Modernisation Fund to distribute up to 6 billion for green transformation of heat plants
Under the auspices of the State Environmental Fund, on 7 July 2025 the Modernisation Fund announced HEAT Call No. 1/2025 - Modernisation of Thermal Energy Supply Systems. The call aims to support the transition of heat plants to clean energy sources.
Applications will be accepted from 7 July to 28 November 2025. Heat plants can obtain subsidies for projects aimed at the reconstruction or replacement of a heat source in thermal energy supply systems (TESS) to switch from fossil fuels to alternative energy sources. Subsidies can also be obtained for modernisations and energy efficiency improvements of heat distribution systems within TESS. In both cases, the condition of changing the fuel base to a clean source must be met.
Owners of existing or new thermal energy sources with the necessary licences or non-licenced TESS owners with an infrastructure operated by a licensed entity can apply for the subsidy.
The funds for allocation amount to CZK 6 billion, of which CZK 3 billion has been preferentially earmarked for renewable energy projects, and CZK 1 billion for projects to modernise heat distribution within TESS. The aid intensity is 30 to 60 percent of the eligible expenses, depending on the type of project and its technology.
The application for subsidies must also include, among other things, the project’s documentation, an emission and energy assessment, a financial analysis, or a description of the investment. The project implementation period has been set at three to seven years, depending on the specific measures implemented. Projects throughout the entire territory of the Czech Republic are eligible for support.
If you are interested in more detailed information, please do not hesitate to contact us.