Czech solar support cut to impact 7.5 MW of Pacifico Renewables’ portfolio

Changes in the law on supported energy sources in the Czech Republic, voted by parliament last week, will impact all four solar farms of Pacifico Renewables Yield AG (ETR:PRY) in the country, the company said.

The installations have a combined capacity of 7.5 MW

From 2022, the company’s Czech solar plants will see an additional solar levy of 10% charged on their "Green Bonus" or feed-in tariff. Pacifico Renewables expects the levy’s effect in 2022 to be offset by higher prices for the direct sales component of the "Green Bonus" which are set by annual power purchasing agreements.

The changes also provide for a target internal rate of return (IRR) of 8.4% to 10.6% for renewable energy plants over their lifetime, which, Pacifico Renewables said, is better for solar generators than a previously proposed 6.4%.

This provision could lead to additional support reductions following the results of a survey to determine the IRR in different renewable energy sectors.

Pacifico Renewables said the retroactive cut of existing subsidies confirms its strategic focus on further diversifying its portfolio to manage political and meteorological risks.

The company currently has a portfolio of 104.2 MW of wind and solar power plants in Germany, the Czech Republic, Italy and the Netherlands.

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