Ing. Martin Václavek, a graduate of robotics at the Technical University in Ostrava, gained managerial experience in a significant export company. Since mid-2021, he has managed a major company, ČEZ Energo — a leader in the field of cogeneration and beyond.
You took over the management of the company in the spring of 2021 at the time of the pandemic. Has this affected your strategy and priorities?
I took over the management of ČEZ Energo in June based on an offer by Kamil Čermák, CEO of ČEZ ESCO when all the virus countermeasures were already in place, and when the easing of restrictions gradually started taking place.
So the trategy was set in that direction. As far as priorities are concerned, the main priority has been the completion of the projects already underway — the announcement of a tender for the supply of CHP (combined heat and power) units, which is a scope worth over CZK 2 billion. It is the use of the spare capacity of cogeneration units in the production of heat and especially electricity.
Another project is the construction of a battery storage facility, which will be the largest in the Czech Republic — 10 MW. This storage facility will be used as a reservoir for storing electricity. We will use this storage to store energy when its price is low or when it is abundant and to supply it at times of energy peaks.
The last major strategic project is our intention to expand into Poland, which is starting to modernise and “green” its heat supply.
Heat and electricity prices are not stable, which aff ects the outlook for many companies. Can you off er your customers stability today, and how?
We provide our customers with a heat supply service under predefined conditions. In this way, the customer is assured of savings in heating costs compared to a standard heating system. In addition, the customer saves all expenses related to the construction and installation of the technology. ČEZ Energo will take care of the entire project at its own expense, from the feasibility study, through design and implementation, to the day-to-day care and servicing of the equipment. The projects that we carry out with customers are for a period of 15 years, and the customer has a lower heating price for the entire project period by about 10-15% compared to heating with standard technology. Furthermore, the customer does not have to take care of the equipment all the time and they also receive regular income for renting the premises where the technology is installed.
How do your solutions affect ecology and sustainability?
Our solution — combined heat and power generation — significantly reduces emissions. It involves burning natural gas with high efficiency — up to 90%, compared to a gas boiler. The fuel consumption is 20% lower, as is the incidence of CO2 emissions, and up to 60% reduction in emissions that occur when burning coal.
With an outlook for the future, we are working on hydrogen in our cogeneration units as part of the sustainability of combined heat and power production. Currently, they are already capable of burning up to 20% hydrogen. We would like to replace natural gas with hydrogen completely in the future.
For public administrations in particular, the level of investment in modernisation can be a limiting factor. Can you also help with financing?
Energy contracting is our main valueadded as well as our standard business model. We install the CHP unit at the customer’s own expense and then operate it for an agreed period of time. We then supply the customers with cheaper heat than they would have produced in their own gas boiler plant.
Cogeneration is the combined production of heat and power. When and for whom is it beneficial?
Cogeneration is the joint production of electricity and heat. It is a very efficient way of production. For example, our parent company ČEZ will rely on cogeneration to modernise the heating industry throughout the Czech Republic. Small cogeneration units are also more environmentally friendly because they are 90% efficient, so they do not need as much fuel, which is not the case with other conventional sources. This is a defi nite plus for the population, for nature and for society as a whole. Many cities and companies already know the benefi ts of CHP. We operate cogeneration at nearly 150 locations across the Czech Republic.
Cogeneration is suitable for local municipal heating plants, central heating supply systems, healthcare facilities, nursing homes, administrative and commercial centres, swimming pools, spas, sports centres or industrial enterprises, etc.
Which reference project of your company is the most interesting in your opinion?
Here, I would like to mention the project in Jablonec nad Nisou, where the town is setting an example for others in the modernisation of the heating industry: they ceased fuel oil combustion some time ago and added modern cogeneration to the revitalised CHS (central heating supply) system. Within this project, with an investment of CZK 80 million, we completely renovated four boiler plant, installed fi ve cogeneration units with a total electrical output of 2.6 MW, and connected them to the central heat supply.
Thank you for the interview.
