cleantech in the czech republic

Clean Technology

Investment

Opportunities in the

Czech Republic

Vojtech Helikar

Investment Development Manager

Cleantech & Nanotechnology

© Copyright, CzechInvest 2011. All rights reserved

Reasons to Invest in the Czech Republic

Open and highly competitive economy

Excellent location in the heart of Europe with easy access to Germany

and other key European markets

High quality engineering at lower costs than comparable markets

Transparent System of Investment Incentives

High quality of life

Outline

1. Introducing CzechInvest

2. Czech Republic – Overview

3. National Renewable Energy Policy and Financial Support

4. Wind Energy in the Czech Republic

5. Biomass in the Czech Republic

6. Biofuels in the Czech Republic

7. Biogas in the Czech Republic

8. Photovoltaic in the Czech Republic

9. Hydro energy in the Czech Republic

10. Sourcing possibilities in the Czech Republic

RE INTRODUCTION Legislation

Total share of renewable energy sources in the Czech Republic:

-- Share of gross domestic power generation on consumption in 2011– 9.4%

-- Directive 2009/28/EC of the European Parliament requests Member

States to publish a forecast on the use of the flexible cooperation

mechanisms laid down in the Directive for achieving their targets The Czech Republic assumes that its share of renewable will reach 13%

-- National Action Plan for Renewables – approved on 25th September 2010

Source: National Renewable Energy Plan, 2011

Renewable Energy Sources Connected or Planned Power Plants

Connected to the

Grid

Agreement

Concluded

(powerplant not

yet built)

TotalSubject to

Negotiations

MW MW MW MW

Photovoltaic 1 906 698 2 604 -

Wind 213 802 1 015 1

Hydro 1 103 49 1 152 2

Power plants < 1 MW 137 25 162 2 Power plants =, >1 <10

MW 141 11 152 -

Power plants =, > 10 MW 825 13 838 -

Biogas 122 340 462 43

Mine Gas 42 - 42 -

Geothermal - 10 10 8

Biomass 111 89 200 29

Total 3 497 1 988 5 485 84

Total in

the

Czech

Republic

Overview as of 31 July

2011

Source: CSRES, 2011

1. Introducing CzechInvest

mission

CZECHINVEST Investment & Business Development Agency

to support foreign direct investment

to develop local companies

to implement business-development programs

to improve business environment

Ministry of Industry and Trade

CzechInvest Investment and Business Development Agency

Source: CzechInvest, 2011

CzechInvest Gateway to the Czech Republic

SERVICES FOR YOU COMPANY:

Information, Research and Advice

Tailor made visits to the Czech Republic

Dedicated project management team

Finding business properties

Supplier identification

Aftercare services

Access to investment incentives and EU funding

All our services are free of charge

MISSION:

Attract and support FDI

Improve business environment

Develop local companies


Czechinvest in Numbers 1993 – H1/2011

Mediated Projects (Total) : 1,565

New Jobs Created: 215,763

Total Investment Amount: 25,909 (USD million)

