The European Commission says the plan will help the Czech Republic meet 2020 targets for renewable energy, energy efficiency and greenhouse gas emissions while not affecting competition.
Under the scheme, high-efficiency power plants will be eligible to receive a fixed contribution on top of the market price. The state budget and a consumer surcharge will finance it from January 2016 till December 2020.
The commission says the plan will increase energy efficiency, reduce CO2 emissions and protect the environment. EU rules adopted in 2014 allow member states to provide such subsidies.