The report “Energy Policy Review Czechia 2025” published by IEA highlights that the Czech Republic (Czechia) aims to phase out coal at an almost unprecedented pace. Coal is a major fuel source in Czechia, currently providing more than one-third of Czechia’s electricity and half of its district heating. Coal-fired plants are slated for retirement by 2033, but economic drivers may close them earlier. The transition from its fossil fuel legacy can be a springboard to building a vibrant clean energy economy. But it is not without challenges, such as addressing local impacts in coal-dependent regions, accelerating the deployment of alternative sources of energy, managing workforce transitions and gaining public acceptance. There is no time to waste: decisions taken in the coming years will be pivotal to determining the success of the phase-out. This report provides timely advice on how Czechia can achieve its goals, including in two focus areas: replacing coal in power generation and decarbonising heating in buildings.
Updating Czechia’s suite of energy strategies is a pressing priority, as is ensuring their collective coherence. Doing so will provide a clearer direction to stakeholders and boost investor confidence. Significant steps are being taken to improve energy security and reduce reliance on Russian imports. To address short-term energy security concerns related to the coal phase-out, legislation now allows temporary operation of coal plants in case of shortages, and a capacity mechanism is being developed to attract investment in new dispatchable generation. Government interventions should be targeted and temporary, and low-carbon alternatives should be prioritised to avoid overreliance on natural gas, which would result in fossil fuel lock-in.
Scaling up renewables and enhancing system flexibility are critical to phasing out coal, meeting climate targets and ensuring energy security. Renewable deployment has accelerated in recent years, led by rooftop solar photovoltaics (PV), but wind and utility-scale solar are lagging due to permitting delays, local opposition, retroactive policy changes and grid connection issues. Commendable reforms are now streamlining project approvals and enabling community investment schemes. To build on this progress, Czechia should consider setting binding renewables targets, publishing an auction schedule that is easily accessible on Czech and international platforms, improving conditions for corporate power purchase agreements (PPAs) and reducing grid connection queues. Decarbonising heat in buildings is a major challenge and a vital opportunity. Czechia’s energy transition is as much social as technological. Its success will depend on supporting coal miners and other affected workers, involving citizens in charting the path forward, and ensuring that energy remains affordable for all.
Access the report here