Prestigious Awards: 8

Best Website among All Investment Promotion Agencies 2009, World Bank

Inward Investment Team of the Year 2009, Business Destinations

Best practices in Promotion Award 2004, World Investment Forum

Best Advertisement Promotion Agency in the EU Accession Countries of 2002

European Investment Promotion Agency of the year 2001

European Investment Promotion Agency of the Year 2000


CZECHINVEST Investment & Business Development Agency


Regional and Foreign Offices

2. Czech Republic – Overview

Population 10.5 million

Labour force 5.3 million

Unemployment 9.0 %

GDP p.c. (PPS EU-27) EUR 20 000

GDP growth 2.3 %

Annual inflation 1.5 %

Average monthly wage

(nominal) EUR 947

USD 1253

Czech Republic Country Profile

Source: Czech Statistical Office 2011, Czech Ministry of Finance, 2011

Czech Republic Macroeconomic Data

Source: Patria, July 2011

GDP, growth rate

% 2.3 -4.0 2.2 2.5 2.4 3.0

GDP, USD bn,

current prices 216.5 187.6 191.8 213.2 229.4 239.6

Unemployment,

% of labour force 6.0 9.2 9.6 8.0 7.4 6.9

Current account

balance in % of

GDP

-0.6 -3.2 -3.8 -4.1 -4.1 -4.5

FDI inflow

in % of GDP 3.0 1.5 3.5 - - -

CZK/EUR average 24.9 26.5 25.3 24.3 23.7 23.2

Industrial output,

growth rate, % -1.5 -13.4 10.2 9.4 6.2 6.1

INDICATORS 2009 2010 2011f 2012f 2008

Note: f = forecast

2013f

PRAGUE

CESKE BUDEJOVICE

CENTRAL BOHEMIA

REGION

Astris Engergi

PRAGUE REGION

Sunline

Iberdrola

British Nuclear Fuels

SOUTH BOHEMIA REGION

Meinl Bank

NON-SPECIFIED

Itochu

Bewag

Tereos

Virtual Utility

Shriram EPC

Vyncke Corporation

Japan Wind Development

Donauer Solartechnik Vetriebs

USTI REGION

Koycera

KARLOVY VARY

PLZEN

USTI NAD LABEM

JIHLAVA

PARDUBICE

BRNO

LIBEREC

HRADEC KRALOVE

ZLIN

OLOMOUC

OSTRAVA

PLZEN REGION

Antaris Solar

OLOMOUC REGION

Onamba

Source: CzechInvest 2010, fDi Markets 2010

SELECTED INVESTORS

IN THE CZECH REPUBLIC

ZLIN REGION

Carl-Zeiss-Stiftung

CENTRAL BOHEMIA

REGION

BRNO REGION

Darfon Electronics

AU Optronics

Source: fDi Markets, 2012

ADVANCED RENEWABLE

ENERGY INTO CR

Top Companies by Capital Investment in USD

Company Source

Country 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total

Gehrlicher Solar Germany 624.60 624.60

Virtual Utility UK 524.00 524.00

WELtec BioPower Germany 269.70 269.70

Shriram EPC India 269.70 269.70

Conergy Germany 214.20 214.20

Juwi Germany 214.20 214.20

Itochu Japan 197.30 197.30

Japan Wind Deve... Japan 197.30 197.30

Carl-Zeiss-Stif... Germany 25.00 79.36 104.36

Eab Group Germany 77.30 77.30

Other Companies 29.00 18.90 16.50 59.40 3.60 30.30 3.60 39.60 29.88 230.78

Overall Total 29.00 567.90 16.50 59.40 160.26 424.90 273.30 1,110.60 299.58 2,941.44

Note: Renewable Energy; year 2011 – till November

Source: fDi Markets, 2012

ADVANCED RENEWABLE

ENERGY INTO CR

Top 10 Companies by Yearly Jobs Created

Company Source

Country 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total

Carl-Zeiss-Stif... Germany 300 400 700

Gehrlicher Solar Germany 345 345

Astris Energi Canada 190 81 271

Tereos France 170 170

Kyocera Japan 150 150

Virtual Utility UK 138 138

Conergy Germany 115 115

Juwi Germany 115 115

WELtec BioPower Germany 106 106

Shriram EPC India 106 106

Other Companies 0 0 101 33 8 213 8 42 7 412

Overall Total 190 669 101 203 408 213 114 617 113 2,628

Note: Renewable Energy; year 2011 – till November

3. National Renewable Energy

Policy and Financial Support

Czech National Renewable

Energy Policy

The Czech Republic is aiming for the mandatory target of a 13,5% share of energy from

renewable sources in gross final energy consumption by 2020. This includes a mandatory

target of a 10% share of energy from renewable sources in all kinds of transport in gross

final energy consumption.

