Long-Awaited Legislative Reform in the Czech Republic called Lex OZE 3 Finally Approved

The recent approval of the Lex OZE 3 amendment by the Czech Chamber of Deputies on December 11, 2024, represents a major step forward for renewable energy in the Czech Republic and is a particularly positive development for the NRGCOM project. NRGCOM, focused on fostering the development of renewable energy communities in the Danube Region, benefits directly from the legislative framework that aligns with its mission to promote decentralized, community-driven energy solutions.

Lex OZE 3 introduces key measures that modernize the Czech energy sector. Among its most notable provisions is the formal integration of electricity storage and the aggregation of flexibility, which balances electricity production and consumption to stabilize the grid. This change creates opportunities for greater utilization of battery storage systems, enabling renewable energy to be stored and used efficiently, even during times of low production. Such advancements directly support the goals of NRGCOM by creating the technical conditions necessary for the effective operation of energy communities.

The amendment also introduces enhanced protections for consumers, particularly those participating in electricity sharing—a core element of community energy projects. It prohibits electricity traders from imposing unfair conditions or unjustifiably increasing costs for shared electricity usage. Additionally, the legislation simplifies the authorization process for small-scale photovoltaic systems up to 100 kW designed for self-consumption or shared use. By eliminating the need for a license for these installations, it reduces administrative burdens, making it easier for households, businesses, and local institutions to participate in renewable energy initiatives. This regulatory simplification is a critical enabler for energy communities, allowing them to flourish without being hindered by excessive bureaucracy.

Energy communities, a central focus of NRGCOM, stand to gain significantly from Lex OZE 3. By formalizing electricity sharing and integrating innovative storage and aggregation solutions, the legislation ensures these communities can operate more efficiently and reliably. It provides a solid framework that supports the creation and management of local energy initiatives, empowering communities to produce, consume, and share energy sustainably while fostering energy independence and resilience against market fluctuations.

Another important aspect of the amendment is its emphasis on fairness in the energy transition. A proposal to allow state subsidies for coal-fired power plants was withdrawn during the legislative process, ensuring that public funds are not diverted to fossil fuel infrastructure. This decision protects consumers from additional costs in their electricity bills and ensures that financial support is directed toward renewable energy, aligning with the principles of NRGCOM.

With approval from the Chamber of Deputies, Lex OZE 3 now moves to the Senate and subsequently to the President for ratification. Once finalized, its provisions are expected to come into effect in mid-2025. This timeline is crucial for enabling projects like NRGCOM to continue breaking down barriers to renewable energy development and energy community formation. By providing a clear legislative framework, the amendment supports the green transition and the advancement of renewable energy across the Czech Republic and the broader Danube Region.

The Lex OZE 3 amendment, recently approved by the Czech Chamber of Deputies, has been met with overwhelmingly positive responses from energy experts. According to Michal Macenauer, Strategy Director at EGÚ Brno, the legislation represents a significant step forward for Czech energy by formalizing standalone battery storage and enabling flexibility aggregation, key innovations for stabilizing the grid and attracting investments in modern technologies.

Jan Fousek, Director of AKU-BAT, emphasized that this long-awaited reform finally implements aspects of the European directive on energy, which should have been transposed four years ago. He hailed the approval as a long-overdue step toward modernizing the Czech energy sector after years of stagnation.

Štěpán Chalupa, Chairman of the Renewable Energy Chamber, praised the legislation for introducing flexibility rules, simplifying permitting for renewable projects, and improving cost-effectiveness for new clean energy sources. He highlighted these measures as essential for advancing renewable energy development.

For the Union of Community Energy (UKEN), the amendment’s strengthened protections for energy-sharing participants are particularly noteworthy. Eliška Beranová, a lawyer for UKEN and Frank Bold, welcomed new rules that prevent traders from restricting or unfairly pricing electricity-sharing agreements, creating fairer conditions for community energy initiatives. These changes are expected to significantly enhance the growth of shared renewable energy projects in the coming years.

The passage of Lex OZE 3 is more than just a legislative milestone; it represents a shift toward a sustainable energy future. It modernizes the energy sector, supports renewable energy development, and empowers communities to take an active role in the energy transition. For NRGCOM, this is a validation of its mission and a signal that conditions are becoming increasingly favorable for achieving its goals.