The Czech Republic, like other countries, had to cope with the effects of Covid-19 and the subsequent energy crisis triggered by Russian aggression against Ukraine. After economic stagnation in the first half of 2023, the economy is expected to pick up with an annual growth rate of over 2%. Inflation is expected to fall below 3% and the unemployment rate should also remain below 3%. Among EU member states, the country has the highest share of industry (including construction) in GDP at 30.7%.

 

General data		2022
Population	million	10.8
GDP	€ billion	276.2
Per capita GDP	€/person	25 500

Coal is the only significant indigenous energy resource in the Czech Republic; economically recoverable coal reserves are estimated to total 568.4 million tonnes. Brown coal, with recoverable reserves of 562.7 million tonnes, is mainly produced in north-western Bohemia, while hard coal reserves (5.7 million tonnes) are mined in northern Moravia. Hard coal is consumed locally at heat and power plants or at steelworks.

Total energy supply was 59.4 million tonnes of coal equivalent (Mtce) in 2022, comprising: 32.3% coal (19.2 Mtce total of which an estimated 5.0 Mtce was hard coal and 14.2 Mtce was brown coal), 22.7% oil (13.5 Mtce) and 15.2% fossil gas (9.1 Mtce). The energy mix also includes nuclear energy with an 18.5% share in 2022 (11.0 Mtce), and non-renewable waste which accounted for 0.8% (0.5 Mtce). Biofuels, solar, hydro and wind power supplied the 13.1% (7.8 Mtce) of renewable energy. Electricity exports were the balancing -2.8%.

The Czech Republic’s dependence on energy imports has been quite modest to date but is growing; 42.1% of energy demand was met by net imports in 2022. However, imports are structurally imbalanced with a nearly 100% dependency on imported oil and gas. A number of direct and indirect measures are being adopted to reduce dependence on energy imports, including increased energy efficiency, the promotion of renewable energy sources, and the efficient use of indigenous solid fuel resources, mainly brown coal.

In 2022, 43.8% of national gross electricity production of 84.8 TWh came from hard coal and lignite-fired power plants with a total net capacity of 8 450 MW. Fossil gas-fired power generation had a 5.1% share. Nuclear power plants supplied 36.6% of gross generation and 12.7% came from renewable energy sources including hydro. Pumped hydro and other sources, including plants running on gases from coke ovens and blast furnaces, accounted for the balance. After rapid growth from 2009 to 2011, output from solar PV has stagnated, with 2.6 TWh in 2022 when output from wind turbines was just 0.6 TWh.

There are five coal mining companies in the Czech Republic, namely OSTRAVSKO-KARVINSKÉ DOLY, the only hard coal producer, and four brown coal mining companies:

SEVEROČESKÉ DOLY, the biggest producer of brown coal – owned by ČEZ; VRŠANSKÁ UHELNÁ, with coal reserves to last until 2055, and SEVERNÍ ENERGETICKÁ – both part of SEV.EN ČESKÁ ENERGIE, and SOKOLOVSKÁ UHELNÁ, the smallest of the brown coal mining companies. All five are publicly listed or in private ownership. The majority state-owned utility company, ČEZ, is the largest coal consumer in Czechia and the most important supplier of electricity.

The Czech coal industry has played a significant role in the national economy for years and will undoubtedly continue to do so for years to come. In 2022, the share of coal in gross electricity production amounted to 44.1% (brown coal 40.6% and hard coal 3.5%). Even so, the Coal Commission has proposed to phase out coal in 2038, and the government manifesto recommends 2033. According to an ongoing update of the State Energy Policy, Czechia’s future energy mix will be based on nuclear and renewable energy sources.

