We maintain our bearish outlook for the Czech renewables sector, which will see minimal capacity and generation gains over the coming decade. Unfavourable regulatory environment and lack of political will to develop non-hydro renewables remains the key factor in dampening investor interest in the sector. The upcoming parliamentary and presidential elections, as well as decommissioning of the country's vital nuclear capacity, offer some upside potential in the medium-term.
Forecast And Latest Updates
Following the removal of Feed-In-Tariffs (FITs) back in 2013, growth in the Czech non-hydro renewables sector has seen a notable slowdown. The sector's capacity increased by just 3.5MW (0.1%) in 2016 and we forecast similarly low expansion levels throughout the 2017-2026 period. The upcoming parliamentary elections in October 2017, and presidential polls in January 2018, could potentially bring some policy changes thus offering a moderate upside risk to our current outlook.