The energy landscape in Czechia and Europe is undergoing a significant transformation, with a shift towards renewable energy becoming a crucial part of the economic strategy. Renewable energy, which includes sources like solar, wind, and hydro power, is now at the forefront of Europe’s plans to become climate-neutral by 2050. The European Green Deal, a flagship plan by the EU, aims to transform the continent’s economy, making industries more competitive, buildings more efficient, and supply chains more sustainable.
In Czechia, the energy mix has historically been dominated by coal and nuclear power, but this is changing. In 2023, the country’s energy mix consisted of 36% coal, 33% nuclear, 17% renewables, and 13% natural gas. However, coal use has declined significantly, and solar and wind energy are on the rise. The country is now legally bound to meet the EU’s climate neutrality targets, which means that major sectors, including manufacturing, real estate, and energy, face new challenges and incentives.
The Green Deal is also reshaping the property sector, with developers facing stricter energy efficiency standards. This is triggering a wave of retrofitting, with old buildings being upgraded to meet new standards, creating opportunities in solar panels, insulation tech, and smart building systems. For investors, the transition to renewable energy is opening up new avenues for growth, with European capital markets shifting towards projects that meet ESG standards.
Jan Stránský, Wealth Manager at WOOD & Company, notes that the company’s Renewables Fund is one of the few domestic options giving Czech investors direct exposure to the sector. The fund has already funded the construction of a new solar plant in Romania and is investing in a battery storage facility in Sweden. With a projected annual return of about 15%, the fund has delivered a 9.25% return in its first seven months.
Overall, the shift towards renewable energy presents significant opportunities for investors and businesses in Czechia. With the EU offering billions in funding for green investments, and the country’s energy mix undergoing a significant transformation, now is the time to act and align investments with the future of energy. As the energy landscape continues to evolve, it is essential for investors and businesses to understand the shift and take advantage of the opportunities it presents.