Hard coal

The Czech Republic has 5.7 million tonnes of economically recoverable hard coal reserves, with the largest deposits located in the Upper Silesian coal basin. Having an area of 6 500 square kilometres, this coal basin ranks among the largest in Europe. A major part is located in Poland, while about one fifth (1 200 square kilometres) lies in the Czech Republic where it is called the Ostrava-Karviná basin (after the city of Ostrava and the town of Karviná). Here, OSTRAVSKO-KARVINSKÉ DOLY (OKD) extracts hard coal from a deep mine: ČSM in Stonava, with two operations in the northern and southern districts. It is the last active deep mine in the country. According to the company’s medium-term plan, ČSM will be operational until the end of 2025. In 2022, OKD’s saleable output was 2.1 million tonnes, with a workforce of 2 569 own employees and 730 contractors.

The thickness of worked coal seams at the ČSM mine ranges from 1.5 to 6.5 metres. Production at OKD is mainly by longwall cutters with shearer loaders, combined with controlled caving. The last longwall working with a plough finished in 2021. Raw coal is washed in the coal treatment plant and sold as coking or steam coal, based on its quality.

Brown coal (lignite)

The Czech Republic has 562.7 million tonnes of exploitable brown coal reserves. In addition to a coal basin in North Bohemia and another basin near the town of Sokolov, there are coalfields in the south of the country, although these are not economically viable. Production of brown coal totalled 33.4 million tonnes in 2022 providing an important contribution to the country’s energy supply.

The main brown coal deposit and the largest mining area, covering 1 400 square kilometres, is the North Bohemian brown coal basin, which is located at the foothills of the Krušné hory mountains, along the border with the German state of Saxony, in the vicinity of the towns of Kadaň, Chomutov, Most, Teplice and Ústí nad Labem. The coal seams in this area lie at depths of up to 400 metres and are between 15 and 30 metres thick.

In the central part of the North Bohemian brown coal basin, brown coal is extracted by two mining companies: VRŠANSKÁ UHELNÁ (VUAS) and SEVERNÍ ENERGETICKÁ (SEAS). Both are members of the vertically integrated energy company SEV.EN ČESKÁ ENERGIE (SEV.EN) and together employ 2 700 people for coal production out of a total group workforce of 3 262 in 2022.

VUAS extracts brown coal at the Vršany surface mine. Its coal reserves within existing mining limits have the longest remaining life of any in the Czech Republic. In 2022, VUAS extracted 7.8 million tonnes of brown coal.

SEAS exploits the ČSA surface mine that produced 2.4 million tonnes in 2022. The end date for mining at the ČSA mine is currently planned for 2025 or 2026, depending on market demand and the exploitation rate. For the rehabilitation of the ČSA mine, the Green Mine project is being prepared with a strategic, long-term revitalisation plan for the large areas affected by the mine. This project will transform the mining district into a modern location with high-tech industrial zones, smart residential development, renewable energy sources and new business activities.

SEV.EN operates two brown coal-fired power plants, Elektrárna Počerady and Elektrárna Chvaletice. The 820 MW Chvaletice power plant is the younger of the two power plants and comprises four units that can generate electricity for baseload or for peak demand by operating in two-shift mode (12 hours per day) with output ranging from 100 MW to 820 MW.

The 1 050 MW Počerady power plant is the largest brown coal-fired power plant in the Czech Republic. The plant has five pulverised-fuel boilers connected to condensing turbines.

Both of the SEV.EN power plants have been certified to provide balancing services for electricity grid stability and also for so-called island-mode operation. In the event of an emergency, operating in island mode can prevent blackouts.

SEV.EN also operates two combined heat and power plants, Teplárna Kladno and Teplárna Zlín, with a total production capacity of approximately 600 MW electrical and 1 300 MW thermal. The Kladno plant is a major heat and power producer in Central Bohemia, supplying heat to households and industrial customers in the Kladno region from its five blocks. The plant also plays an important role in stabilising the Czech power grid as it provides balancing services and serves as a potential back-up power source for the Prague metropolitan area. The Kladno and Zlín plants have been upgraded to burn biomass in the form of wood chips in addition to brown coal. More than 90 000 MWh of electricity was generated in 2022 using green fuel, for which the electricity and gas market operator (OTE) issued guarantees of origin certificates, thus rewarding this environmentally friendly way of generating renewable electricity.

