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Energy industry in the Czech Republic
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General State of the Economy

The Czech Republic is a state in Central Europe. Its capital city is Prague [1]. The country borders Austria (to the south), Germany (to the west), Slovakia (to the east) and Poland (to the north). The Czech Republic, which in terms of size is placed 118th in the world, is home to more than 10.5 million people as of 2023. In terms of population density the country places 96th in the world, from 250 countries considered [2,3].
 

Czechia/ the Czech Republic
Capital: PragueDensity: 133/km2Currency: Czech koruna (CZK)
Official languages:  CzechLife expectancy at birth: 77.37 yearsGDP (PPP): $585.187 billion (2023 est.)
National Day: 28 OctoberArea: 78,871 km2GDP - per capita (PPP): $53,816 (2023 est.)
Population: 10,495,295 (2023 est.)Coastline: 0 kmInternet country code: .cz

Source: [1,2,3,4,5]

The Czech Republic is a parliamentary republic, and the official language is Czech. The administrative map of the country is divided into 13 regions [3].

Bridges in Prague. Envato Elements. UQ7LMKN6VS

The country's economy is based on the export of goods; the main industry is automotive, which constitutes around 80% of GDP. The Czech Republic demonstrates one of the lowest unemployment rates in the EU and has a developed market economy, which is reflected in Figure 1.

 Sources:
1. GDP (purchasing power parity), 2020 est. / The World Factbook/Library/Central Intelligence Agency *228
2. GDP - per capita (PPP), 2020 / The World Factbook/Library/Central Intelligence Agency *229
3. Inflation rate (consumer prices), 2019 est. / The World Factbook/Library/Central Intelligence Agency *228
4. Charges for the use of intellectual property, receipts (BoP, current US$), 2020 / International Monetary Fund, Balance of Payments Statistics Yearbook, and data files. / License: CC BY-4.0 *88
5. The Global Competitiveness Index 2019 / Rankings / Reports / World Economic Forum *141
6. High-technology exports (current US$) 2019-2020 / United Nations, Comtrade database through the WITS platform / License: CCBY-4.0 / Data *134
7. 2021 Index of Economic Freedom / International Economies / The Heritage Foundation *178
8. Reserves of foreign exchange and gold, 2017 est. / The World Factbook / Library / Central Intelligence Agency *195
9. Annual average GDP growth in %, for the last 10 years (2011-2020) / World Bank national accounts data, and OECD National Accounts data files / License: CC BY-4.0  *206
10. Public debt (% of GDP), 2017 est. / The World Factbook / Library / Central Intelligence Agency (from smallest to largest) *210
  * Total number of countries participating in ranking


Figure 1. Economic Indices of the Czech Republic


For the majority of indices, the country places higher than the world average (ie. in the top half of the graph), and for 6 indices in the top quarter of the graph, among the 25% highest ranked countries in the world included in the rating.
Since the 1990s, despite having undergone a slight decline in 2020, the Czech Republic has experienced sustained GDP growth in purchasing power parity, both in general and per capita [4,5]. GDP at purchasing power parity increased from $357.5 billion in 2015 to $585.19 billion in 2023 [3].
The country’s GDP at purchasing power parity per capita also been demonstrating positive dynamics: from $33,899 in 2015 to $53,816 in 2023  [3]. Inflation rates have risen sharply in recent years to nearly 10.7%. The Global Competitiveness Report reflects the effectiveness of the use of the country’s resources for sustainable development. In addition to a number of economic indicators, this index also takes into account such variables as education, health, level of innovation, etc.
High-technology exports in 2022 was 21% of manufactured exports. According to the Index of Economic Freedom 2024, which is based on freedom of business, freedom from government intervention, property protection, and freedom from corruption, the country was considered “mostly free”, and placed 24th, out of 176 countries. In terms of gold reserves and foreign exchange reserves the Czech Republic was 15th in the world.
The Czech Republic public debt as a percentage of GDP was 46.8% in 2022.

Energy Resources

The Czech Republic has no significant reserves of fossil resources (Table. 1). According to proven reserves of oil and natural gas, the country is ranked 85th and 93th in the world, respectively [3]. According to data for 2024, in terms of tons of oil equivalent, proved coal reserves amounted to 99.8%, natural gas – 0.1%, oil – 0.1% (Figure 5). The most valuable resource of the country is coal, which were estimated at 35.2 million barrels in 2021 [14].

