Act No. 180 / 2005 Coll.

Act on the promotion of the production of electricity from renewable energy sources and amending certain laws (Act on the promotion of the use of renewable energy sources)

Valid Law Effective from 01.08.2005
180
THE LAW
of 31 March 2005
on the promotion of the production of electricity from renewable energy sources and amending certain laws (Law on the promotion of the use of renewable energy)
Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

AID FOR ELECTRICITY PRODUCTION FROM RELATED ENERGY RESOURCES

HLAVA I

GENERAL PROVISIONS
§ 1
Subject matter
(1) This law regulates, in accordance with the law of the European Community1) the way in which electricity is produced from renewable energy sources and from mine gas from closed mines and the exercise of state administration and the rights and obligations of natural and legal persons associated therewith.
(2) The purpose of this Act is to protect the climate and the environment
(a) promote the use of renewable energy sources (renewable energy sources);
(b) ensure a sustained increase in the share of renewable sources in primary energy consumption;
(c) contribute to the sustainable use of natural resources and to the sustainable development of society;
(d) to create conditions for the fulfilment of the indicative objective of the share of electricity from renewable sources in gross electricity consumption in the Czech Republic of 8% by 2010 and to create conditions for the further increase of this share after 2010.
§ 2
Basic concepts
(1) Renewable sources are renewable non-fossil natural energy sources, which are wind energy, solar energy, geothermal energy, water energy, soil energy, air energy, biomass energy, landfill gas energy, sludge gas energy and biogas energy.
(2) For the purposes of this Act:
(a) biomass-degradable fraction of products, waste and residues from the operation of agriculture and forest management and related industries, agricultural products grown for energy purposes as well as biodegradable fraction of sorted industrial and municipal waste;
(b) electricity from renewable sources electricity produced in installations using only renewable sources, as well as part of electricity produced from renewable sources in installations using also non-renewable energy sources;
(c) gross domestic electricity consumption, plus imports and deduction of electricity exports;
(d) by a green bonus, a financial amount increasing the market price of electricity and paid by the regional distribution system operator or the transmission system by producers of electricity from renewable sources, taking into account reduced environmental damage by using renewable resources compared to the combustion of fossil fuels, the type and size of production facilities, the quality of the electricity supplied;
(e) by a regional distribution system operator, the holder of a power distribution licence whose distribution system is directly connected to the transmission system.
§ 3
Objective of aid
(1) The aid under this Act ("the aid") applies to the production of electricity from renewable sources in electricity plants within the Czech Republic connected to the electricity system of the Czech Republic directly, through a demand point or through another electricity plant connected to the electricity system of the Czech Republic, with the exception of wind power plants located on an area of 1 km2 with a total installed output exceeding 20 MWe. In the case of the production of biomass electricity, the aid shall cover the types and uses of biomass provided for in the environmental legislation.
(2) The aid for the production of electricity from renewable sources is determined in a different way, taking into account the type of renewable resource and the size of the installed output of the production plant and, in the case of electricity produced from biomass, the biomass parameters laid down in the implementing legislation.
(3) In determining the aid referred to in paragraph 2, the Energy Regulatory Authority (hereinafter "the Authority ') shall have an economic advantage for the purposes of the exclusive burning of solid biomass, the use of waste biomass from timber production and the industrial processing of wood and, in the case of the joint incineration of solid biomass and non-renewable energy sources, the dedicated energy biomass.
(4) The aid also covers the production of electricity from mining gas from closed mines. The provisions of Title II and Title III shall apply mutatis mutandis to such aid; Paragraph 4 (13), (14) and (18) shall not apply.
(5) In the case of electricity produced by the use of solar energy, the aid shall apply only to electricity produced in a power plant with installed output of up to 30 kWp, which is located on the roof structure or on the perimeter wall of one building connected to the ground with a fixed base registered in catastrophe 5).

