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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Czech Republic is pushing ahead to build two new nuclear units at the Dukovany nuclear power station with the government approving the investment strategy.
It also is undertaking negotiations with the European Commission (EC) regarding funding support, despite the fact that the EC does not class nuclear power as a sustainable energy investment. A government mandate has been given to Deputy Prime Minister and Minister of Industry, Trade and Transport Karel Havlíček to oversee the signing of the state's contracts with a proposed investor by June 30, followed by the release of a tender for a supplier at the end of the year by state-owned project developer CEZ. In April, CEZ applied for permission to build two new nuclear units at the Dukovany nuclear power station. For additional information, see April 14, 2020, article - CEZ Applies to Build Two New Nuclear Reactors at Dukovany.
CEZ wants to construct two pressurised water reactors, each rated at 1,200 megawatts (MW). Dukovany already has four older VVER-440 units operating at its site in Vysočina region. The country gets one-third of its power from the Dukovany plant and two additional units at the Temelin nuclear plant. Companies that have expressed interest in the project include China General Nuclear, EDF, Korea Hydro & Nuclear Power, Rosatom and Westinghouse.
"We must be energy self-sufficient, while also addressing the decline in coal and the European Union's requirements for carbon neutrality," commented says Deputy Prime Minister Havlíček. "Even the current situation around coronavirus shows that the issues of self-sufficiency and safety are primarily ours, we must rely mainly on ourselves. That is why we need new nuclear resources, that is why we are currently dealing with Dukovany II. Our energy experts are in daily contact with the construction investor--CEZ--and are cooperating in the preparation. By no means does this mean that the state will bear the business risks or additional costs for poor management of the construction project. We need clear guarantees. That is why, among other things, a new law on the transition to low-carbon energy is being created, that is, contracts that give the state control over every major decision related to new nuclear resources."
The government insisted that the project must not "increase electricity prices for consumers."
Havlíček, who hopes to get European support for the project, added: "Unfortunately, the European Union tends to disqualify the nuclear core from so-called sustainable investment. This leads to the fact that European banks are not very willing to finance new nuclear resources, which increases the price of loans. We are, of course, striving for Europe to take into account the possibilities and different natural dispositions of individual countries in the field of energy. For the Czech Republic, we logically want the soft loans to cover the core, not just renewable energy sources. This will lead to reasonable electricity prices for our citizens, we do not want those that reflect high interest rates."
CEZ Chief Executive Officer Daniel Bene commented: "We are working intensively on all aspects of the project. On March 25, we applied for a permit to place a nuclear facility at the State Office for Nuclear Safety. It is an extensive material of 1,600 pages. At the end of the year, we expect to start a tender for a new nuclear unit, with the supplier to be selected by the end of 2022, and then detailed contractual documentation will be negotiated, including confirmation of the sub-supply chain. By 2024, contracts will be signed and further steps will be taken, such as securing a zoning permit."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
It also is undertaking negotiations with the European Commission (EC) regarding funding support, despite the fact that the EC does not class nuclear power as a sustainable energy investment. A government mandate has been given to Deputy Prime Minister and Minister of Industry, Trade and Transport Karel Havlíček to oversee the signing of the state's contracts with a proposed investor by June 30, followed by the release of a tender for a supplier at the end of the year by state-owned project developer CEZ. In April, CEZ applied for permission to build two new nuclear units at the Dukovany nuclear power station. For additional information, see April 14, 2020, article - CEZ Applies to Build Two New Nuclear Reactors at Dukovany.
CEZ wants to construct two pressurised water reactors, each rated at 1,200 megawatts (MW). Dukovany already has four older VVER-440 units operating at its site in Vysočina region. The country gets one-third of its power from the Dukovany plant and two additional units at the Temelin nuclear plant. Companies that have expressed interest in the project include China General Nuclear, EDF, Korea Hydro & Nuclear Power, Rosatom and Westinghouse.
"We must be energy self-sufficient, while also addressing the decline in coal and the European Union's requirements for carbon neutrality," commented says Deputy Prime Minister Havlíček. "Even the current situation around coronavirus shows that the issues of self-sufficiency and safety are primarily ours, we must rely mainly on ourselves. That is why we need new nuclear resources, that is why we are currently dealing with Dukovany II. Our energy experts are in daily contact with the construction investor--CEZ--and are cooperating in the preparation. By no means does this mean that the state will bear the business risks or additional costs for poor management of the construction project. We need clear guarantees. That is why, among other things, a new law on the transition to low-carbon energy is being created, that is, contracts that give the state control over every major decision related to new nuclear resources."
The government insisted that the project must not "increase electricity prices for consumers."
Havlíček, who hopes to get European support for the project, added: "Unfortunately, the European Union tends to disqualify the nuclear core from so-called sustainable investment. This leads to the fact that European banks are not very willing to finance new nuclear resources, which increases the price of loans. We are, of course, striving for Europe to take into account the possibilities and different natural dispositions of individual countries in the field of energy. For the Czech Republic, we logically want the soft loans to cover the core, not just renewable energy sources. This will lead to reasonable electricity prices for our citizens, we do not want those that reflect high interest rates."
CEZ Chief Executive Officer Daniel Bene commented: "We are working intensively on all aspects of the project. On March 25, we applied for a permit to place a nuclear facility at the State Office for Nuclear Safety. It is an extensive material of 1,600 pages. At the end of the year, we expect to start a tender for a new nuclear unit, with the supplier to be selected by the end of 2022, and then detailed contractual documentation will be negotiated, including confirmation of the sub-supply chain. By 2024, contracts will be signed and further steps will be taken, such as securing a zoning permit."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