  Table 1. Fossil energy resources of the Czech Republic

Resource /ExplanationsCrude oil*Natural gas*Coal*Shale GasTight OilCoal mine methane
Value15(0.001%)0.14(0.002%)3 962(0.34%)--1.8 - 7.8
Unitmillion barrelsTcfmillion short tons--Bcm
Year202120202021--2020
Source[14][14][14]--[6,7]

*share of the country’s reserves in world total is provided in brackets

According to [14], in 2021, oil reserves in the Czech Republic were estimated at 15 million barrels, with natural gas reserves at 0.14 Tcf. According to Advanced Energy Technologies calculations, the potential for coal mine methane utilization - according to a methodology based on methane emissions [7] and coal reserves [6] - amounted to around 1.8 - 7.8 bcm. The Czech Republic, due to its geographical location, has a variety of reserves of renewable energy sources.
A selection of basic indicators of this type of resource is presented in Table 2.
Technically exploitable hydropower capability in the Czech Republic amounted to 3 978 GWh/year. For comparison, this is around 7 times less than the economically affordable hydro potential of Austria [8]. The level of global horizontal radiation for the majority of the country is between 3.0-3.1 kWh/m2/day, and in Southern and Northern Moravia this can exceed the level of 3.1 kWh/m2/day [9], which is comparable to Denmark, Southern Sweden, and Belgium.

 Table 2.Renewable energy resources of the Czech Republic

Resource/
Explanations
Solar Potential
(GHI)*
Wind Potential
(50 м)*
Hydro energy
Potential**
Bio Potential
(agricultural area)
Bio Potential
(forest area)
Geothermal
Potenial
Municipal Solid
Waste
Value3.0-3.15.5-6.53 97845.734.7no data570
UnitkWh/m2/daym/sGWh/year% of land area% of land area-kg per capita
Year20202020201320212021-2022
Source[9][10][8][11][12][-][13]

*for most of the territory of the country
**technically exploitable potential

The distribution of wind resources is as follows: for the majority of the country the wind speed does not exceed 5.5-6.5 m/s, although in the east of the country and in Northern Moravia, this figure may exceed 7.0 m/s at a height of 50 meters [10]. These figures indicate the potential for the development of wind energy in the power industry of the Czech Republic, which would allow it to compete with other traditional local renewable technologies, principally bio energy.
According to data for 2021, 45.7% of the territory of the country is occupied by agricultural land, the area of which has been decreasing over the last fifty years [11]; 34.7% of the territory of the country was forested, which, like the previous indicator, is showing a slight increase [12]. According to Eurostat, in terms of municipal waste generation, the Czech Republic produced 570 kg per capita in 2022, placing it ahead of, for example, Poland at 346 kg per capita, but behind Slovenia at 487 kg per capita [15]. This resource is a valuable raw material for recycling or energy production, the technologies of which have reached a high level of development in the Czech Republic.


CZECH REPUBLIC, PRAHA-KARLOV / KLEMENTINUM
Latitude: 50.07 Longitude: 14.43

Average daily sky coverage over 10 years of observations, %

CLR - clear, SCT - scattered from 1/8 TO 4/8, BKN - broken from 5/8 TO 7/8, OVC - overcast, OBS - obscured, POB - partial obscuration

Source: based on NOAA U.S. Department of Commerce
Detailed information:
 Interactive map of solar resources

CZECH REPUBLIC, PRAHA-KARLOV / KLEMENTINUM
Latitude: 50.07 Longitude: 14.43
Average speed: 3.00 m/s  Operational share: 53%

Average daily wind speed for 10 years of observations, m/s, 10 m above the ground

Source: based on NOAA U.S. Department of Commerce
Detailed information: 
Interactive map of wind resources

 

