INTERNATIONAL ENERGYAGENCY The IEA examines thefull spectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement andmuch more. Throughits work, the IEAadvocates policiesthat will enhance thereliability, affordabilityand sustainability ofenergy in its32Member countries,13Associationcountries andbeyond. IEAAssociationcountries: IEAMembercountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLatviaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and any mapincluded herein are withoutprejudice to the status of orsovereignty over anyterritory, to the delimitationof international frontiers andboundaries and to the nameof any territory, city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Table of contents Executive summary............................................................................................4Energy policy landscape .................................................................................10Energy and climate strategy ...........................................................................10End-use sectors ..............................................................................................19Electricity.........................................................................................................26Fuels ...............................................................................................................31Recommendations ..........................................................................................35Focus areas.......................................................................................................40Introduction: Intertwined challenges ...............................................................40Focus area 1: Replacing coal in the power sector..........................................42Recommendations ..........................................................................................55Focus area 2: Decarbonising heating in buildings ..........................................58Recommendations ..........................................................................................74Annexes.............................................................................................................78 Executive summary TheCzech Republic(Czechia)aims to phase out coal at an almostunprecedented pace.The IEA commends Czechia for such an ambitious phase-out.Coal is a major fuel source in Czechia, currently providing more than one-third ofCzechia’s electricity and half of its district heating. Coal-fired plants are slated forretirement by 2033, but economic drivers may close them earlier. This would be anextraordinary transformation of Czechia’s energy system. The transition from its fossilfuel legacy can be a springboard to building a vibrant clean energy economy. But it isnot without challenges, such as addressing local impacts in coal-dependent regions,accelerating the deployment of alternative sources of energy, managing workforcetransitions and gaining public acceptance. There is no time to waste: decisions takenin the coming years will be pivotal to determining the success of the phase-out. Thisreport provides timely advice on how Czechia can achieve its goals, including in twofocusareas:replacing coal in power generation and decarbonising heating inbuildings. Updating Czechia’s suite of energy strategies is a pressing priority, as isensuring their collective coherence.Doing so will provide a clearer direction tostakeholders and boost investor confidence. The 2024 National Energy and ClimatePlan (NECP) sets ambitious goals, including greenhouse gas (GHG) emissionsreductions, and increasing the share of renewables and nuclear in power generation.To achieve these goals, many of the associated plans and guiding documents,including the State Energy Policy (2015) and the Climate Protection Policy (2017),need to be updated or more clearly defined, with a particular focus on the long-termpathway for renewables and the role of natural gas in the energy transition. Czechiahas set laudable goals and updating its strategic framework, filling implementationgaps, strengthening capacity and fostering societal support will help to achieve them. Significant steps are being taken to improve energy security and reducereliance on Russian imports.To address short-term energy security concernsrelated to the coal phase-out, legislation now allows temporary operation of coalplants in case of shortages, and a capacity mechanism is being developed to attractinve