Secondary Legislation on the Methodology for the Purchase of Electricity From Renewables and CHP

The New Energy Act of January 2001 (No.458/2000) and the Ministerial Decree (No. 252/2001 Coll.), which entered into force on 24 July 2001, regulate the production and purchase of electricity produced from renewable energy sources and combined heat and power (CHP) generation . The decree provided the framework for the administration of power and pricing and tariffs for electricity from renewable and CHP sources. The Act obliged transmission and distribution networks to purchase electricity generated by CHP. However, the buy-back tariff was not set by the New Energy Act so co-generators and buyers (distribution company or national grid) were required to negotiate prices. Along the same lines, the New Energy Act also contained an obligation of purchase for heat generated from CHP, industrial process, renewable energy and environmentally clean incineration. However, exemptions existed when end-consumer would not accept higher tariffs or for non-compliance with technical parameters.

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