As the European Union (EU) advances further toward its "carbon neutrality" goal, the Czech Republic, a major energy hub in Central and Eastern Europe, is accelerating the adjustment of its energy structure. In recent years, the installed capacity of renewable energy sources such as wind and solar power in the Czech Republic has continued to rise. However, challenges to grid stability caused by the intermittency and volatility of these energy sources have become increasingly prominent.
As a core tool for flexible regulation, Battery Energy Storage Systems (BESS) have assumed an ever more strategic role. In 2025, the Czech government officially rolled out a series of specialized regulatory policies for BESS, establishing a comprehensive framework covering three key dimensions-grid connection, subsidy support, and market access. These policies have cleared obstacles to the development of the energy storage industry and set a replicable practical example for energy storage regulation in Central and Eastern Europe.
I. Background of Policy Introduction: Dual Demands for Renewable Energy Integration and Energy Security
The Czech Republic's new regulatory policy for energy storage is no accident; it is an inevitable response to the current state of energy transition and practical needs. Internally, by the end of 2024, renewable energy had accounted for 38% of the Czech Republic's total electricity generation. Among these sources, solar PV installed capacity grew by over 25% annually. However, the lag in grid infrastructure upgrades has led to curtailment of wind and solar power in some regions. The peak-shaving and valley-filling capabilities of energy storage systems have become key to addressing this issue.
Externally, the EU's Net-Zero Industry Act requires member states to increase their energy storage installed capacity by 10 times (compared to 2020 levels) by 2030. As an important participant in the EU energy market, the Czech Republic must optimize its regulatory framework to meet this target. Additionally, fluctuations in energy supply caused by geopolitical conflicts have further prompted the Czech Republic to regard energy storage as a core means of enhancing energy self-sufficiency and ensuring energy security. These overlapping factors collectively drove the introduction of the 2025 regulatory new policy for energy storage.
II. Core Framework of the 2025 New Policy: Building an "Accelerator" for Energy Storage Development Through Three Dimensions
(1) Grid Connection: Standardized Norms Lowering Grid Access Barriers
Difficulties in grid connection and complex procedures were once major bottlenecks restricting the development of energy storage in the Czech Republic.
The 2025 new policy clarifies technical standards and procedural norms for grid connection of energy storage systems, with its core highlight being full alignment with EU technical frameworks. Under the new regulations, all grid-connected energy storage projects must comply with the technical requirements specified in PPDS P4 (Annex 4 to the Distribution System Operation Rules), which focuses on key indicators such as inverter voltage regulation, frequency response, and low-voltage ride-through capabilities to ensure compatibility between energy storage systems and the power grid.
Meanwhile, the new policy simplifies grid connection approval procedures. For distributed energy storage projects with a capacity of ≤10MW, a "filing system" has replaced the previous "approval system," shortening the approval timeline from 6 months to 2 months and significantly reducing project implementation cycles. Furthermore, grid operators are required to complete the planning and layout of national energy storage connection points by the end of 2025, clarifying connection capacities and technical parameters to provide clear guidance for project development.
(2) Subsidy Support: Tangible Funding Driving Large-Scale Market Development
To rapidly expand energy storage installed capacity, the Czech government launched a 2025 special subsidy program for energy storage construction-widely regarded as the "centerpiece" of the new policy. With a total budget of 27.9 million euros, the program aims to support the implementation of energy storage projects with a total capacity of 1.5GWh, covering various application scenarios including centralized, distributed, and user-side energy storage.
The core features of the subsidy policy are inclusiveness and flexibility: On one hand, the subsidy covers energy storage projects using all technical routes-whether lithium-ion batteries, flow batteries, or sodium-ion batteries-eliminating technical discrimination. On the other hand, the subsidy ratio can reach up to 50% of total project investment, with a maximum subsidy of 3 million euros per project. Importantly, subsidy disbursement is tied to the actual operational performance of projects, requiring a minimum annual availability rate of 90% after grid connection to ensure the efficient use of subsidy funds.
Additionally, subsidy applications adopt a combination of "first-come, first-served" and "merit-based support" principles, prioritizing energy storage projects paired with renewable energy to promote the development of "solar-storage integration" and "wind-storage integration" models.
(3) Market Access: Relaxing Entity Restrictions and Activating Diverse Business Models
By amending the Electricity Act, the 2025 new policy introduces major adjustments to market access rules for energy storage systems, with its core being breaking monopolies and opening up the market. Prior to the policy, energy storage projects in the Czech Republic were primarily dominated by grid companies and large energy enterprises, making it difficult for small and medium-sized enterprises (SMEs) and third-party service providers to enter the market.
The new policy clearly stipulates that energy storage systems may operate independently or be integrated with power generation, transmission, and distribution facilities. It also expands market participants to include ordinary users and independent energy storage service providers, completely breaking industry barriers. More crucially, the new policy grants clear property rights and transaction rights to energy storage project owners, allowing them to split, sell, or lease energy storage capacity to different entities such as grid companies and industrial users.