Energy Balance

According to the BP Statistical Review of World Energy 2022, total primary energy consumption in the Czech Republic in 2021 was 1.68 exajoules, around 32.1% of which was coal, 24.4% – oil, 19.6% – natural gas, 16.7% – nuclear energy, 5.9% – other renewables, and 1.2% – hydro energy [6].
Oil production between 2003 and 2023
slowly decreased (Figure 2), and in 2023 amounted to 9 thousand barrels/day [14]. At the same time consumption grew, having undergone a slight decline between 2008 and 2013, before rising again, and by 2023 amounted to 211 thousand barrels/day [14]. According to the BP survey, the level of oil consumption in the Czech Republic was 200 thousand barrels/day [6].
 In 2020, oil imports to the Czech Republic were estimated at 124 thousand barrels/day [14].
The production of natural gas in the country between 2001 and 2022 did not exceed the level of 9.3 Bcf, and in 2022 it was 7.9 Bcf [14]. According to the BP Statistical Review of World Energy, [6] gas consumption in the country in 2021 was 9.1 billion m3.

Source: U.S. Energy Information Administration (Sep 2024) / www.eia.gov

Figure 2. The Production and consumption of fossil fuels in the Czech Republic (coal – left, gas – in the center, oil – right)

According [14], natural gas consumption in the country amounted to 268 Bcf in 2022. In 2022 the Czech Republic imported about 304 Bcf of natural gas. Coal production and consumption in the country has been gradually decreasing since 2003, and in 2022 amounted to 38,66 and 42.14 million short tons respectively (Fig.2). According [6], coal consumption amounted to 0.54 exajoules, and production totalled 0.43 exajoules [6]. The Czech Republic uses fossil fuels and nuclear power for the production of electricity; however, it is worth noting a general decrease of fossil fuel use in the level of electricity consumption in the country (Fig. 3). In 2022 the country produced 79.31 TWh of electricity, where fossil fuels constituted 48.2%, nuclear power — 39.1%, hydro energy — 2.6% and other renewable energy — 10.1% (Fig.6).

                                          
Sources: U.S. Energy Information Administration (Sep 2024) / www.eia.gov
 
                                      Figure 3. Electricity production in the Czech Republic 

Due to the absence of significant oil and gas reserves, the Czech Republic is at the bottom of the list of countries in terms of production/consumption of oil and gas, ranging from high to low values. However in terms of coal reserves and the production/consumption ratio, the positioning of the country looks quite convincing.
In terms of the share of electricity production from renewable energy sources (excluding hydropower), the Czech Republic was 50th out of 170 countries selected for consideration.

 Sources:
1. Crude oil proved reserves, 2021 / International Energy Statistic/Geography / U.S. Energy Information Administration (Nov 2021)*98
2. Natural gas proved reserves 2021 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *99
3. Total recoverable coal reserves 2019 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *81
4. Combination production-consumption for Crude oil 2018 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *219
5. Combination production-consumption for Natural gas 2019 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *123
6. Combination production-consumption for Coal 2019 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *128
7. Electricity – from other renewable sources (% of total installed capacity), 2017 est. / The World Factbook / Library / Central Intelligence Agency *170
8. GDP per unit of energy use (PPP per unit of oil equivalent), 2020 *66
Primary energy consumption - BP Statistical Review of World Energy 2021/BP;
GDP (purchasing power parity) - The World Factbook/Library/Central Intelligence Agency
9. Energy use (primary energy use of oil equivalent per capita) 2020  *127
Primary energy consumption – BP Statistical Review of World Energy 2021; Population - United Nations, Department of Economic and Social Affairs,
Population Division (2019). World Population Prospects 2019, custom data acquired via website. Retrieved 15 November 2021
*66
10. The Global Energy Architecture Performance Index Report (EAPI) 2017 / Rankings / Reports / World Economic Forum
11. Electric power consumption (kWh per capita), 2016 *217
Electricity Consumption - The World Factbook / Library / Central Intelligence Agency; Population - United Nations, Department of Economic and Social Affairs,
Population Division (2019). World Population Prospects 2019, custom data acquired via website. Retrieved 15 November 2021

12. Combination of electricity production-consumption (kWh)/The World Factbook/Library/Central Intelligence Agency *216

* Total number of countries participating in ranking

Figure 4. Energy indices of the Czech Republic


In 2020 the Czech Republic placed 31st out of 66 countries ranked by the ratio of GDP per unit of energy use, while in terms of energy consumption per capita the country is 24th in the world, ahead of Poland and France.
In terms of electricity consumption per capita, the country is 50th in the world; however, for the indicator of combination of electricity production-consumption, the Czech Republic is 27th in the ranked list of 216 countries, ahead of Norway and Poland.

