1. Why have you banned the connection of new environmentally-friendly power plants to the grid?

ČEPS has not banned the connection of new environmentally-friendly power plants to the grid. ČEPS only asked distribution companies by means of a letter of 3 February 2010 to suspend the issuance of positive opinions on new applications for the connection of non-controllable power plants (namely photovoltaic and wind power plants) to the grid. It was expected that this move would provoke a discussion between distribution companies, the Energy Regulatory Office (ERÚ), the Ministry of Industry and Trade, photovoltaic industry associations and other institutions concerned with the aim of setting safe and sustainable rules for the connection and subsequent operation of such power sources.

2. Why have distribution companies responded positively to your request?

Under the Energy Act (Act 458/2000), ČEPS is responsible for the safe and reliable operation of the whole of the Czech power system including the transmission system whilst following the rules for the international cooperation of the European interconnected systems. This means that ČEPS as the transmission system operator has to maintain the balance between electricity supply and demand at all times. The Czech power system comprises facilities for the performance of four basic functions: electricity generation (generating companies), transmission (ČEPS), distribution (ČEZ Distribuce, E.ON Distribuce and PRE Distribuce) and consumption.

ČEPS was attempting to draw attention to the potential risk to the safety and reliability of the power system if projects already approved are realised and the technical limit (“safe limit”) is exceeded. Exceeding the technical limit for power system control means a situation in which existing electricity sources are not sufficient to provide regulation power in order to cover outages and compensate for demand fluctuations and fluctuations in generation from photovoltaic and wind plants.

3. What further steps do you plan to take?

The current state of affairs shows that conceptual changes to the policy of support for electricity from renewable energy sources (RES) and its integration to the Czech power system are needed. Consequently, amendments to relevant legal regulations are the key next step. ČEPS is actively involved in preparing those changes which are associated with transmission system operator responsibilities, however, the final form of the policy will be decided by competent authorities. System operators (of both transmission and distribution systems) are responsible for setting technical conditions for the safe integration of electricity from RES to the system.

4. According to certain estimates made by environmental associations, the output of photovoltaic power plants will be lower than estimated by ČEPS; their estimates range from 1000MW to 1500MW. Aren’t ČEPS’s concerns about the safe operation of the power system somewhat exaggerated?

The total value of granted applications for the connection of photovoltaic and wind power plants amounted to 8063MW as at 31 January 2010 whilst the safe limit value of electricity produced by non-controllable sources (photovoltaic and wind power plants) in the Czech power system as calculated for 2010 is 1650MW. Even if some of these applications may be of speculative nature and all of the electricity is not generated at the same time, the applications granted represent an amount of power almost 5 times higher than the safe limit. Consequently, the concerns are not exaggerated.

5. You are calling attention to potential problems in the system. What problems do you have in mind?

ČEPS has a statutory obligation set by the Energy Act (Act 458/2000) to maintain the safe and reliable operation of the Czech transmission system and the Czech power system as a whole whilst following the rules for the international cooperation of the European interconnected systems. If all the photovoltaic and wind power plants under projects approved to date were integrated to the power system, the limit for the safe and reliable operation of the Czech power system (“safe limit”) would be exceeded. This would primarily cause problems in terms of system control and the balance between electricity supply and demand within the Czech power system; problems relating to transformation between the various distribution systems and the transmission system and problems concerning overall network transfer capacity would be of only a limited nature.

Daily electricity demand during winter amounts to approximately 10,000MW and falls to half of this value during summer weekends. Installed capacity of photovoltaic and wind power plants currently accounts for more than 500MW and 180MW, respectively. According to current information received from distribution system operators, positive opinions on the connection of photovoltaic sources to the grid issued by 31 January 2010 concern 5277MW of new installed capacity; the figure for wind farms amounts to 2786MW.

The ČEPS Control Centre is obliged to manage the operation of power stations in order to meet real-time electricity demand throughout the country. Electricity demand is unstable and varies all the time. For this reason, sufficient regulation power must be available at any moment. The output of photovoltaic and wind plants depends on potentially changeable weather conditions and, consequently, cannot be used to meet real-time electricity demand, if need be. The output of a certain number of these electricity sources can be absorbed by the power system; however, the limit values of electricity output from RES which can be absorbed vary according to the yearly and daily loads on the system.

Physical laws, notwithstanding efforts to adapt them to the wishes of various individuals, are insurmountable. The amount of electricity generated cannot exceed that consumed. We are not yet able to store electricity in an efficient way and in the sufficient amount.

6. Why do you intend to switch off photovoltaic plants? The media have informed the general public that it will happen during the summer of 2011.

