Last modified: 2015-04-07
This paper focuses on the boom of photovoltaic electricity sector in the Czech Republic in years 2007–2010. According to the 2001 EU directive, a legislation supporting the renewable electricity production passed through the Czech parliament in 2005. It was not flexible enough to allow responsible institutions to change the guaranteed subsidies (feed-in-tariffs) significantly to react to the 2007–2009 fall of investment costs of the photovoltaic industry. As a result of this the installed output of photovoltaic power stations rose from 0,01 % of overall installed output in 2007 to 9,7 % in 2010. Legislation cut the feed-in-tariffs for new power stations strictly in 2010 and a retroactive tax was put on some of those already built.
Implementation of the photovoltaics resulted in various problems, including the legal and socio-political issues. Its economic effectiveness is also questionable. Moreover, the problematic case led to the decrease of subsidies to other renewable sources of energy and to some extent also to the negative perception of renewables as whole. Using the data from governmental agencies and public sources of information (laws, reports, statistical sources and media) this paper aims to describe the implementation process and discuss some potential consequences of the problematic realization of the subsidies. Though the Czech case was not intentionally labelled as “green growth” policy, it is framed as a part of green growth, due to being in accordance with its strong focus on the renewable sources of energy.