Financial support

╌ Subsidy schemes for the introduction of renewable energy

and heat production for non-profit organizations, universities, cities, towns,

municipalities and districts

╌ Feed-in tariffs and green bonuses to subsidise renewable energy

production

╌ Tax exemptions or reductions and tax refunds

Source: National Action Plan for Renewable Energy, 2010

Feed-in tariffs – all the

electricity produced can

be sold to the relevant

distribution system

operator

Green bonuses:

premium on the market

price of electricity

produced from

renewable sources

Investment Policy in the

Czech Republic

OPEN PROGRAMMES

Financial support

Purpose of support

Financed

from the

budget

Max amount of

support

How the investor

qualifies

Application

Deadline Availability

Investment incentives

Support of production

(assets) National

no max

amount up to 40 % of

eligible costs

(30 % in

Southwest

region)

-- Min. investment in long-term

assets EUR 2-4 mil.

(depending on region)

-- At least half of the above

minimum investment must be

covered by own equity

-- At least 60 % from the total

investment must be made into

new machinery

No time limit

All regions

except

Prague

Potential programme

Support of R&D

activities (assets)

EU

(till 2013)

8 mil EUR

(200 mil CZK) up to 40 % of

eligible costs

(30 % in

Southwest

region)

-- Min. investment into long-

term assets EUR 400,000

-- Maintaining the investment

for 5 years

-- Financial health of the

applicant

September

30, 2011;

Another call

expected in

early 2012

All regions

except

Prague


4. Wind Energy in the Czech

Republic


Connected to the

Grid

Agreement

Concluded

(powerplant not

yet built)

TotalSubject to

Negotiations

MW MW MW MW


Wind 213 802 1 015 1

Hydro 1 103 49 1 152 2


MW 141 11 152 -

Power plants =, > 10 MW 825 13 838 -

Biogas 122 340 462 43

Mine Gas 42 - 42 -


Biomass 111 89 200 29

Total 3 497 1 988 5 485 84

Total in

the

Czech

Republic


2011

Source: CSRES, 2011

Wind Energy Production in

the Czech Republic

Source: ERÚ (Energy Regulatory Office), 2011

Feed-in Tariffs in the Czech

Republic

Wind power; Start of operation Feed in Tariffs

Premium Tariffs /

Green Bonus

CZK/MWh CZK/MWh

Wind power put into operation between

1st of January and 31st of December 2011 2230 / 90,96€ 1830 / 74,65€

Wind power put into operation between 1st

of January and 31st of December 2010 2280 1880













Wind power put into operation between

before 1st of January 2004 3550 3150

Source: Svaz podnikatelů pro využití energetických zdrojů; http://www.spvez.cz, 22nd of August 2011

http://www.spvez.cz/

Overview of Wind Farms in

the Czech Republic Situation in 2009:

Wind farms with

power higher than

100 kW

Source: ČSVE, 2011

Map of Wind Farms in the Czech Republic

The total of 93 wind turbines were operated in the Czech Republic at the end of

2010. Compared with 2009, the number increased by eight. The total installed

capacity of these resources by the end of the year amounted to 214.78 MW, which

is by 11.37% more YOY. Interest of investors in wind projects has been

continually growing since 2006.

Power utility CEZ (CEZ Group; ČEZ, a. s.) is not considering any other own

photovoltaic power plant projects and/or acquisitions of existing plants outside

its current portfolio. According to Mr. Kožušník, general director of CEZ Reneable

Energy, CEZ sees potential for the raising the volume of hydro sources, wind

energy and/or the usage of biomass.

Latest News concerning Wind

Energy in Czech Republic

Source: CIA, 21st July 2011

Source: CIA, 10th August 2011

5. Biomass in the Czech Republic


Connected to the

Grid

Agreement

Concluded

(powerplant not

yet built)

TotalSubject to

Negotiations

MW MW MW MW


Wind 213 802 1 015 1

Hydro 1 103 49 1 152 2


MW 141 11 152 -

Power plants =, > 10 MW 825 13 838 -

Biogas 122 340 462 43

Mine Gas 42 - 42 -


Biomass 111 89 200 29

Total 3 497 1 988 5 485 84

Total in

the

Czech

Republic


2011

Source: CSRES, 2011

Biomass in the Czech Rep.

