The recent energy crisis has prompted a strategic shift in how municipalities manage heating, electricity, and the public infrastructure. Martin Václavek, Director of ČEZ ENERGO, observes that city leaders are increasingly treating energy as a foundational, long-term asset. He highlights modern combined heat and power (CHP) systems as a vital solution for cities prioritising supply reliability, cost efficiency, and enhanced energy resilience.
In recent years, there has been much talk of the energy crisis, prices, and quick savings. Has the debate with mayors shifted from immediate solutions to price issues towards a long-term strategy for urban energy?
Indeed. Throughout the energy crisis, the primary concern was mitigating the financial impact of rising energy prices on municipal, public, and residential budgets. The strategy at the time prioritised immediate cost-cutting measures, consumption optimisation, and short-term supply stability. The debate is shifting from the question “how much will we pay next year” to “how do we want our energy system to function in ten years’ time”. Towns and cities realise that energy is not a one-off project but long-term infrastructure that shapes their development, competitiveness, and residents’ quality of life. As a result, municipalities are increasingly developing their own energy strategies, focusing on modernising heating systems, integrating renewables, and fostering energy communities to enhance self-sufficiency. It is encouraging to see towns and cities adopt a more integrat- The recent energy crisis has prompted a strategic shi and the public infrastructure. Martin Václavek, Dire increasingly treating energy as a foundational, long-t power (CHP) systems as a vital solution for cities priori energy resilience.
This year, ČEZ Energo commissioned a combined heat and power plant in Bystřice pod Hostýnem, which supplies heat to blocks of flats and a primary school. What does this type of project reveal about the needs of small and medium-sized towns?
The case of Bystřice pod Hostýnem illustrates that municipalities prioritise more than just cost reduction in heating. A consistent, predictable, and technically sound energy supply is equally significant. For small to mid-sized towns, this is a critical concern, as they must ensure the uninterrupted operation of schools, residential complexes, and public facilities, regardless of external market fluctuations. Energy is no longer just a technical service, but one of the fundamental components of a municipality’s functioning. Cogeneration gives local authorities the opportunity to utilise an efficient, flexible, and economically sustainable source. In Bystřice, the town has secured a solution that combines cost savings with a high degree of operational reliability. ift in how municipalities manage heating, electricity, ector of ČEZ ENERGO, observes that city leaders are term asset. He highlights modern combined heat and itising supply reliability, cost efficiency, and enhanced
Schools, sports facilities, swimming pools, and care homes for the elderly have high heating requirements. Where do you see the greatest potential for cogeneration in municipal infrastructure?
We see the greatest potential where there is year-round or long-term stable heat demand. Typically, these include district heating systems, hospitals, care homes, sports complexes, swimming pools or larger clusters of public buildings and residential blocks. Many towns and cities find the model attractive because it means they do not have to finance the modernisation from their own budgets. The investment in the cogeneration unit and related technology is carried out and paid for by ČEZ Energo, which also assumes responsibility for operation and technical management. The town thus gains a modern, efficient and reliable energy source without having to make a large investment of its own. A municipality can assess the suitability of cogeneration based on sev eral criteria: a stable heat demand, a desire to modernise its existing energy source, and a need to reduce operating costs and enhance energy security. Where these conditions are met, cogeneration is usually an effective solution.
Towns and cities often manage their energy needs on a building-by-building basis. How does this approach change when they begin to view energy as an interconnected system?
This is one of the most significant trends in municipal energy management today. Municipalities that begin to view energy as a single, integrated whole can see connections that are not apparent when looking at individual buildings. They discover, for example, that heat from a single source can supply multiple buildings, that peaks in electricity demand can be met by local generation, and that operating costs can be optimised across the entire system. Such an approach enables long-term planning, rather than merely addressing individual problems. At the same time, it opens up opportunities to combine cogeneration, photovoltaics, energy storage, and modern consumption management systems. The result is usually lower operating costs, greater energy self-sufficiency, and greater resilience to fluctuations in energy prices.
ČEZ Energo has 173 cogeneration units with an installed electrical capacity of 137 MWe. What role will smaller local cogeneration play alongside large district heating sources?
I do not think this is a battle between large and small sources. The energy sector of the future will need both. Large district heating sources will remain an important part of the energy infrastructure, particularly in large cities. At the same time, the importance of smaller, flexible and decentralised sources that can respond to the needs of specific localities will grow. Thanks to the operation of 173 cogeneration units across the Czech Republic, we can see how the needs of cities, towns, and villages are changing. Towns and cities are looking for solutions that will ensure stability of supply, economic efficiency, and greater control over their own energy systems. Local cogeneration can effectively complement large-scale sources. In addition to supplying heat and electricity, its ability to provide flexibility to the electricity grid will grow. With the increasing share of renewable sources, there will be a need for more facilities capable of responding quickly to changes in output from photovoltaic and wind power stations. When making decisions, towns and cities should not underestimate the importance of the stability of heat supply and the overall operating costs over the project’s lifetime. Energy investments are made for decades, so it is not enough to assess only the purchase price of the technology. Operating economics, flexibility, and the ability to adapt to the market are crucial.
