Cost to end coal in the billions

Martina Taxova, Trade Commissioner (Czech Republic)
07-June-21

A joint study conducted by the Czech Technical University in Prague and the Association for District Heating of the Czech Republic, indicated that by the end of 2030, Czech heating plants will have to invest approximately 100 billion CZK (5.8 billion CAD) to switch from coal to gas. 

So far, tens of billions have been set aside in the funds being prepared for the transformation of the heating industry.  However, the final amount of public support has not yet been clearly determined. At today’s emission allowance prices, about 52 billion would come from the Modernization Fund and 1.7 billion from the National Recovery Fund. Heating plants with an output of more than one megawatt could also use operational support.

Companies are pushed to the use of more expensive low-carbon fuels by the rising price of emission allowances. Heating plants must purchase them as soon as each tonne of carbon dioxide is emitted from their operation. Since March 2021, the price of allowances has been above 40 EUR per tonne while in April 2020 they cost half.

Source

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