HLAVA II

AID FOR ELECTRICITY PRODUCTION FROM RELATED RESOURCES
§ 4
Rights and obligations of entities on the renewable electricity market
(1) A transmission system operator or distribution system operator (s) shall, on its licences defined by Article 2), be required to connect, as a priority, to the transmission system or distribution systems of the installation referred to in Article 3 (hereinafter referred to as "the installation" for the purpose of the transmission or distribution of electricity from renewable sources, provided that the electricity producer from renewable sources (hereinafter referred to as "the manufacturer") so requests and meets the conditions of connection and transport of electricity laid down by the specific legislationm2.
(2) The connection obligation of the renewable electricity producer's installation shall be incurred by the operator of the distribution system where the cost of connection is the lowest, except in cases of a demonstrable lack of capacity of the distribution facility or at risk of reliable operation of the distribution system.
(3) The producer of electricity from renewable sources benefiting from the aid has the right to choose whether to offer its electricity for purchase in accordance with paragraph 4 or to require a green bonus for it. A change in this choice is possible not earlier than one year after the manufacturer has made a binding choice of the two options and started using it. A change of selection shall be made on 1 January of the following calendar year. The dates and details of the selection of the aid scheme shall be laid down in the implementing legislation.
(4) Regional distribution system operators and transmission system operators shall be obliged to purchase all electricity from renewable sources covered by the aid and to conclude a supply contract if the producer has offered electricity from renewable sources under the conditions laid down in paragraph 5 and at the prices laid down in paragraph 6. Part of this obligation is to assume responsibility for the derogation under the special legislation3).
(5) The regional distribution system operators and the transmission system operator use the electricity purchased under paragraph 4 to cover losses. In the event that the immediate performance of the compulsory electricity purchased from renewable sources referred to in paragraph 4 exceeds the amount of electricity to cover losses, that excess shall be considered as a derogation from the relevant regional distribution system operator or transmission system operator.
(6) In the case of electricity generation jointly produced from renewable sources and non-renewable energy sources, the aid is granted only in the form of green bonuses.
(7) If the electricity producer from renewable sources benefiting from the aid has not offered such electricity for the compulsory purchase referred to in paragraph 4 and has sold it on the electricity market, the operator of the relevant regional distribution system or transmission system operator shall pay the producer for that electricity a green bonus expressed in CZK / MWh.
(8) Derogations in the performance of installations on grounds of the natural nature of renewable sources shall not be a reason for failure to fulfil the obligations referred to in paragraph 4.
(9) Distribution system operators and transmission system operators are responsible for the derogation associated with the provision of losses in their systems which they may transfer to another clearing entity under special legislature3.
(10) The costs associated with the derogation from the renewable electricity producer purchased in accordance with paragraph 4 shall be the eligible costs of distribution system operators and transmission system operators for the calculation of regulated distribution and transmission prices and the clearing entity shall have the right to charge those costs to distribution system operators or transmission system operators. Details shall be provided by implementing legislation.
(11) A manufacturer who produces electricity from renewable sources together with electricity from non-renewable energy sources is obliged to ensure separate measurement of the electricity produced or calculation of the amount of electricity produced from renewable sources in accordance with the specific legislation4).
(12) The producer who produces electricity through the joint combustion of biomass and non-renewable energy sources has a quantity of electricity from renewable sources, the actual acquisition of biomass and its quality and the actual use of all biomass acquired for the purposes of electricity production in accordance with the implementing legislation.
(13) The electricity market operator shall, at the written request of the producer producing electricity from renewable sources, issue a confirmation of the origin of electricity from renewable sources (hereinafter referred to as "the guarantee of origin '). The guarantee of origin shall be issued by the electricity market operator within 30 calendar days of receipt of the request. The model of the application for a guarantee of origin and the model of the guarantee of origin shall be laid down in the implementing legislation.
(14) Recognition of the guarantee of origin issued in another Member State of the European Communities shall be carried out by the Ministry of Industry and Trade.
(15) A manufacturer who produces electricity from renewable sources and who claims to pay a green bonus in accordance with paragraph 7 is obliged to conclude a contract for the supply of electricity with another electricity market participant in accordance with the specific legislation (m3). This obligation does not apply to producers which consume all the electricity they have produced from renewable sources themselves.
(16) The right to pay the green bonus also applies to the producer who produces electricity from renewable sources for own consumption. The obligation to pay the green bonus to that producer arises from the regional distribution system operator whose designated territory the electricity plant of that producer is located.
(17) A manufacturer which has offered electricity for a compulsory purchase must conclude a contract with the operator of the relevant regional distribution system or transmission system.
(18) The share of electricity from renewable sources in gross electricity consumption in the Czech Republic may only be taken into account if the exporting State has a similar provision allowing imports to be counted. Electricity from renewable sources will only be included once in the indicative targets of the share of electricity from renewable sources in gross electricity consumption of Member States of the European Communities. Detailed records of imports and exports of electricity from renewable sources in the Czech Republic are laid down in implementing legislation.
§ 5
Conditions for support, purchase and registration of electricity production from renewable sources
(1) The basic time period for the purchase of electricity from renewable sources is 1 hour. For installations not equipped with continuous measurements, another time period may be agreed between the regional distribution system operator or the transmission system operator and the manufacturer.
(2) The basic time period for evaluating and clearing the purchase of electricity from renewable sources shall be 1 month, unless otherwise agreed between the regional distribution system operator or the transmission system operator.
(3) Where the manufacturer intends to offer electricity from renewable sources for redemption pursuant to Article 4 (4), it shall notify the relevant regional distribution system operator or transmission system operator accordingly. The dates of notification of this fact shall be laid down in the implementing act.
(4) The transmission of data on the amount of electricity from renewable sources referred to in paragraph 6 to a regional distribution system operator or transmission system operator shall entitle the manufacturer to pay the green bonus provided for in Article 6.