Energy Infrastructure

A territorial map showing the distribution of the largest infrastructure projects of the fossil-fuel sector and electricity in the Czech Republic is shown in Figure 5.
As mentioned earlier, coal plays the predominant role in the total potential of fossil energy resources – 99.8%, natural gas amounts to 0.1%, and oil – 0.1% (Figure 5). Nastup Tusimice & Bilina, Severočeskédoly is considered to be the richest coal mine and has a production level of 21 million tons per year [16]. Dambořice is considered to be one of the leading oil fields, with production levels at 4700 bpd [17]. Oil is stored in a large number of storage facilities, the largest of which is Nelahozeves, Mero ČR Oil Storage Terminal, which is able to accommodate about 1.550.000 m3 [18]. There are three oil refineries, the largest Litvinov, has an installed capacity of 120.000 bpd [19]; transportation of oil and petroleum products is carried out via pipelines with a total length of 536 km and 94 km (Fig. 5).

Map of oil and gas infrastructure in the Czech Republic
Figure 5. Basic infrastructure facilities of the fossil fuel sector in the Czech Republic

The gas infrastructure is represented by a network of pipelines with a total length of 7160 km, connecting six main compressor stations, as well as nine gas storage facilities (Fig.5).
The map of the territorial distribution of the Czech Republic’s largest infrastructure facilities for electricity generation is presented in Figure 6.
Map of power plant in the Czech Republic

Figure 6. Electricity production and renewable energy in the Czech Republic

According to the U.S. Energy Information Administration, the share of fossil fuels in energy production in the Czech Republic in 2022 was 48.2% (Fig.6). The country has a significant number of stations for the production of electricity from hydrocarbons, including two nuclear power plants, one combined power, and thirteen coal power plants with a capacity of over 100 MW (Fig.6).
The largest power plants in the country are: the coal power plant complex Prunerov I-II, with an installed capacity of 1190 MW [20]; Temelin nuclear power plant, with an installed capacity of 2160 MW [21]; and Hodonin Combined Power Plant, with an installed capacity of 105 MW [22]. Coal gasification is carried out at Vresova IGCC, with an installed capacity of 400 MW [23].
The share of hydropower in electricity production was 2.6%; this sector is represented by both pumped-storage power plants and large and small hydropower plants (Fig.6). The largest pumped storage power plant is Dlouhe Strane, with an installed capacity of 650 MW, and the largest hydropower station is Orlik, with a capacity of 364 MW [24,25]. In 2016 the Czech Republic registered more than 1000 small-scale hydropower stations, with a total installed capacity of 333.8 MW (Fig.6).
The map of the territorial distribution of the largest infrastructure facilities of renewable energy in the Czech Republic is presented in Figure 7.
Map of Renewable energy infrastructure in the Czech Republic

Figure 7. Renewable energy in the Czech Republic

As noted above, renewable energy (excluding hydroenergy) in 2023 was 8.99 TWh (Fig.7).
In zones of high wind activity there are 11 large wind parks, with a capacity of more than 7 MWth each. The current installed capacity of wind power in The Czech Republic is 278 MW [26]; the largest is Margonin Wind Farm, with a capacity of 42 MW [27]. As noted above, the level of global horizontal solar irradiation in some areas of the country can reach 3.1 kWh/m2 [9], and as a result there are a number of solar power plants. The largest photovoltaic solar station is Ralsko Ra-1, with a capacity of 38.3 MW [28]. The share of bioenergy in electricity production was 46% (Fig.7). By 2030, the Czech government expects to increase the installed output of hydroelectric power plants to 1 127 MWe, wind power plants to 970 Mwe and photovoltaic power plants to 3 975 MWe [37]. There are biogas enterprises in the country, as well as facilities for processing municipal waste, and the production of biodiesel, bioethanol, pellets, etc. (Fig.7). The Czech Republic’s largest enterprises for the production of biodiesel and bioethanol are: Usti nad Labem, with a capacity of 100 000 t/year; and Dobrovice, Tereos TTD Bioethanol Plant, with a capacity of 80 000 t/year [29,30]. One of the main biogas production enterprises in the country is Prague WWT, with an installed capacity of 5.4 MW [31].

