Weekly review no. 6
03.11.2023
VW Moves Battery Factory in the Czech Republic
Volkswagen is not building its planned gigafactory in Central Europe for the time being. The company cited the slower development of electromobility as the reason. Volkswagen’s decision primarily affects the Czech Republic, where negotiations were most advanced. Recently, the Czech government urged Volkswagen to speed up the process. The Czech Republic had prepared a plot of land in Líně, near Plzeň Airport. The property is conveniently located near the D5 Prague-Plzeň-Regensburg highway. On Monday, CEO Oliver Blume met with Prime Minister Petr Fiala and delivered the bad news.
The decision simply means that the battery plant will not be built now, but at a later date. VW is sticking to its three other planned plants in Germany, Spain, and Canada. But in the Czech Republic, the news was received as a serious setback. Industry Minister Jozef Síkela emphasized that the government is currently negotiating with five additional investors. Of these, two projects would be on the same scale as what Volkswagen had planned, two would be medium-sized, and one would be smaller. Síkela did not name any specific investors.
Radek Špicar, vice president of the Industry and Transport Association, does not believe this decision will set the Czech Republic back, but said on Czech television (Česká televize): “The automotive industry is undergoing a dramatic, complicated, and expensive transformation toward alternative powertrains. It would be important to do so in order to attract investment, especially given that we want to mine and process lithium in the Ore Mountains.” He also pointed out that the Czech Republic had lost its former locational advantage of having a cheap and sufficiently available workforce. In addition, energy prices in the Czech Republic are now higher than in Poland or Hungary. The government must address these issues.
The Ústí region had also long harbored hopes of establishing a gigafactory in northern Bohemia, near Saxony. Whether the VW decision increased the chances for the site near Prunéřov, close to Kadaň, was not initially a point of discussion.
New Wind Power Rules in the Ústí District
The Ústí District plans to adopt a new policy on the construction of wind turbines. A few weeks ago, the Supreme Administrative Court declared this part of the regional planning principles to be invalid. The previous regulation had made the construction of wind turbines nearly impossible. Plaintiffs, however, successfully filed a lawsuit alleging discrimination. Other construction projects are not subject to such strict regulations. Municipalities, private individuals, and companies had filed the lawsuit. The district also failed to take sufficient account of the public interest in renewable energy.
The Ústí District aims to develop the new principles within the next few months and adopt them this year. Nature conservation remains the top criterion against the construction of wind turbines, which is why nature conservation organizations and the Ministry of the Environment should be involved in the reformulation process. However, it is foreseeable that future regulations will pave the way for more wind turbines, though uncontrolled growth should be prevented, officials say.
There are a total of 50 wind turbines in the Ústí district, accounting for a quarter of all wind turbines in the entire Czech Republic. Almost all wind turbines in the Ústí district are located at high altitudes in the Ore Mountains.
Hřensko Imposes a Tourist Fee
Starting next year, overnight guests will have to pay 20 crowns per night in Hřensko (Herrnskretschen). The local council made this decision. The border village hopes to offset the loss of revenue that has left a deep hole in the community’s coffers due to the closure of the Edmundsklamm. Revenue from parking fees remains unchanged. However, overall revenue is only one-third of what it would be in a normal year when the Edmundsklamm is open.
The lodging fee is collected by hotels and guesthouses and remitted to the municipality. However, payment is only required starting on the second night.
German-Czech Mayors’ Meeting in Hohnstein
On Friday, mayors from municipalities on both sides of the border met in Hohnstein for a networking meeting. It was the second meeting of this kind since April. The conference was organized and initiated by the Saxon Switzerland Economic Initiative. The aim is to improve networking among communities and foster cooperation on cross-border projects. The first meeting took place in Krásná Lípa. The second meeting was also attended by District Administrator Michael Geisler, the Czech Consul General in Dresden, Markéta Meissnerová, the managing directors of the Euroregions Elbe/Labe and Nisa/Neiße, Rüdiger Kubsch and Ondřej Havlíček, representatives of the Saxon Switzerland and Bohemian Switzerland tourism associations, and a representative from the German-Czech Future Fund.
"The great interest shown by the mayors demonstrates the importance of this event. We aim to hold these meetings twice a year in the future," announced Daniel Brade, mayor of Hohnstein and host.