This has spawned diverse business models including capacity leasing, auxiliary services, and peak-valley arbitrage. For example, industrial users can reduce peak-hour electricity costs by leasing energy storage capacity, while grid companies can procure energy storage services to address grid load fluctuations-fully unlocking the commercial value of energy storage projects.
III. Impact of the New Policy Implementation: Industry Ecosystem Restructuring and Emerging Market Opportunities
(1) Direct Impetus for Industry Development
Following the implementation of the new policy, the Czech energy storage market has demonstrated a "dual growth in scale and quality." Industry forecasts suggest that between 2025 and 2030, the Czech Republic's energy storage installed capacity will increase from the current 0.3GWh to 3.5GWh, representing a compound annual growth rate (CAGR) of over 50%.
Distributed energy storage will be the main driver of this growth-benefiting both from the inclusiveness of the subsidy policy and the opening up of the SME and user-side markets, which will spawn a large number of small-scale energy storage projects (≤10MW).
At the same time, energy storage technology routes will become more diversified. In addition to mainstream lithium-ion batteries, long-duration energy storage technologies such as flow batteries and compressed air energy storage will gain more application scenarios. Particularly in grid-side peak-shaving projects, the advantages of long-duration energy storage will gradually become prominent.
(2) Empowerment Effect on Market Entities
For energy storage developers, subsidy support and simplified grid connection procedures have reduced project investment risks, attracting active participation from both international capital and local enterprises. Currently, international energy storage giants such as Tesla and CATL have begun to deploy in the Czech market, collaborating with local enterprises to develop large-scale energy storage projects.
For industrial users, the opening up of user-side energy storage and subsidy support have made energy storage investments economically viable. Through "self-consumption + peak-valley arbitrage," industrial users can reduce electricity costs by 15%–20%. It is expected that the installed capacity of industrial user-side energy storage will triple in 2025.
For grid companies, the large-scale application of energy storage systems will effectively alleviate pressure on grid investment. By procuring energy storage auxiliary services, grid companies can reduce capital investment in grid upgrades and renovations while improving grid operational efficiency.
(3) Profound Significance for Energy Transition
The rapid development of the energy storage industry will provide solid support for the large-scale development of renewable energy in the Czech Republic. It is projected that by 2030, renewable energy will account for over 50% of the Czech Republic's total electricity generation. Among other benefits, the peak-shaving capabilities of energy storage systems will increase the integration rate of solar and wind power from the current 85% to 98%.
Meanwhile, the flexible regulatory capabilities of energy storage systems will enhance the resilience of the Czech energy system, reducing reliance on fossil fuels such as Russian natural gas and improving energy self-sufficiency.
Additionally, the development of the energy storage industry will drive the coordinated upgrading of upstream and downstream industrial chains, spurring growth in related sectors such as battery manufacturing, system integration, and operation and maintenance services-creating numerous jobs and injecting new impetus into economic growth.
IV. Challenges and Outlook: Addressing Development Difficulties Amid Opportunities
Despite the strong impetus provided by the new policy, the Czech energy storage market still faces several challenges. First, while the cost of energy storage technology continues to decline, the economic viability of long-duration energy storage technologies remains to be improved, with some projects still relying on subsidies to achieve profitability.
Second, the recycling system for energy storage projects is not yet fully established, and technical standards and regulatory rules for battery recycling need further refinement. Third, cross-border energy storage transaction mechanisms have not been established, making it difficult to interconnect energy storage resources between the Czech Republic and neighboring countries such as Germany and Austria-limiting the overall utilization efficiency of energy storage systems.
Looking ahead, the Czech government will further optimize its energy storage regulatory system. On one hand, it is expected to introduce specialized regulations for battery recycling in 2026, establishing an "Extended Producer Responsibility (EPR) system" to improve the full-lifecycle management of energy storage. On the other hand, it will promote the development of cross-border energy storage transaction mechanisms at the EU level to achieve the optimal allocation of energy storage resources in Central and Eastern Europe.
For market participants, technological innovation and business model innovation will become core competencies. Enterprises need to focus on areas such as long-duration energy storage technology R&D, the coordinated optimization of energy storage and new energy, and the design of diversified service products to seize market opportunities.
Conclusion: The New Energy Storage Policy Ushering in a New Chapter for Czech Energy Transition
The implementation of the 2025 regulatory new policy for battery energy storage in the Czech Republic marks an important milestone in the development of the energy storage industry in Central and Eastern Europe.
Through a combination of policies-including standardized grid connection, targeted subsidy support, and open market access-the Czech Republic has successfully addressed institutional barriers to energy storage development and activated market vitality. Driven by both policy dividends and market demand, the Czech energy storage industry will enter a new phase of large-scale, high-quality development, providing strong support for the achievement of the EU's carbon neutrality goal.
Meanwhile, the Czech Republic's regulatory practices offer valuable experience for other Central and Eastern European countries. As regional energy storage markets develop in a coordinated manner, energy storage will become a core engine driving energy transition in Central and Eastern Europe, writing a new chapter in green and low-carbon development.
