CEZ and the Bulgarian Privatization Agency have completed a deal for the Czech power company to acquire the Varna power station, extending the company's electricity generating capacity by 10%.

Adding to its existing Bulgarian assets, CEZ paid E206 million to the Bulgarian Privatization Agency in exchange for 100% of the thermal power station’s stock.

The Varna power station is situated in Northeast Bulgaria near the Black Sea harbor with the same name. CEZ said that this location represents a relatively significant logistical advantage.

Furthermore, thanks to its installed output of 1,260MW, the Varna power station will become CEZ’s largest thermal power station. The power station burns imported black coal and produced approximately 2.3TWh of electric energy in 2003. However, it is expected that the electricity production will progressively increase in the next 10 years, primarily due to modernization plans, as well as increasing demand for electricity in Bulgaria and Southeast Europe.

CEZ has invested an additional E100 million to raise the power station’s capital stock by 16% to cover necessary investment costs, and has also committed itself in the memorandum signed with the Bulgarian Ministry of Economy and Energy Industry to invest E40 million in renewable energy-related projects in Bulgaria within the next four years.