(5) A producer producing electricity from renewable sources for its own use is obliged to transmit measured or calculated data on the quantity of electricity produced by it from renewable sources to a regional distribution system operator or transmission system operator. By fulfilling this obligation, this producer shall be entitled to pay the green bonus and to issue a guarantee of origin pursuant to Paragraph 4 (13).
(6) For the production and purchase of electricity from renewable sources, the manufacturer shall transmit the measured or calculated data by type of renewable sources to the relevant regional distribution system operator or transmission system operator in accordance with the specific legislation3), 4).
§ 6
Amount of electricity prices from renewable sources and green bonuses
(1) The Authority shall fix, for each calendar year in advance, the buying-in prices for electricity from renewable sources (hereinafter referred to as "purchase prices") separately for each type of renewable sources and green bonuses in order to:
(a) conditions have been created to meet the indicative objective of the share of electricity production from renewable sources in gross electricity consumption of 8% in 2010; and
(b) for equipment put into service:
1. After the date of entry into force of this Act, 15 years of return on investment has been achieved in support of the ransom prices, subject to compliance with technical and economic parameters, in particular the cost of the installed unit of performance, the efficiency of the use of primary energy content in a renewable source and the period of use of the equipment, as laid down in the implementing legislation,
2. after the date of entry into force of this Act, the amount of the revenues per unit of electricity from renewable sources in support of the purchase prices for a period of 15 years from the year of entry into service of the plant has remained minimal, taking into account the price index of industrial producers; the installation is also considered to be being put into service by the termination of the reconstruction of the technological part of the existing installation, the change of fuel or the cessation of modernisation, increasing the technical and ecological level of the existing installation,
3. prior to the date of entry into force of this Act, the minimum level of purchase prices established for 2005 under existing legislation has been maintained for 15 years, taking into account the index of prices of industrial producers.
(2) In determining the level of green bonuses, the Authority shall also take into account the increased risk of the use of electricity from renewable sources on the electricity market.
(3) In determining the ransom prices and the green bonuses, the Office shall base itself on the different costs of acquiring, connecting and operating individual types of equipment, including their time development.
(4) The purchase prices established by the Authority for the following calendar year shall not be less than 95% of the value of the purchase prices in force in the year in which the redetermination is decided. The first sentence shall not apply to the determination of the ransom prices for the following calendar year for those types of renewable sources for which the return on investments is less than 11 years in the year in which the redetermination of the ransom prices is decided; The Office shall proceed in accordance with paragraphs 1 to 3 when setting the ransom prices.
§ 6a
Financing of the aid
(1) The transmission system operator or regional distribution system operator has the right to meet the additional costs associated with the promotion of electricity from renewable sources. The additional costs of the transmission system operator or regional distribution system operator as referred to in the previous sentence shall be borne by the component of the electricity transmission price or the electricity distribution price to cover the additional costs associated with the support of electricity from renewable sources regulated by the Authority and the subsidy from state budget funds.
(2) The Government, by regulation, lays down a ceiling on State budget resources for the grant of subsidies to cover additional costs associated with the promotion of electricity from renewable sources by 31 October of the calendar year preceding the calendar year for which the Authority sets electricity transmission prices or electricity distribution prices.
(3) Where the limit of State budget resources determined in accordance with paragraph 2 is insufficient to cover the additional costs associated with the promotion of electricity from renewable sources, the Authority shall include the remaining additional costs of the transmission system operator or regional distribution system operator in the component of the electricity transmission price or the electricity distribution price to cover the additional costs associated with the promotion of electricity from renewable sources.
(4) The Authority declares in the form of a communication (6) in the Collection of Laws with effect from 1 January of the calendar year the amount of additional costs associated with the promotion of electricity from renewable sources paid by transmission system operators or regional distribution system operators in the form of a subsidy from State budget funds.
(5) The amount of the additional costs associated with the promotion of electricity from renewable sources in the form of a subsidy referred to in paragraph 4 shall be calculated as the difference between the expected total additional costs associated with the promotion of electricity from renewable sources of the transmission system operator or regional distribution system operator and the anticipated revenues of the transmission system operator or regional distribution system operator referred to in paragraph 3. In determining the additional costs associated with the promotion of electricity from renewable sources of a transmission system operator or a regional distribution system operator and the anticipated revenues of a transmission system operator or a regional distribution system operator, the Authority shall act in accordance with the legislation governing the way prices are regulated in the energy sector and the price regulation procedures (7).
(6) The Authority shall take into account the differences between expected and actual extra costs associated with the promotion of electricity from renewable sources over the previous calendar year when setting prices for the following calendar year under the legislation governing the regulation of prices in the energy sector and price regulation procedures (7).
§ 6b
Grants
(1) The grant to cover the additional costs associated with the promotion of electricity from renewable sources pursuant to Article 6a is granted by the Ministry of Industry and Trade to transmission system operators and regional distribution system operators on a quarterly basis on the basis of their requests submitted to it by those operators by the end of the month following the quarter. The Ministry of Industry and Trade shall, by the end of the next month, inform them of the amount indicated in the Communication under Paragraph 6a (4).
(2) The Ministry of Industry and Trade will issue a decision in accordance with the budget plan (8), stating only its name and address, registered address and identification number of the transmission or regional distribution system operator to whom the grant is addressed, the amount and date of the decision.
§ 7
Regular evaluation
(1) On 30 June, the Authority shall publish an evaluation of the proportion of electricity production from renewable sources in gross electricity consumption over the previous calendar year and the expected effects of the aid on the total electricity price for final customers in the coming calendar year.
(2) The Ministry of Industry and Trade, in cooperation with the Ministry of the Environment and the Office, shall submit to the Government each year, for the first time in 2005, by 30 September, a report which shall include an analysis of the progress made in meeting the provisions of Paragraph 1 (2) (d).

