EC greenlights EUR 1.2bn of Czech support for greener district heating

The European Commission (EC) on Friday announced approval under EU state aid rules for a EUR-1.2-billion (USD 1.3bn) Czech scheme to support green and more efficient district heating.

The programme will run until January 14, 2026 and will be financed by the EU Modernisation Fund. It will back the installation of new heat generation units using renewable energy or high-efficiency cogeneration to replace existing facilities, as well as the transition of existing heat generation units to biomass from coal.

The scheme is expected to lead to increasing the share of renewable energy production in the district heating sector by 8,022 TJ per year and cutting carbon dioxide (CO2) emissions by 889,550 tonnes per year.

“This EUR 1.2 billion scheme will contribute to greening the district heating sector in Czechia, by supporting the modernisation and replacement of existing heat generation units with more efficient and less carbon-intensive ones,” Margrethe Vestager, executive vice-president in charge of competition policy, explained, adding that the measure will contribute to achieving the EU Green Deal objectives and Czechia’s environmental targets.

(EUR 1 = USD 1.062)

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