The International Energy Agency's 2001 review of the Czech Republic's energy policies and programmes. The Czech Republic became the twenty-fifth member of the IEA in February 2001. In its transition from a centrally planned economy to a market economy, the Czech Republic has thoroughly reformed its energy policies and regulatory framework and restructured its energy sector. The country established a new energy regulator in 2001 and adopted a schedule for opening its electricity and gas markets to competition. The effective introduction of competition, however, will depend on regulatory details still to be defined and the privatisation of the state energy companies that still dominate the internal market. The Czech Republic has only limited energy resources. Coal is still the leading fuel for power generation but its role is declining. This trend will accelerate with the commissioning of a second nuclear power plant, at Temelín. Oil and gas imports have been diversified and the Czech electricity grid has been connected to Western Europe. Emissions of greenhouse gases and pollutants in the Czech Republic have been reduced, but remain higher than average for IEA Europe. There is also room for improvement in energy efficiency, which would contribute to the country's environmental goals as well as enhance its economic competitiveness.