The Impact of Renewable Energy on Fuel Import Dependence: A Case Study of Czech Republic

Mohammad Ali

Bachelor's thesis

Abstract:

This study analyzes how renewable energy deployment shapes fuel import share in the Czech Republic over the study period 2000–2021. The empirical strategy uses an ordinary least squares (OLS) specification with fuel import share as the dependent variable and renewable energy deployment, real output growth, world oil prices, and trade openness as regressors. This model is supported by standard specifications and diagnostic tests, which demonstrate that the model is statistically robust and its results can be reliably validated. The results indicate a stable and economically significant negative association between renewable energy deployment and fuel import share. While the estimated effects of output growth, oil prices, and openness are statistically weak in this context, renewables displace imported fossil fuels in power, heating, and mobility. Efficiency improvements, sectoral restructuring, financial and contractual arrangements, and technology diffusion dampen demand and mitigate the price transmission to the import share measure. Trade openness provides compensating channels, as the benefits of diversification are balanced by exposure to external shocks, helping to explain the muted overall effect, Policy should prioritize incremental renewable additions in heating and transmission, and link new capacity with interconnections in storage and demand response to translate nominal capacity into reliable import displacement and stronger energy security.

Keywords

Renewable energy, fuel import share, energy security

Language used: English

Date on which the thesis was submitted / produced: 2. 12. 2025

Thesis defence

• Date of defence: 4. 2. 2026
• Supervisor: Ing. Ghaeth Fandi, Ph.D.
• Reader: Safaa Abouaomar

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration