Changes to the Czech Energy Act could see the launch of GO auctions at the beginning of 2026, which will offer GOs from both subsidised and unsubsidised production devices. The amendment has gone through all the stages of the legislative process, and the bill was published in the Official Journal. Currently, secondary legislation is under preparation.

Michal Puchel, Chairman of the Board of OTE, the Czech electricity and gas market operator, commented in a press release:

Market impact

The move could inject several TWh of RES-E GOs into the market, according to local market players. OTE is currently assessing supported GO volumes, according to Veyt intelligence.

In the 2024 disclosure cycle, Czech supported and non-supported RES-GO cancellations increased 15 % year-to-year, reaching 6.2 TWh. At the same time, RES-E GO supply deviated downwards from the regular issuance patterns, with only 1.6 TWh issued compared to 6.48 TWh the year before. This meant that the country had to import 4.6 TWh of RES-E GOs in 2024.

The new auctions could help satisfy internal GO market demand. Veyt’s base case forecasts domestic RES-E GO demand to reach 7.1 TWh and 7.4 TWh during the 2025 and 2026 disclosure periods, respectively, and supply to rise to 6.5 TWh and 7.6 TWh during these calendar years. For more country-level GO statistics data, consult the country pages on our platform.

Czech GOs are sometimes traded at a premium when offtakers want to ensure geographical matching. In the European legislation, geographical correlation is mandated for hydrogen producers. On the voluntary side, geographical matching was introduced in the SBTi’s recently published draft Corporate Net-Zero standard, although the level of granularity (i.e. bidding zone or national level) is not specified.

The country has a state aid for indirect emission costs that incentivises market participants to procure GOs to qualify for partial compensation incurred in the EU carbon market. Czechia had 23 beneficiaries that received EUR 60 million in 2023, according to the latest official data. Veyt identifies state aid EU ETS costs as one of the demand-side drivers responsible for growing RES-E GO cancellations since 2020.

The Czech government does not provide state aid for reduced electricity levies.

For a full overview of countries with state aid schemes, consult Veyt’s analysis on the indirect emissions scheme here and on the electricity levy reduction scheme here.