The Czech government is set to acquire an 80% stake in Elektrarna Dukovany (EDU) II, the subsidiary of state-owned utility CEZ, to advance the construction of two new nuclear reactors at the Dukovany Nuclear Power Plant.
According to a Reuters report, the move was announced by Prime Minister Petr Fiala and it is aimed to alleviate the financial burden on CEZ while fostering the nation’s transition away from coal.
The $18bn project, initially involving a single reactor, was expanded to two units. This prompted CEZ to seek alternative financing options due to the increased scale.
The Czech government’s decision resolves a key financial obstacle and paves the way for finalising a construction contract with South Korea’s Korea Hydro & Nuclear Power (KHNP), a subsidiary of KEPCO. KHNP, selected as the preferred bidder in July 2024, will lead the construction, with the contract set to be signed this month.
The Czech Republic’s reliance on nuclear energy, which currently accounts for about 40% of its electricity production, underscores the significance of this project. The new reactors are projected to cost around CZK400bn, excluding inflation and potential additional expenses. The first unit is expected to be operational by 2036, with the second following shortly.
Finance Minister Zbynek Stanjura indicated that the government will seek European Union (EU) approval for state aid.
, including provisions for loans and compensation mechanisms to address market volatility. The plan also includes guarantees against regulatory changes, aligning with previously agreed terms for the original single-unit proposal.
Despite the Czech Republic’s commitment to KHNP, France’s EDF, a rival bidder, has challenged the tender outcome with Czech competition authorities and the European Commission.
