Energy Governance in the Czech Republic

Abstract

Unlike many of its fellow EU member states, the Czech Republic’s vision for its energy future does not include transition to renewable energy. Instead, it embraces the goal of (partial) decarbonization that is to be achieved via technologically neutral tools. Technological neutrality is an important concept for the Czech energy decision-makers since it allows for the pursuit of their preferred decarbonization strategy: further expansion of nuclear energy. Seen from a general perspective, the country’s approach towards energy governance has been shaped by the its industrial and engineering tradition, deeply internalized liberalization paradigm, and recently acquired mistrust towards large-scale deployment of renewable energy sources – all of which are driving forces that would be difficult to overcome should a transition towards renewable energy ever take place in the Czech Republic.

The country’s energy strategy can be described as an inward-looking, status quo policy. It endeavors to preserve the existing energy system that the decision-makers consider stable, predictable, and secure and that best reflects their preference of an energy-only market on which domestic sources such as coal and domestically sourced engineering solutions such as nuclear compete with one another to deliver reliable and affordable energy to the nation. This strategy is now eroding, mostly as the result of external factors, such as the increased emphasis on environmental sustainability in the European energy policy, rapid development in renewable energy technology, and extensive deployment thereof in neighboring Germany. Altogether, these factors have shaken the established market arrangements and, in turn, traditional energy policy principles. Hence, the future shape of the Czech energy landscape will emerge from the clash between energy transition-promoting external pressures and pro-status quo domestic actors who currently dominate the country’s energy politics.