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Czech Republic Renewables Report Q2 2016

Czech Republic Renewables Report Q2 2016

BMI View: This quarter we have revised down our forecasts, as we expect to see limited opportunities in the Czech renewables sector. Concerns over the country's economic competiveness and previous difficulties with setting renewables subsidies at a sustainable level have led the government to scale back - and almost abandon - its pursuit of renewable energy. With cheaper fuel sources taking priority, we maintain our reserved outlook for the industry.

Latest Updates And Structural Trends

The country aims to develop renewables to account for at least 15-16% of total energy consumption by 2030, a target we consider unachievable at present. Although the Czech Republic has made an impressive start in adopting renewable sources into its electricity mix, we believe that high levels of regulatory uncertainty in the industry and the government's apparent preference for thermal power sources will result in a much less robust expansion than in previous years. As such, we forecast non-hydro renewables capacity to register an average annual growth rate of just 0.22% between 2016 and 2025. Non-hydro renewables generation will expand at a similarly slow rate, at 0.23% over the same time period.

On May 18 2015, the Czech government approved an updated version of the country's energy strategy - the first version of the document was approved in 2004. The revised strategy sets out the targets for and direction of the Czech energy sector for next 25 years, focusing on nuclear and renewables. While this strategy is binding on the state administration in the field of energy management, it is still unclear how it will be implemented due to budgetary and financial constraints. We will continue to monitor the situation but will not revise our forecasts until more concrete steps are taken.


BMI Industry View
Table: Renewables Headline Forecasts (Czech Republic 2015-2020)
SWOT
Industry Forecast
Czech Republic Renewables Forecast Scenario
Latest Updates
Structural Trends
Table: Total Electricity Generation Data And Forecasts (Czech Republic 2014-2019)
Table: Total Electricity Generation Data And Forecasts (Czech Republic 2020-2025)
Table: Electricity Generating Capacity Data And Forecasts (Czech Republic 2014-2019)
Table: Electricity Generating Capacity Data And Forecasts (Czech Republic 2020-2025)
Industry Risk/Reward Index
Czech Republic Renewables Risk/Reward Index
Rewards
Risks
Market Overview
Sustainable Energy Policy And Infrastructure
Targets
Subsidies
Table: Renewable Feed-In Tariffs In The Czech Republic, 2011
Infrastructure
Competitive Landscape
CEZ
E.ON
PRE
CEPS
Glossary
Table: Glossary Of Terms
Methodology
Methodology And Sources
Industry Forecast Methodology
Sources
Risk/Reward Index Methodology
Table: Renewables Risk/Reward Index Indicators
Table: Weighting Indicators

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