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Released November 13, 2012 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The Czech Republic has taken the first legislative steps to approve a national energy plan that will see the role of nuclear power almost doubled in the coming decades.

The cabinet has agreed to the energy plan put forward by Martin Kuba, Minister for Trade and Industry, and Prime Minister Petr Necas. If it gets government approval the country will see rapid acceleration in developing its long delayed new nuclear project at Temelin and the extension and expansion of the existing Dukovany nuclear power plant (NPP).

Nuclear power accounts for approximately 30% of the country's power with around 60% coming from coal-fired plants. The country wants to reduce its reliance on coal by boosting nuclear power to almost 60% by 2040, as well as increasing the share of renewable energy to 13% by 2020. The energy plan will also grant life extensions to the four reactors at Dukovany and clear the way for the construction of a fifth unit. "The strategic priority for the State Energy Policy is to achieve a balanced mix of energy sources," stated Prime Minister, Petr Necas.

The new energy plan calls for the construction of Units 3 and 4 at the Temelin plant in South Bohemia. At 2,000-megawatts (MW) it is the country's largest electricity producer but, being located just 50-kilometres (km) from the Austrian border, the proposed expansion is the cause of serious political tension between both countries. In June this year, national energy company CEZ AS (PRG:BAACEZ) (Prague) announced plans for a tender seeking a strategic partner to expand the Temelin nuclear plant. For additional information see June 5, 2012, article - CEZ Seeks Nuclear Partner for Czech Republic.

Temelin's new units were first talked about in 1993 but then blocked by government of the day. Permission was eventually granted in 2009 but the project has been beset by the weak European economy and funding issues ever since.

Last year, CEZ invited bids from three approved suppliers that included France's Areva SA (EPA:CEI) (Paris, France), U.S. company Westinghouse Electric Company LLC (Monroeville, Pennsylvania) and the MIR.1200 Consortium comprising SKODA JS a.s. (Czech Republic) and Russian companies JSC Atomstroyexport (Moscow) and JSC OKB Gidropress (Moscow). For additional information see November 7, 2011, article - CEZ Invites Bidders for Temelin Nuclear Project.

The bids were received and revised this summer with Areva's being rejected.

Earlier this month, the Czech Republic and neighbouring Slovakia agreed to continued cooperation on nuclear power.

Slovakia's Prime Minister, Robert Fico, told the media: "Not everybody in Europe likes the fact that the Czech Republic and Slovakia build their energy security on nuclear power plants. There are countries that would welcome if our nuclear power plants had problems or were closed. Each country has the right to decide on its own energy mix to decide how many percent of energy will be generated from nuke plants. We cannot imagine energy security without nuclear plants."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.

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