What is holding back the development of wind energy in the Czech Republic?

BHM group has been active in the field of renewable energy since 2013, completing numerous successful projects in six Central European and Scandinavian countries. In the Nordic countries, where the company has established itself as a key player in wind energy, it sees a model for the Czech Republic, which has not yet fully tapped into its potential in this sector.

Wind turbines could play a significant role in diversifying the Czech energy mix. Despite more challenging conditions, such as higher population density and lower average wind speeds, wind energy remains a promising sector in the Czech Republic. Given the goals for renewable energy development, there is considerable potential for wind farms that could contribute to the country's energy independence.

"While the demographic and climate conditions in the Czech Republic are not as ideal as in Finland, where the population density is only 18 people per square kilometer (compared to about 130 in the Czech Republic) and the wind speeds are more favorable at over 7 m/s, that does not mean wind energy has no place in Czechia," explains Michal Prause, Associate Partner at BHM renewables. "On the contrary, there is significant potential here; it just needs to overcome some obstacles.”

In Finland, BHM group, through its company Winda Energy, has already completed several projects with capacities in the hundreds of megawatts, collaborating with major global players such as BlackRock and Conquest. Currently, it is preparing to build about 1 gigawatt of wind energy capacity for 2025. Finland has become one of Europe's leaders in wind energy thanks to favorable tax policies and a stable business environment. Municipalities there directly benefit from the construction of wind farms, which facilitates their implementation. Another advantage is the connection to the liquid electricity market Nordpool, which allows efficient trading of generated electricity and ensures lower revenue volatility for investors.

For the Czech Republic, this means a need for investments in the transmission system to connect new wind farms. Cooperation with municipalities, which should benefit from the projects either through contributions to their budgets, revenue sharing, or cap on electricity costs of residents, is also crucial.

Another challenge is positive environmental study results, such as impacts on birdlife or noise levels. The public is understandably sensitive to environmental issues, and without these studies, projects cannot be successfully completed. For long-term sustainability, an active market for long-term renewable energy supply contracts with private companies and state support through auctions, such as contract-for-difference, is also important.

BHM group is closely monitoring the situation in the Czech Republic and actively working to overcome these challenges. "Despite the more complex conditions, we see great potential in the Czech Republic. Experience from Finland shows that wind energy can significantly contribute to energy security here as well," adds Prause.

If these issues can be resolved, wind energy in the Czech Republic could become an important and stable pillar of the energy mix, similar to other countries where it already plays a significant role.