HLAVA III

REPEALED FROM THE ELECTRICITY FROM THE SLUNECH LIGHT
§ 7a
Subject matter of the solar electricity contribution
The subject of the solar electricity levy ("the levy ') is the electricity produced from solar radiation in the period from 1 January 2011 to 31 December 2013 in the installation put into service from 1 January 2009 to 31 December 2010.
§ 7b
Entities
(1) The levy is payable by the manufacturer when it produces electricity from sunlight.
(2) The transmission system operator or regional distribution system operator is the charge payer.
§ 7c
Submission basis
The basis of the levy is the amount excluding value added tax paid by the payer in the form of a purchase price or a green bonus to the taxpayer in the form of a charge for electricity from sunlight produced during the period of the levy.
§ 7e
Input rate
The rate of the levy on the basis of the levy is in the form of:
(a) purchase prices of 26%;
(b) a green bonus of 28%.
§ 7f
Deduction period
The levy period shall be the calendar month.
§ 7g
Method of collection
(1) The payer of the levy is obliged to reduce or select the levy from the base of the levy.
(2) The payer is obliged to withdraw the levy from the levy base within 25 days of the end of the period; within the same period, he shall be obliged to lodge a bill of account.
§ 7h
Administration of the levy
(1) The management of the levy is carried out by the territorial financial authorities.
(2) The administration of the levy shall be carried out according to the tax rules.
§ 7i
Budget identification of the levy
The levy is the income of the state budget.