Source: CZBIOM, 2011

Map of pellets, briquets, chips in the Czech Republic


Share of Biomass in CR since 1st of September 2011

Number of business establishments

Installed Capacity [MWe]

Source: Institute for Information on Education, 2011

Key information about biomass in the Czech Republic:

-- Gross electricity production from biomass amounted to about a 1000 GWh.

-- Heat production from biomass amounted to 16 000 TJ

-- Potential investment in the Czech Republic:

Farming fast growing trees

Transforming Coal power plants into Biomass power plants

Wood pellet/ briquette production

-- List of power plants in the Czech Republic owned by CEZ.


//DCCFS/public/Databaze slidu/Databaze slidu pro investory (MH)/English/Sectors (PAM)/Renewable energy and Cleantech/Docs/Power plants in the Czech Republic.xls

6. Biofuels in the Czech Republic

Biofuels in the Czech Rep.

Source: European Biodiesel Board, June 2010

-- The most common biofuels:

• Rapeseed oil methylester

• Bioethanol

-- Pure biofuels & high-biofuel blends

• Fuel E85

• Fuel E95

Source: European Commission, January 2007

-- The Czech Republic currently ranks 6th

highest among the EU25 in terms of

biodiesel production capacity.

With a capacity of 203 ktoe per year in

2006, it clearly surpasses the production

capacity of bioethanol (1.1 ktoe in 2005)

Biofuels in the Czech Rep.

Key information about biofuels in the Czech Republic:

-- There are 16 biodiesel plants in the Czech Republic (leader in # of sites)

-- There are 4 Czech producers of Bioethanol

-- Rapid increase in production, slow increase in biofuels consumption (we are not

reaching 60% of consumption in Germany/ France).

-- There is a common negative attitude against using biofuels of first generation.

-- Increase of MEŘO addition (up to 10% by 2020) into diesel -> higher

consumption & production of rapeseed oil.

7. Biogas in the Czech Republic


Connected to the

Grid

Agreement

Concluded

(powerplant not

yet built)

TotalSubject to

Negotiations

MW MW MW MW


Wind 213 802 1 015 1

Hydro 1 103 49 1 152 2


MW 141 11 152 -

Power plants =, > 10 MW 825 13 838 -

Biogas 122 340 462 43

Mine Gas 42 - 42 -


Biomass 111 89 200 29

Total 3 497 1 988 5 485 84

Total in

the

Czech

Republic


2011

Source: CSRES, 2011

Biogas in the Czech Rep.

Source: CZBIOM, 2011

Map of biogas plant in the Czech Republic

8. Photovoltaic in the Czech

Republic


Connected to the

Grid

Agreement

Concluded

(powerplant not

yet built)

TotalSubject to

Negotiations

MW MW MW MW


Wind 213 802 1 015 1

Hydro 1 103 49 1 152 2


MW 141 11 152 -

Power plants =, > 10 MW 825 13 838 -

Biogas 122 340 462 43

Mine Gas 42 - 42 -


Biomass 111 89 200 29

Total 3 497 1 988 5 485 84

Total in

the

Czech

Republic


2011

Source: CSRES, 2011

MAJOR SOLAR MODULES

MANUFACTRURES IN THE CR

THE PHOTOVOLTAIC SYSTEM

IN CZECH REPUBLIC

KYOCERA SOLAR EUROPE

-- leading company in photovoltaic technology

-- located in the town of Kadaň (Ústí region)

-- in operation since 2004

-- first European solar production plant of Kyocera

-- manufacturing of solar inverters and high efficiency multicrystalline photovoltaic modules

-- 306 employees

SOLARTEC

-- founded in 1993 by R&D workers of

former Tesla

-- located in the town of Rožnov (Zlínský

region)

