On 16 July 2026, the European Commission approved Czechia’s market-wide capacity mechanism under EU State aid rules(“Mechanism“). It is the first capacity mechanism approved under the Clean Industrial Deal State Aid Framework (CISAF), adopted by the Commission in June 2025. The scheme is intended to safeguard long-term electricity security by ensuring sufficient generation, storage and flexibility resources are available. The full European Commission announcement is available at this link.

The Mechanism will operate for 10 years from July 2026 and will allocate support through competitive auctions based on transparent and non-discriminatory criteria. Eligible participants include existing and new generation assets, energy storage facilities, cross-border capacity providers and demand-side response participants. All participating units will be required to comply with applicable EU CO₂ emission limits. The scheme is therefore designed to maintain security of supply while supporting the integration of cleaner and more flexible energy resources into the electricity system.

The total budget is estimated at EUR 3.1-6.2 billion, depending on auction outcomes and future system needs. The first delivery period for awarded capacity agreements is scheduled to run from November 2030 to October 2031.