The Czech Republic and Slovakia are looking for a way out of the energy price crisis

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Only recently did many Czechs and Slovaks switch from coal to natural gas. Now the war in Ukraine is causing a renewed rethink. Heat pumps could be the solution.

Czech Republic and Slovakia have so far relied on natural gas – now they have to rethink

The Czech Republic and Slovakia have been relying on natural gas for decades. Until now, it has been regarded as a guarantee for affordable, low-maintenance and relatively environmentally friendly heating of houses and apartments. In the Czech Republic, a subsidy program financed by the European Union supported the transition from coal to natural gas, which had previously been the dominant use /p>

However, Russian aggression against Ukraine, uncertainty about the continuation of gas supplies from Russia and the huge increase in the price of natural gas are forcing Czech and Slovak households and industry to look for a new alternative. 

Empty gas storage – cold apartments?

The Czechs and Slovaks have in common – after 74 years in the common state of Czechoslovakia – their extreme dependence on gas supplies from Russia. Both get almost 100 percent of their gas from there. But the European Union wants to reduce dependency and this raises the burning question: How should households be heated next winter and how should companies be supplied with energy?

An indication that the supply situation is already deteriorating are the new gas advance payments for 2023, which Czech households have already received and which amount to several times what they had to pay in previous years. For a smaller family home, that's between 200 and 300 euros a month, which is above the socially acceptable level, especially for poorer Czechs and Slovaks. And it could get even worse.

Vaclav Bartuska is Czech Republic's Special Envoy for Energy Security

“If Russian gas supplies are stopped now, before the summer, it will be very difficult to fill the gas storage facilities in Europe, because it is impossible to replace 40 percent of gas supplies from Russia at once,” said Vaclav Bartuska, Czech Envoy for Energy Security , opposite DW. “The problem is actually similar in Germany, the Czech Republic and other countries: households and critical infrastructure would be among the last areas where the gas supply would be restricted anywhere,” he adds.

Heat pumps as Way out

One possible solution are heat pumps. They are currently in demand by Czech households on an unprecedented scale. Today, running a heat pump is between 20 and 30 percent cheaper than gas. Another argument in favor of heat pumps is the fact that alternatives such as coal or wood have increased by 20 and 66 percent more expensive.

In addition, the Czech state covers up to half of the costs, and in the case of socially disadvantaged households even up to 95 percent, with the maximum subsidy being around 4,000 euros. Czech companies that sell and install heat pumps report a surge in interest compared to 2021. Many are already busy for months.

An air heat pump in front of a residential building in Germany

“After Russia's invasion of Ukraine, there was a dramatic increase in interest in heat pumps, demand has increased almost tenfold compared to spring 2021,” said Marek Blaha, Managing Director of IVT Tepelna cerpadla, a company that produces thousands of pumps annually installed, opposite the news portal idnes.cz. According to Energy Security Ambassador Bartuska, there is enough electricity in the Czech Republic that heat pumps need: “Czech Republic even has an electricity surplus, we currently export around 10-12 terawatt hours per year.”

Ronald Izip, Editor-in-Chief of the influential Slovak eco-weekly Trend

In Slovakia, the problem of switching households to heat pumps is more complex. “The state recently announced a subsidy program for households to support heat pumps. There is great interest – but only 15 million euros are available in the subsidy program. And without state support, the acquisition costs are not affordable for most households”, Ronald Izip, editor-in-chief of the business newspaper Trend, told DW. “That's why most households continue to rely on natural gas as their main form of heating.”

Thermal insulation as another option

Another way to save on heating costs is to better insulate buildings. But both the Czech Republic and Slovakia suffer from a lack of insulation manufacturers and correspondingly high insulation costs. Even if state subsidies can be claimed, high costs of several tens of thousands of euros remain for the citizens.

Economic analyst Lukas Kovanda advises the Czech government

According to the Czech economist Lukas Kovanda, a member of the National Economic Council of the government in Prague, buying a heat pump is now more profitable than building insulation. “By buying a pump, you also eliminate the possible inconveniences associated with insulation, such as mold growth – if the wrong type of styrofoam insulation material is used,” Kovanda told DW. However, the Czech Ministry of the Environment has launched a special program for socially disadvantaged households so that they can at least partially isolate their homes.

“The program is aimed at small measures, such as insulating the roof, the attic or selected outer walls or replacing some of the windows and doors. People should be able to apply for the money easily, without complicated forms,” ​​said the responsible Minister Anna Hubakova. Around 40 million euros have been made available for the program so far. The Slovakian government is also focusing on building insulation. “The insulation will be funded with 500 million euros from the EU economic stimulus program. The program will start in September and it is expected that the interest of the Slovak citizens in the funding will be very high will,” says Ronald Izip.

Nuclear power – yes please

However, all these measures can only mitigate the impact of the energy crisis and the need for a fundamental energy transition away from dependence on Russian gas. In this regard, both the Czech Republic and Slovakia, in addition to looking for other energy sources, are also betting on nuclear energy, including the construction of new units in existing nuclear power plants – and renewable energy sources.

“The Czech state should expand the core tackle the problem, i.e. use all of our energy and available financial resources to build new nuclear power plants,” says the economist Kovanda. However, according to current plans, the EU country should not put new nuclear power plant blocks with an output of 2,400 megawatts into operation until 2036. And in Slovakia, the commissioning of the two new 940-megawatt units at Mochovce NPP, under construction since 2008 but still not operational, has been delayed. They are scheduled to go online in 2022 or 2023.