-- in operation since 1994

-- production of solar cells from

monocrystalline silicon and modules

-- 100 employees

-- cooperation with universities since 1993

RWE SCHOTT SOLAR

-- founded in 2004 as subsidiary of RWE

Schott Solar GmbH

-- located in the town of Valašské Meziříčí

(Zlínský region)

-- new production facility, new modul lines

and start of production in 2005

-- production of crystalline solar cells and

modules

-- 300 employees

9. Hydro energy in the Czech

Republic


Connected to the

Grid

Agreement

Concluded

(powerplant not

yet built)

TotalSubject to

Negotiations

MW MW MW MW


Wind 213 802 1 015 1

Hydro 1 103 49 1 152 2


MW 141 11 152 -

Power plants =, > 10 MW 825 13 838 -

Biogas 122 340 462 43

Mine Gas 42 - 42 -


Biomass 111 89 200 29

Total 3 497 1 988 5 485 84

Total in

the

Czech

Republic


2011

Source: CSRES, 2011

Hydropower in the Czech Republic

Installed capacity [MWe]

Hydro power stations

Source: ERU (Energy Regulatory Office), April 2010

Number of

hydro power

plants

-- 1888 – first hydropower plant built in the Czech

Republic

MAJOR SOLAR MODULES

MANUFACTRURES IN THE CR

Source: CEZ, 2012

-- Tradition, long-time experience, technical skills

Hydropower in the Czech Republic

-- Industrial waste water treatment (WWT):

Production for mechanical pre-treatment,

technology

Supply for municipal, industrial and agricultural

WWT plants

Production and supply of aerating systems and

small waste water treatment plants

Filtration membranes – use new materials (nano-

materials)

Water supply stream, potable water production

Rebuilding or modernisation of municipal

Potential Investment in Water Management

10. Sourcing possibilities in the

Czech Republic

Energy Engineering sector Tradition & Progress

╌ Wide supplier infrastructure exists comprehensive of 500 engineering

suppliers and almost 300 000 workforce.

╌ Long tradition of Czech energy engineering from the beginning of 20.

century – supplier no. 1 of energy components for Soviet block – quick

restructuring during last 20 years

╌ Synergy across the whole engineering sector – Extensive collaboration

in contract manufacturing and design in electrical engineering (ABB,

Vishay, ON Semiconductor, GE)

╌ Fully – conected network of suppliers energy engineering due to

presence of big traditional engineering companies and new investment

during last years

╌ The machinery park was renewed in the massive investment wave

over the last 10 years

source: CzechInvest 2011

Local sourcing opportunities for overseas companies

╌ Experienced engineering suppliers base in metal processing (300

companies), plastic processing (150 companies), electro assemblies

(300 companies)

╌ Full scale of metal processing (machining, casting, stamping, forging,

surface treatment, tooling), plastic processing (inj. Moulding,

composites treatment) and electro assemblies (cable harnesses,

control units, PCb´s)

╌ Material for energy engineering is produced in the Czech Republic

directly

╌ Experience in quality standards is available for US QS


Czechinvest Sourcing Services for overseas companies

╌ Support of feasibility studies for local purchasing and local market

investigation

╌ B2B promotion, sourcing events organization, tailor-made supplier

forums

╌ Supplier identification and organization of business trips

╌ Mergers & Acqusition & Joint ventures target identification

╌ IT tool development for local sourcing http://suppliers.czechinvest.org

╌ Reference of U:S: based companies: Clipper Wind, Caterpillar, GE,

United Technologies


http://suppliers.czechinvest.org/

CzechInvest, the Investment and Business Development Agency, is an organization

of the Ministry of Industry and Trade of the Czech Republic

© Copyright, CzechInvest 2006. All rights reserved

Thank you for your attention.

Vojtech Helikar

Business Development Manager

Department of Investment Development

Phone: (+420) 296 342 809

Fax: (+420) 296 342 613

E-mail: [email protected]

www.czechinvest.org

Nanotech in the Czech Rep.

SEE YOU IN THE CZECH REPUBLIC !!!

cleantech in the czech republic

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