Petr Michal: We need more solar panels on apartment buildings. New energy communities are meant to make this possible.

The government will soon discuss another amendment to the Energy Act, this time called Lex OZE II. The amendment is crucial for the development of community energy and energy communities in Prague and other large cities. Due to insufficient legislation, family homes still dominate solar energy over apartment buildings, which is why photovoltaics are not expanding quickly enough.

The difference in the expansion of photovoltaics between family houses and apartment buildings is primarily caused by the fact that there is currently no legislation allowing the use of energy from panels for apartment buildings with multiple electricity meters. In the 2021 Climate Plan, the Prague City Hall commits to installing 20,000 photovoltaic panels on building roofs by 2030.

Currently, however, only about a thousand panels are in preparation, and only fifteen buildings have been completed. This is a tragic outcome at a time when billions are being invested in community energy in foreign capitals. Among the most advantageous places to install photovoltaics are precisely panel apartment buildings, where almost half of Prague’s households live.

The situation promises to be resolved by the amendment to the Energy Act. It should enable the sharing of energy through the distribution network and thus facilitate the involvement of energy consumers in its production. It introduces energy communities and renewable energy communities whose main purpose is not to make a profit but to provide benefits to their members or in the territory where they operate.

Effective control of the community is ensured by at least a two-thirds majority of all member votes. The amendment is expected to come into force next year. This is truly the absolute deadline for managing the energy transition in cities.

A huge advantage that these communities could also use is the relatively new possibility of installing a small photovoltaic power plant with a capacity of up to 50 kilowatts without the need for a building permit or a license to produce electricity. Such capacity corresponds roughly to the electricity consumption of an average apartment building.

Strengthening community energy in large cities is crucial right now, as the energy crisis has stirred up energy prices and at the same time revealed how difficult it is to keep electricity and heat prices balanced. In connection with the crisis, households have also started to save significantly on energy.

A survey conducted this year by the Prague Chamber of Commerce in cooperation with the STEM agency also showed that there is room for improvement in apartment buildings in the area of heat supply. More than a third of residents in apartment buildings rely on coal and other heating plants located outside the city for heat supply. However, this carries several disadvantages, such as significant heat loss during transport.

Given the long-term shift away from energy sources such as coal, it is necessary to seek a path to affordable energy, especially in the mentioned energy communities. These can be a local source of energy for our businesses and households in Prague.

The author is chairman of the board of the Prague Chamber of Commerce and partner at the law firm Císař, Češka, Smutný

Written for E15.cz, May 26, 2023