The brown coal mining company SEVEROČESKÉ DOLY (SD), based in the town of Chomutov, operates in the North Bohemian brown coal basin, northwest of Prague. SD extracts brown coal at two sites, namely the Tušimice mine and the Bílina mine. A total of 17.8 million tonnes was produced in 2022, giving SD a 53% share in national brown coal production.

The Tušimice brown coal mine is located between the towns of Chomutov and Kadaň. In 2022, the annual production amounted to 8.6 million tonnes. After blending at the Tušimice coal preparation plant, the majority of the coal produced is supplied to the 800 MW Tušimice and the 750 MW Prunéřov power stations operated by ČEZ.

The Bílina brown coal mine is located between the towns of Bílina and Duchcov. In 2022, 9.2 million tonnes of high-quality, low-sulphur brown coal were produced and delivered to the modern 660 MW Ledvice power station, CHP plants, district heating plants, industrial users and households. In 2022, the SD group had a total workforce of 4 344.

Located in West Bohemia, in the western part of the coalfield below the Krušné hory mountains, the brown coal basin around the town of Sokolov is mined by SOKOLOVSKÁ UHELNÁ (SU). The company operates one surface mine, the Jiří mine. In 2022, its output was 3.8 million tonnes. Brown coal from the Sokolov area is mainly used for heat and power generation. The company’s coal gasification plant was closed in August 2020.

SU generates electricity and heat at its own CHP and GUD plants in Vřesová – they had a combined annual output of 1 500 GWh in 2022. Most of the heat produced is consumed by the company itself, although some is supplied to the towns of Karlovy Vary, Nejdek, Chodov and Nová Role. The 305 MW power plant Tisová generated 829 GWh of electricity and 548 TJ of heat in 2022. The company also pursues environmental activities, notably the reclamation of land affected by surface mining, as well as waste processing and disposal. SU’s operations employed a total workforce of 1 203 in 2022.

Czech Republic

Coal production, reserves and resources		2022
Hard coal saleable output	Mt	1.8
Hard coal reserves	Mt	1 401
Hard coal total resources	Mt	16 269
Brown coal saleable output	Mt	33.4
Brown coal reserves	Mt	2 087
Brown coal total resources	Mt	8 539

Saleable coal quality
Hard coal net calorific value	kJ/kg	24 000 ‑ 31 500
Hard coal ash content	% a.r.	8.1 ‑ 22.0
Hard coal moisture content	% a.r.	10.5 ‑ 13.0
Hard coal sulphur content	% a.r.	0.45 ‑ 0.60
Brown coal net calorific value	kJ/kg	11 860 ‑ 21 270
Brown coal ash content	% a.r.	5.6 ‑ 29.1
Brown coal moisture content	% a.r.	25.5 ‑ 36.0
Brown coal sulphur content	% a.r.	0.7 ‑ 1.5

Coal imports / (exports)		2022
Hard coal	Mt	4.4 / (0.9)
Brown coal	Mt	0.0 / (1.0)

Primary energy production		2022
Total primary energy production	Mtce	36.1
Hard coal production	Mt / Mtce	1.8 / 1.6
Brown coal production	Mt / Mtce	33.4 / 14.7

Primary energy consumption		2022
Total primary energy supply	Mtce	59.4
Hard coal consumption	Mt / Mtce	5.6 / 5.0
Brown coal consumption	Mt / Mtce	32.6 / 14.2

Power supply		2022
Total gross power generation	TWh	84.8
Net power imports (exports)	TWh	(13.5)
Total power supply	TWh	63.4
Power generation from hard coal	TWh	3.0
Power generation from brown coal	TWh	34.4
Hard coal power generation capacity	MW net	1 200
Brown coal power generation capacity	MW net	7 250

Employment		2022
Direct in hard coal mining	number	3 299
Direct in brown coal mining and power generation	number	8 247