CZECHS FILL GRID WITH NEW ENERGY

CEZ Caps Czech Solar, Wind Power on Blackout Concern
Krystof Chamonikolas (w/Reed Landberg and Jonas Bergman), February 16, 2010 (Bloomberg News via BusinessWeek)

"CEZ AS, the largest Czech power producer and distributor, stopped issuing permits to build solar- and wind-power stations to prevent a network overload.

"The state-run company won’t authorize new projects because the number of pending applications from potential investors “threatens the safety and reliability” of the electric transmission grid, it said…Investments in solar power might be at risk, grid operator CEPS AS said…[If] new projects…exceed the capacity of its network…some [will have] to be disconnected to prevent blackouts during off-peak hours."

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[Marek Hatlapatka, analyst, Cyrrus brokerage:] “The golden age of solar energy is coming to an end…In the past two years, everyone with money has built or is building solar panels, as the high guaranteed price had made it a safe investment. Now the boom will slow.”

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"Total solar capacity may reach 3,000 megawatts in 2015, six times last year’s level and about half the country’s off-peak consumption on summer weekends, CEPS said…Czech solar generators are guaranteed by law 12 koruna ($0.63) per kilowatt- hour, the highest price in Europe.

"Legislation now being considered by parliament would reduce that so-called feed-in tariff for new projects. The proposal has led to a rush of applications from investors aiming to get permits under the existing rules…Last week, the grid operator called on CEZ AS and other power distributors to suspend issuance of permits…[which would not] affect planned projects that have already received permits."