Picturesque rural landscape with old windmill. Envato Elements. GMBFSPX39T

Among other bioenergy enterprises, it is worth mentioning Hodonin Biomass power plant, which has an installed capacity of 30 MWe [32]; and Kozomin Biomass Gasification Plant, with an installed capacity of 7 MWth [33]. The largest Czech Republic enterprise using modern technology is Paskov, Mayr Melnh of Holz Wood Pellet Plant, which can produce around 85 000 tons of pellets annually [34].
The leader in the generation of electricity from municipal waste is located in Brno, and can process about 360 000 tons annually [35]. The Czech Republic also develops hydrogen energy, which, amongst other uses, can provide an energy source for vehicles. There is a hydrogen filling station in Central Bohemia with a storage capacity of 125 kg [36].

Education and Innovation

The set of indices reflecting the position of the Czech Republic in the field of education and innovation can be seen in Figure 8. According to the indices presented, the Czech Republic demonstrates a high level of innovation activity and education – all indices are above the world average, with some metrics far exceeding this.
The Czech Republic placed 24th out of 132 countries considered in the ranking of countries of the Global Innovation Index 2021 (see diagram), having lost three ranking positions.

 Sources:
1. The Global Innovation Index 2021, Rankings / Knowledge / World Intellectual Property Organization / Cornell University, INSEAD, and WIPO (2021):
Energizing the World with Innovation. Ithaca, Fontainebleau, and Geneva *132
2. Patent Grants 2011-2020, resident & abroad / Statistical country profiles / World Intellectual Property Organization *185
3.Patents in Force 2020 / Statistical country profiles / World Intellectual Property Organization *109
4. QS World University Rankings 2022 *97
5. SCImago Country Rankings (1996-2020) / Country rankings / SCImago, (n.d.). SIR-SCImago Journal & Country Rank [Portal]. Retrieved 17 Nov 2021 *240
6. Internet users in 2018 / The World Factbook / Central Intelligence Agency *229
7. Internet users in 2018 (% Population) / The World Factbook / Central Intelligence Agency *229
8. Government expenditure on education, total (% of GDP), 2019 / United Nations Educational, Scientific, and Cultural Organization (UNESCO) Institute for Statistics.
License: CCBY-4.0 / Data as of September 2021*177
9. Research and development expenditure (% of GDP), 2018 / UNESCO Institute for Statistics. License: CCBY-4.0 / Data *119
10. Scientific and technical journal articles, 2018 / National Science Foundation, Science and Engineering Indicators. License: CCBY-4.0 / Data *197
  * Total number of countries participating in ranking


Figure 8. The indices of education and innovation in the Czech Republic
 

According to the number of patents granted to Czech nationals, both domestically and abroad, the country ranks 36th in the world, behind a number of European countries, but nonetheless higher than the world average. Similarly, by the number of patents in force, the country is above the world average –30th place, indicating the country's favorable conditions for innovation. In terms of government expenditure on education as a percentage of the country's GDP, the country demonstrates a result below the world average – 81st out of 177 countries selected for consideration; nevertheless 15 Czech universities were entered into the QS University Rating.
The Czech Republic is very well positioned when considering the number of publications of specialists in scientific and technological journals and patent activities. The country is 27th out of 240 participating countries in the Scimago ranking, and in Scientific and Technical Journal Activities it is ranked 25th out of 197 countries. The country is also among the leaders in the region in terms of the number of Internet users and is 21st in terms of government expenditure in research and development. Czech Universities, such as Brno University of Technology, the Czech Technical University in Prague, and the Technical University of Ostrava train specialists in various fields of energy, Mechanical Engineering, Electrical Engineering and Nuclear Science, etc. In the field of synthetic fuel production the main research institutes are the Institute of Chemical Process Fundamentals and Brno University of Technology.
In the field of unconventional oil the leading patent holder is Stone Wall S.R.O., and leaders by the number of publications are Institute of Rock Structure and Mechanics, the Institute of Chemical Technology, and Masaryk University. Another important area for the Czech Republic, rich in coal, is coalbed methane; here leaders by the number of publications are the Institute of Rock Structure and Mechanics, and the Institute of Geonics of the CAS. In the field of hydrocarbon production from reservoirs with low permeability, research is being conducted at the Institute of Rock Structure and Mechanics and Charles University. The Czech Academy of Sciences conducts research in the field of gas hydrates. The leading patent holders in the field of bioenergy are Ceska Hlava s.r.o., Biotech Progress AS. Research is conducted by Charles University and the Institute of Microbiology of the ASCR.
A large number of companies patent technical solutions in the field of energy production from renewable sources. In the field of solar energy, Hesco s.r.o., and Nee Innovations s.r.o. are prominent. Leading research organizations in this field are Brno University of Technology and the Czech Technical University. Among the universities conducting research in the field of wind energy, we should highlight the VSB – Technical University of Ostrava, and the Czech Technical University.