HLAVA IV

COMMON PROVISIONS
§ 8
Control
The control of compliance with this Act, with the exception of the control of the levy and its administration, shall be carried out by the State Energy Inspection ("Inspection ') 2.
Administrative offences
§ 9
(1) The operator of a regional distribution system or transmission system operator who does not purchase electricity from renewable sources pursuant to § 4 (4) or does not pay a green bonus pursuant to § 4 (7) shall be fined up to CZK 5 000 000.
(2) Manufacturers who transmit false measured or calculated data to a regional distribution system operator or transmission system operator for the quantity of electricity produced by them from renewable sources pursuant to Article 5 (5) and (6) shall be fined up to CZK 5 000 000.
(3) Manufacturers who do not provide separate measurement of electricity from renewable sources pursuant to Paragraph 4 (11) shall be fined up to CZK 1 000 000.
(4) A manufacturer who does not show the correct quantity of electricity produced from renewable sources, the actual acquisition of biomass and its quality and the actual use of all biomass acquired for the purposes of electricity production pursuant to Paragraph 4 (12) shall be fined up to 1 000 000 CZK.
(5) A manufacturer who does not transmit measured or calculated data pursuant to § 5 (6) shall be fined up to CZK 100,000.
(6) Manufacturers who repeatedly transmit false measured or calculated data on the quantity of electricity produced from renewable sources pursuant to Article 5 (5) and (6) may decide to suspend entitlement to the purchase price or green bonus for up to 2 years.
§ 10
(1) The fines are imposed, collected and enforced by inspections.
(2) In fixing the amount of the fine, account shall be taken of the seriousness of the administrative offence, in particular of the manner in which it was committed and its consequences and the circumstances in which it was committed.
(3) The liability of a legal person for an administrative offence shall cease if the Territorial Inspectorate has not initiated proceedings against him within 1 year of his knowledge, but no later than 3 years from the date on which he was committed.
(4) Administrative offences under this law shall be dealt with at first instance by the competent territorial inspector. An appeal against the imposition of a fine shall be decided by the Central Inspectorate.
(5) Article 9 shall apply to liability for conduct arising in the course of or directly related to the business of a natural person.
(6) The fines are the income of the state budget.
§ 11
Transitional provision
The right to choose the green bonus under § 4 (3) and § 4 (7) may apply from 1 January 2006.
§ 12
Entitlement to adopt implementing legislation
(1) The Ministry of the Environment shall issue implementing legislation for the implementation of Article 3 (1) and (2).
(2) The Ministry of Industry and Trade will issue an implementing act implementing Sections 4 (13) and 4 (18).
(3) The Authority will issue an implementing act implementing Sections 4 (3), 4 (10), 4 (12), 5 (3) and 6 (1) (b) (1).

ČÁST DRUHÁ

Amendment to the Energy Management Act
§ 13
Act No. 406 / 2000 Coll., on Energy Management, as amended by Act No. 359 / 2003 Coll. and Act No. 694 / 2004 Coll., is amended as follows:
1. in Article 2, point (b) is deleted;
Points (c) to (f) shall be renumbered (b) to (e).
2. In Article 4 (5) (c), the following footnote 1 is inserted after the word "energy ':
"1) Act No. 180 / 2005 Coll., on the promotion of the production of electricity from renewable energy sources and on the amendment of certain laws (Act on the promotion of the use of renewable sources)."
footnote 1 shall be renumbered footnote 1a, including the footnote reference.

ČÁST ČTVRTÁ

EFFECTIVE
§ 15
That law shall take effect on the first day of the third calendar month following its publication.
Zaoralek v. r.
Paroubek v. r.
1) Directive 2001 / 77 / EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity from renewable sources in the internal market in electricity.
2) Act No. 458 / 2000 Coll., on the Terms and Conditions of Business and the Enforcement of Government Administration in the Energy Sector and on the Amendment of Certain Laws (Energy Act), as amended.
3) Decree No 373 / 2001 Coll., laying down the rules for the organisation of the electricity market and the principles for pricing the activities of the market operator, as amended.
4) Decree No. 218 / 2001 Coll., laying down details of electricity measurements and transmission of technical data, as amended.
5) Act No. 344 / 1992 Coll., on the cadastral property of the Czech Republic (cadastral law), as amended.
6) Paragraph 2 (1) (e) of Act No. 309 / 1999 Coll., on the Collection of Laws and on the Collection of International Contracts.
7) Decree No. 140 / 2009 Coll., on the ways of regulating prices in energy sectors and price regulation procedures.
8) Article 14 of Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended.

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Regulation Information

CitationAct No. 180 / 2005 Coll., on the promotion of the production of electricity from renewable energy sources and on the amendment of certain laws (Act on the promotion of the use of renewable sources)
Regulation TypeLaw
Author-
CollectionCode of Laws
Date of Promulgation05.05.2005
Effective from01.08.2005
Effective until-
Status Valid
The regulation text is for informational purposes only.
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