The Czech Republic has been urged to encourage more energy investments.
The International Energy Agency (IEA) recently praised the country in its latest energy policy review, stating it has the highest level of power interconnection capacity within Central Europe and is equally well connected to surrounding gas markets.
However, the report also says the government needs more transparent plans and clearer expectations to attract investors.
Fatih Birol, the IEA’s Executive Director, said: “The government must create the conditions to attract necessary investments across the energy sector.”
He adds measures that reduced support for renewables in 2014 resulted in uncertainty and a fall in investor confidence.
The review states the Czech Republic needs to quickly decide on how new nuclear plants will be financed, built and operated in order to strengthen energy independence and security of supply.
It adds coal remains the largest source of greenhouse gases in the country and suggests factories should be equipped with emissions capture and reduction technology to mitigate this.
The coal commonly used in Czech household heating is harder to regulate and reduce, according to the report.
Dr Birol adds: “The government should ensure that less well-off householders are provided with the means to switch to cleaner solutions, such as natural gas or district heating where available.”
The EU allowed the Czech Republic to grant state aid for two green energy schemes earlier this year.