Ecology and Environment Protection

The diagram of environmental indices presented in Figure 9 to some extent reflects the ecological situation in the country.
The Czech Republic is located at the bottom of the environmental chart, primarily due to high CO2 emissions, in general and per capita.

 
 Sources:
1. CO2 total emission by countries 2020 / European Commission / Joint Research Centre (JRC) / Emission Database for Global Atmospheric Research (EDGAR)*208
2. CO2 per capita emission 2020/European Commission/Joint Research Centre (JRC) / Emission Database for Global Atmospheric Research (EDGAR) *208
3. Forest area 2020 (% of land area) / The Global Forest Resources Assessment 2020 / Food and Agriculture Organization of the United Nations *234
4. Forest area change 2010-2020 (1000 ha/year) / The Global Forest Resources Assessment 2020 / Food and Agriculture Organization of the United Nations *234
5. The Environmental Performance Index (EPI) 2020 / Rankings / Yale Center for Environmental Law & Policy / Yale University *180
6. Annual freshwater withdrawals (m3 per capita), 2017 *179
Annual freshwater withdrawals, total (billion m3), 2017 – Food and Agriculture Organization, AQUASTAT data. /License: CC BY-4.0; 
Population – United Nations, Department of Economic and Social Affairs, Population Division (2019).
World Population Prospects 2019, custom data acquired via website. Retrieved 15 November 2021
7. The National Footprint Accounts 2017 (Biocapacity Credit / Deficit) / Global Footprint Network *188
8. Methane emissions (kt of CO2 equivalent), 2018 / Data for up to 1990 are sourced from Carbon Dioxide Information Analysis Center, Environmental Sciences Division,
Oak Ridge National Laboratory, Tennessee, United States. Data from 1990 are CAIT data: Climate Watch. 2020. GHG Emissions. Washington, DC: World Resources Institute.
Available at: License : Attribution-NonCommercial 4.0 International (CC BY-NC 4.0)  *191
9. The Climate Change Performance Index (CCPI) 2022 / Overall Results / Jan Burck, Thea Uhlich, Christoph Bals, Niklas Höhne, Leonardo Nascimento /
Germanwatch, NewClimate Institute & Climate Action Network *60

  * Total number of countries participating in ranking

Figure 9. Environmental Indices of the Czech Republic
 

The high level of methane emissions in the country should also be noted.
The Czech Republic is 48th in the Climate Change Performance Index (CCPI) 2022, which includes the 61 countries responsible for more than 90% of global energy-related CO2 emissions. In terms of forest area as a percentage of the country, in 2020 the Czech Republic was 102nd out of 234 countries. However, the trend associated with its change from 2010-2020 looks positive and according to this indicator the country is 50th in the world. The country is very well positioned in the Environmental Performance Index (EPI) 2020, which focuses primarily on the environmental activities of national governments, aimed at reducing the negative impact of the environment, and rational use of natural resources. In this ranking, the country is 20th out of 180 participating countries, behind a number of European countries. Finally, it is worth mentioning that according to the Ecological Footprint Atlas rating, the Czech Republic is among a number of ecological debtors.

References

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[36] Neratovice Veolia Transport Hydrogen Station / Wikimapia / wikimapia.org
[37] Renewable resources in the Czech Republic (PDF) / April 2022 / TPA / https://www.tpa-group.com/en/

The sources of charts and curves are specified under the images.


For more information about the energy industry in Czech Republic see here