later than 31 December 2025. The Commission concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities in line with Article 107(3)(c) TFEU and the conditions set out in TCTF. On this basis, the Commission approved the scheme under EU state aid rules.

More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the number SA.117215 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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