The Ministry of Industry and Trade is preparing a new system of auctions for operating support of biomethane, aimed at promoting the development of this renewable energy source in the Czech Republic. The first auction is expected to be announced at the end of April 2026, following approval by the European Commission.
The new support model will be based on an auction principle, where producers will compete on the so-called reference auction price at which they are able to produce and supply biomethane to the gas grid over the long term.
Support will be provided in the form of an auction bonus, calculated as the difference between the awarded price and the current market price of gas. Producers will be required to deliver biomethane to the grid through a designated mandatory purchaser. The key principle will be competition—support will be granted to projects with the lowest bid price, up to the total auction capacity.
In terms of support volume, the state is planning a relatively ambitious expansion. In 2026, 90 million m³ of biomethane is to be supported through auctions; in 2027, 110 million m³; and in 2028, up to 150 million m³. In total, this represents support for up to 350 million m³ of biomethane production over three years. Two auctions per year are planned, with application periods lasting approximately two months from their announcement.
Participation conditions will be relatively strict:
- Plants must ensure a minimum delivery corresponding to at least 75% of their capacity; otherwise, they will lose support for the given month.
- A minimum share of advanced biomethane will be required—over 40% from 2026, gradually increasing to over 60% after 2040.
- Biomethane will need to meet greenhouse gas emission limits, which will be progressively tightened—for example, below 17 g CO₂ eq./MJ from 2026 and down to below 12 g CO₂ eq./MJ after 2040.
- Failure to meet any of these limits will result in the loss of support for the respective month.
In addition, the entire supply chain must be certified according to international sustainability standards (e.g., ISCC, SURE, etc.).
For investors, project setup conditions will also be crucial. Facilities must be commissioned within three years (with the possibility of shortening this to two years in later auctions), secure connection to the gas grid, and provide a financial guarantee of CZK 4,000 per unit of capacity. The conditions will likely also include technical measures such as covering the final storage facility.
Overall, the auctions represent both an opportunity and a relatively demanding framework for new biomethane projects.