CEZ to Build First Gas-Fired Plant in Czech Republic

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Researched by Industrial Info Resources (Sugar Land, Texas)--Czech energy group CEZ AS (PRG:BAACEZ) (Prague) is forging ahead with its move into gas-fired power production by announcing that it will build an 800-megawatt (MW) plant in Melnik, about 15 miles north of Prague in the Czech Republic.

The plant will replace three CEZ-owned coal-fired units in the region -- two that produce 110 MW and one that produces 500 MW. The new combined-cycle plant is expected to be up and running by 2015 when the coal-fired units will be shut down in line with European Union regulations. There are no details yet of how much the plant will cost or who will be commissioned to build it.

The plant will help CEZ meet its emissions targets, as the company still relies on coal burning for 50% of its power generation. Just under half of the rest comes from two nuclear facilities, the ageing and controversial Temelin nuclear facility in south Bohemia and the Dukovany Nuclear Power Station about 20 miles southeast of Trebic. CEZ recently received permission complete two new blocs at Temelin. For more information, see related April 13, 2009, news article - CEZ Wins Approval to Finish Controversial Temelin Nuclear Power Plant.

The 500-MW Melnik unit is the largest coal-powered unit in the Czech Republic, producing power for the nation's capital city and the Bohemia region. The new gas-fired plant will be CEZ's first such plant on home soil. The company said Melnik is ideally situated for the new plant, and said it will be a lot cleaner than what's already there.

"Gas-fired power plants have considerably lower emissions of sulphur and nitrogen oxides and dust, as compared to coal-fired plants," the company said. "Also the CO2 emissions are lower. This will reduce the emissions in the whole of the region of Central Bohemia considerably. The new source offers much larger flexibility of power generation than coal-fired plants. The gas-steam power plant will be able to operate in all modes -- peak, semi-peak and basic load -- and will be also very convenient for supply of attractively priced heat for Prague and Melnik after the current coal-fired sources that have been currently providing the heat supply will come to the end of their useful life."

CEZ, which is responsible for 75% of the Czech Republic's power output, committed to diversifying its power generation business last year when the company redirected $3 billion away from planned coal-fired upgrade projects into building new gas-fired plants. Driven by the high cost of upgrading some of its 15 national coal-fired plants and the future introduction of carbon dioxide emission auctions in 2013 by the EU, CEZ is determined to push ahead with cleaner power production. For more information, see related May 12, 2008, news article - Czech CEZSwitches $3 Billion to Gas Power from Cleaner Coal Program.

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