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Lex RES III: Innovations in Electricity Sharing in the Czech Republic (Part 1)

Lex RES III: Innovations in Electricity Sharing in the Czech Republic (Part 1)

The Energy Act has been modernised once again with the Lex RES III amendment, introducing new rules for electricity storage, consumption, and production management.  This amendment brings new opportunities for innovative energy services and new energy projects, aiming to increase efficiency in electricity management, enhance consumer protection, and move towards more sustainable energy practices. We are bringing you a series of articles that will introduce you to the new changes. Today, we focus on the main elements of the amendment: electricity accumulation, grid flexibility, and flexibility aggregation. The amendment has already been signed by the Czech President, with most of Lex RES III set to take effect on 1 August 2025, although its key parts—accumulation, flexibility, and flexibility aggregation—will take effect later.

Electricity accumulation involves delaying the final use of surplus electricity to a later time than when it was produced or converting electricity into a form of energy that can be stored. This stored energy can be used later or converted back into electricity during periods of high demand or low production. This process helps balance fluctuations in renewable energy production.  The amendment introduces accumulation as a new licensed activity in the energy sector, removes the obligation to use only batteries connected to the energy production source, and allows standalone batteries to be connected to the grid. The part relating to accumulation will take effect on the first day of the seventh calendar month after the amendment publication, likely on 1 October 2025.

Flexibility refers to the ability of energy producers and consumers to adjust their electricity consumption or production in response to grid needs. This means they can decrease or increase their electricity offtake or supply according to current requirements, helping maintain grid balance. Flexibility benefits not only grid operators but also users, who can take advantage of lower electricity prices during surplus periods.

Flexibility aggregation will enable the coordination of electricity production and consumption according to current demand across the entire grid.  An aggregator pools the flexibility provided by electricity market participants at delivery points. This means even small sources, including households with photovoltaic systems, can participate and contribute to balancing electricity price fluctuations during peak demand times. The aggregator collects flexibility options from multiple market participants, combines these flexible capacities, and trades them on the electricity market or offers them to distribution and transmission system operators for grid management. Flexible electricity consumption or production can be activated based on current market needs or grid stability. It is important to note that aggregators will need to obtain a licence to trade electricity.

However, practical implementation of these measures faces certain challenges. The effective functioning of flexibility aggregation requires immediate and precise data on energy production and consumption, which is not yet fully ensured in the Czech Republic.  The still-developing Energy Data Centre will play a crucial role in this regard. For the time being, the possibility of independent flexibility aggregation for all market participants has been postponed.

We are eager to discuss this issue with you in detail, answer any questions you may have, and assist you throughout the process of correctly and timely setting up the new elements introduced by Lex RES III. Whether it involves electricity accumulation, the use of flexibility, or flexibility aggregation, we will help you with registration, obtaining the necessary licences, and creating appropriate contractual and operational mechanisms. Our goal is to ensure that the implementation of these measures proceeds smoothly and brings you maximum benefits within the modernised energy sector.

Key contacts at HAVEL & PARTNERS:

Robert Porubský, Partner

Ivo Skolil, Managing Associate

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