Renewable energy sources (wind, solar, hydroelectric, ocean, geothermal, biomass and biofuels) are strongly regulated by the EU. In 2023, the co-legislators increased the EU’s renewable energy target for 2030 to 42.5%, with the intention of reaching 45%, with the Czech Republic pledging its national contribution to this. In the Czech Republic, the basic legislative document in the field of energy efficiency and energy savings is Act No. 406/2000 Coll., on Energy Management, as amended, which implements most of the EU directives dealing with the use of renewable energy sources. The current EU and Czech strategy follows the path of incentives for renewable energy use rather than mandating strict requirements.

Under the Act on Supported Energy Sources (No. 165/2012 Coll.), several incentives are available to producers of energy from renewable or secondary sources, including cogeneration. These promotions include feed-in tariffs, auction bonuses and green bonuses. The Energy Regulatory Office determines the feed-in tariffs for facilities generating electricity from renewable sources on an annual basis and in advance for the next calendar year, and separately for individual types of renewable energy sources. However, as far as electricity generation from renewable sources is concerned, support is only available with respect to plants put into operation before the end of 2021.