Wind turbines can represent an opportunity for municipalities that goes well beyond simply supporting renewable energy sources. In addition to the potential for generating revenue for local budgets, they offer a chance to actively participate in community energy initiatives and to make use of new legislative instruments designed to accelerate permitting processes. However, successful implementation depends on addressing all legal aspects of the project thoroughly from the outset – from contractual arrangements with investors, through the preparation of generally binding local regulations, to effective communication with the public.
Revenue for municipal budgets
As of 1 August 2025, a new levy has been introduced, payable by operators of electricity generation facilities using wind energy.
The levy is CZK 50 per 1 MWh of electricity generated. For a model wind turbine with an installed capacity of 4 MW and annual production of 10,000 MWh, this could represent approximately CZK 500,000 per year.
The proceeds from this levy accrue primarily to the municipality, in the territory of which the wind turbine is located, with a smaller portion allocated to the administering authority, typically the municipality with extended powers.
At the same time, municipalities have some scope to influence the final amount of the levy through generally binding local regulations. In addition to the statutory levy, they may agree on a separate contractual contribution with the investor. Properly distinguishing between the statutory and contractual regimes can be crucial for municipalities.
Participation in community energy
A municipality does not have to be merely a recipient of the levy. It may also consider developing and operating its own wind turbine and using the electricity generated within a community energy scheme, for example, to supply a school, the municipal office, local services or other municipal buildings.
Such an approach can provide not only access to electricity from a renewable source but also potential savings on the cost of purchased electricity. The actual benefits, however, will always depend on the chosen model, the technical solution, and the applicable sharing arrangements.
For a more detailed analysis of the legal framework for community energy, please refer to our previous articles 1, 2.
Faster project permitting
The development of wind turbines may also be facilitated by new legislation on acceleration zones, currently in the form of a working draft prepared by the Ministry of Regional Development. The proposal envisages 80 designated areas for wind energy (for example, the Vysočina, Olomoucký and Zlínský Regions).
However, wind turbines exceeding 200 metres in height – and therefore offering the most attractive output – are envisaged in only 33 of these 80 locations.
It also remains the case that acceleration zones must be located at least 500 metres from residential areas.
The aim is to simplify and accelerate the permitting of renewable energy projects in areas that have been pre-assessed as suitable for such development. The designation of these zones does not, however, mean that construction will proceed automatically; projects will still need to go through the permitting process, albeit with certain aspects streamlined.
For a more detailed analysis of this topic, please see our earlier article.
Do not underestimate local referendums
The construction of wind turbines is often a sensitive issue in municipalities, and in recent months a number of local referendums have been held on the matter. Their outcomes have not been uniform: in some places residents have supported the projects, while in others they have rejected them.
If a municipality is considering using a local referendum to gauge support for a project, it should reflect this possibility in both the project timeline and the contractual documentation with the investor or contractor. Key obligations should be structured in a way that avoids exposing the municipality to unnecessary risks in the event of a negative referendum outcome.
How can HAVEL & PARTNERS help?
We provide municipalities with legal support across all key stages of the preparation and implementation of wind turbine projects, in particular in:
- Setting up the contractual framework with the investor – drafting or reviewing agreements on contractual contributions in addition to the statutory levy, and negotiating terms favourable to the municipality;
- Preparing generally binding local regulations – establishing rules relating to the level of the levy and its application within the limits set by law;
- Community energy projects – structuring the legal framework for the development and operation of a municipal wind turbine and for electricity sharing arrangements;
- Project permitting and acceleration zones – representation in proceedings before the relevant authorities and assistance in making use of accelerated procedures;
- Local referendums – legal assessment of the municipality’s approach and alignment of the project timeline with contractual documentation.
If a municipality is considering whether, and under what conditions, a wind turbine project may be beneficial, it is advisable to assess the project not only from a technical and economic perspective, but also from a public law, contractual and communication standpoint. Our team of experienced professionals is ready to support you throughout this process.
