The Commission approved a Czech EUR 3.7 billion scheme for biomethane

The European Commission approved on 14 April 2026 a Czech State aid scheme for biomethane worth EUR 3.7 billion. The scheme supports the construction of new installations and the conversion of existing biogas plants into biomethane plants until the end of 2030. According to the announcements, the assessment was carried out on the basis of the CISAF framework, adopted in June 2025. This is the second major Czech scheme: the first, from 2023, was worth EUR 2.4 billion.

Structure of the scheme

The aid takes the form of a two-way contract for difference (CfD): the producer receives a premium for each MWh of biomethane produced at a fixed strike price. If gas prices fall below this level, the state pays the difference; if they exceed it, the producer returns the surplus. The support period is 15 years. The target is production of about 350 million Nm³ of biomethane by the end of 2030, intended for transport, heating and industry. The scheme is aimed mainly at small and medium-sized farms. Beneficiaries are selected by competitive tenders, and the requirements are a gas production licence and compliance with the RES directive. The announcements do not give the number of installations or the budget schedule.

Why it matters

The Czech scheme is an example of a solution the Commission regards as acceptable: a two-way CfD protects against overcompensation, and a tender forces bidders to compete on cost. Compared with the 2023 scheme (a premium for 20 years, assessed under the 2022 guidelines), the support period is shorter, but the design is more precise. For a country with a small number of biomethane plants it is a jump in scale.

Significance for the industry in Poland

Poland was at that time preparing auctions for biomethane above 1 MW with contracts for difference of up to 20 years; the act had not yet been passed after the veto of 2025. The Czech decisions are a point of reference on two matters. First, the Commission accepts CfDs as a form of operating support, which reduces the risk for the Polish notification. Second, the size of the Czech scheme (EUR 3.7 billion for 350 million Nm³ by 2030) allows the scale to be compared: the Polish assumptions of February 2025 spoke of support of the order of PLN 1.3 billion per year from 2034 for up to 300 million m³ per year.

The Czechs and Poles compete for the same supplies of equipment and engineering services, so intensive development on the other side of the border may affect delivery times in Poland.

What to watch

The sources differ on the assessment framework (one does not mention CISAF). It is worth checking the Commission's decision in the State aid register. Market observers will pay attention to the results of the first Czech auctions, because they will show which reference prices are competitive.