Martin Václavek, director of ČEZ ENERGO, explains how integrating cogeneration and batteries speeds up the modernisation of heating plants and bolsters the energy grid’s stability. He shares practical experience from urban and industrial settings and discusses the energy-as-a-service model that does not require capital investment from customers.
There is frequent discussion about the need to update heating sources. What role do cogeneration units have in this process?
Cogeneration helps maintain the efficiency of heating plants and speeds up their move away from coal. It allows us to generate both heat and electricity with over 90% efficiency, adapt flexibly to demand, and improve grid stability. We manage 171 cogeneration units across 98 locations. A notable example is in Ivančice. This town of nearly ten thousand residents receives energy from a system that includes a cogeneration unit with a 2,000 kWe electrical and 2,254 kWt thermal output, gas boilers with a 5,800 kWt capacity, a 235 kWt heat pump with a 95 kW electrical input, 120 kWp of solar panels, 210 kW of battery storage with a 600 kWh capacity, and a 160 kWe electric boiler. Remote management of operations is tailored to the city’s current needs. We produce 44 TJ of heat annually for the hospital, school, and residential buildings. By diversifying sources, we reduce gas use, improve energy security, integrate renewable energy, and expand balancing service offerings such as aFRR and mFRR, helping to lower heating costs for end users. This was achieved through the “energy as a service” model, requiring no capital expenditure from the town.

Do you see a synergy between cogeneration and energy storage? Which technologies do you find promising for large-capacity battery storage?
Yes, Ostrava–Vítkovice is an excellent example. The 10 MW battery there works alongside gas units and stored over 2,000 MWh in its first year, with 87% efficiency and 98% reliability. It is certified for FCR and aFRR and can cover cogeneration output during peak times in our portfolio. Though it is the size of a family home, its impact is systemic. At ČEZ, we are targeting 300 MW of storage by 2030. Besides large lithium-ion systems, using “second-life” batteries from Škoda electric vehicles is promising, as they offer a good cost-performance ratio and give valuable components a second life.
How are customer needs evolving for municipalities, industries, or households? How are you addressing these changes?
Towns and cities seek price stability, cleaner technology, and no capital expenditure. In Příbor, we financed a new system, including cogeneration, with about CZK 20 million of our own funds, supplying heat and electricity as a service. Industries focus on flexibility and digitalisation, so we are expanding in cogeneration, solar, and battery solutions, along with offering grid balancing services. Around 40% of customer requests are handled online, with demands for quick data outputs on operations. Households and smaller properties choose solar with storage and smart energy management; we design, implement, and service all-in-one solutions, ensuring predictable energy costs and maximum user comfort.
Thank you for the interview.