Czech Republic 2021 Energy Policy Review

The International Energy Agency (IEA) regularly conducts in-depth peer reviews of the energy policies of its member countries. This process supports energy policy development and encourages the exchange of international best practices and experiences. Fossil fuels, notably coal, still dominate the energy and electricity generation mix of the Czech Republic, but new climate targets at the European level will make coal less and less competitive. Therefore, the question is no longer if, but when, coal will exit the country’s energy mix. To boost investor confidence and ensure adequate electricity generation up to 2030 and beyond, the government will need to establish a firm pathway for phasing out coal. The phase-out of coal use and mining also poses important economic and social challenges, which the government is currently addressing by providing support for the economic restructuring and fair transformation of mining areas. Although the Czech Republic has decoupled economic growth from energy consumption since 2009, the country’s energy intensity remains above the IEA average. This highlights the need to make energy efficiency the “first principle” of energy policy making. This report includes a series of recommendations to support the Czech Republic’s efforts to tackle these challenges and to meet its energy and climate goals.

Published on October 21, 2021

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