The Czech lower house voted Wednesday to overhaul the current support
system for renewable power, allowing feed-in tariffs to be cut by more than
5.0% from next year. Under the amendment, cuts of more than 5.0% will be
allowed if a renewable facility pays back its investment costs in less than
11 years. The vote comes against the backdrop of a solar power boom in the
Czech Republic, where feed-in tariffs are amongst the highest in Europe.
Under the existing subsidy rules, the energy regulator cannot cut feed-in
tariffs by more than 5.0 a year. But the regulator, the ERU, and government
argue that investment costs for photovoltaic power have almost halved in
recent years, sparking the Czech boom. The amendment still needs to be
backed by the upper house, the Senate, but this is not expected to be a
problem. Feed-in rates are subsidies paid by governments to producers of
renewable energy.