ČEPS has no intention of switching off, i.e. disconnecting photovoltaic plants from the grid unreasonably. The Company has a statutory obligation set by the Energy Act (Act 458/2000) to maintain the safe and reliable operation of the Czech transmission system and the Czech power system as a whole whilst following the rules for the international cooperation of the European interconnected systems. ČEPS is further responsible for maintaining the balance between electricity supply and demand at all times. In a situation in which the safety and reliability of the Czech power system is jeopardized and all other control measures have been applied, ČEPS is authorised to use all relevant measures to avoid a state of emergency, including the restriction of power output from photovoltaic and wind power plants.

7. Why wouldn’t you rather switch off coal-fired or nuclear power stations?

If certain electricity sources need to be switched off, i.e. disconnected from the grid, in order to maintain the safe and reliable operation of the power system and to avoid or manage a state of emergency, we have to act in accordance with current legislation, i.e. firstly restrict output from conventional power stations or disconnect (switch off) such power stations, if appropriate in terms of technology and safety, up to the safe limit for power system control. Only after all these measures have been applied, photovoltaic and wind power plants may be disconnected from the grid.

8. Isn’t ČEPS behind the times in terms of the further development and upgrade of the transmission system?

The limiting factor for renewable energy sources (RES) integration is not the transfer capacity of the transmission system (power lines, transformer stations and other facilities) but problems concerning system control and the balance between supply and demand within the Czech power system; this depends on the generating plant mix which cannot be influenced by ČEPS.

9. Why don’t you export excess electricity?

Distribution companies or the transmission system operator are not authorised by law to trade in electricity. Exporting electricity from photovoltaic and wind power plants is possible and might contribute towards solving the problem. ČEPS is attempting to promote a modified purchase model which would support trading in this type of electricity.

10. You are calling attention to the current state of affairs in which the Czech Republic has become a “photovoltaic paradise” which is attracting foreign investors. Why?

Two factors are responsible for this state of affairs: 1) a significant decrease in investment costs for photovoltaic sources, and 2) feed-in tariffs (purchase prices) for electricity from RES in the Czech Republic which are among the highest in Europe.

11. Connection of electricity output from renewable energy sources to the grid poses no problems in other European countries. Why is it a problem in the Czech Republic?

The opposite is true. Relevant support for electricity from RES and its safe integration to the system is one of priority issues both in the EU as a whole and in many individual Member States.

12. Until when will the "suspension" concerning the handling of applications for the connection of photovoltaic or wind plants to the grid be in place?

The issuance of positive opinions on new applications for the connection of photovoltaic and wind power plants to the grid has been suspended until relevant legislation is amended and technical conditions for the connection and operation of non-controllable power plants are fulfilled. ČEPS, having the statutory obligation to maintain the safe and reliable operation of the Czech transmission system, asked distribution companies to suspend the issuance of positive opinions on new applications for the connection of non-controllable power plants to relevant distribution systems in order to avoid the potential risk to the safety and reliability of the Czech power system. The key risk factor is the exceeding of the safe limit for electricity output from wind and photovoltaic power plants, i.e. a situation in which the total output from plants under projects already realised plus the output from plants for which positive opinions on new applications for the connection to the grid were issued are several times higher than the limit for the safe and reliable operation of the Czech power system (“safe limit”).

13. Why does the “suspension” also concern small power sources, such as photovoltaic panels on the roofs of homes?

All ČEPS’s recommendations to investors and distribution companies were based on limits set for total safe output from non-controllable renewable energy sources to the Czech power system. In terms of maintaining the balance between electricity supply and demand within the Czech power system, which is ČEPS’s statutory obligation, only total output from non-controllable renewable energy sources has to be considered, regardless of the output values of individual sources.

When comparing the 1650MW safe limit value of available capacity from non-controllable RES (photovoltaic and wind power plants) in the Czech power system which was set for 2010 to 2012 with the 8063MW of installed capacity at photovoltaic and wind plants for which positive opinions on applications for the connection to the grid were issued, we can see that the transmission and distribution system operators have no tool to handle applications for the connection to the grid differently for different RES plant sizes (output values) until an agreement is reached on the methods (both technical and legislative) of the control of such plant output to the grid and other legislative measures are introduced.

14. Regulation No. 51/2006 concerning connection to the grid went into force on 1 April 2010. Why has the “suspension” not yet been revoked?

The Regulation on connection to the grid (Regulation No. 51/2006, as amended) tackles only one specific problem: a possible restriction of speculative applications. The “suspension”, however, can be revoked only after conceptual changes to the policy of support for electricity from RES and its integration to the Czech power system are introduced.