EU approves aid for 1.5 GWh storage rollout in the Czech Republic

The European Commission (EC) has authorized a €279 million ($303 million) Czech state aid scheme to support investment into electricity storage facilities and foster the transition towards a net-zero economy.

In an announcement released on March 7, 2025, the executive arm of the European Union said that the Czech scheme will support the installation of at least 1.5 GWh of new electricity storage facilities.

The measure will be open to all storage technologies directly connected to the transmission network or distribution network. It will support only newly installed storage facilities.

The aid shall take the form of direct grants. The total grant amount shall not exceed 50% of the investment cost of supported projects. The aid shall be granted no later than December 31, 2025.

The commission concluded the Czech scheme is “necessary, appropriate, and proportionate to accelerate the green transition” and facilitate the development of certain economic activities.

The Czech scheme was approved under the European Union’s state aid Temporary Crisis and Transition Framework, which was adopted by the European Commission in 2023 and later amended in 2023 and 2024.

The scheme will be financed fully by the European Union’s Modernization Fund, which aims to modernize energy systems and improve energy efficiency on the block’s soil.

Most recently, the EC approved a similar aid to Poland. The €1.2 billion scheme authorized in October 2024 will support the installation of at least 5.4 GWh of new electricity storage facilities. In December 2023, the EC approved, under EU State aid rules, a €17.7 billion Italian scheme to support the construction and operation of more than 9 GW/71 GWh of energy storage.