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Released June 09, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Czech government has approved a long-debated national energy strategy that aims to build two new nuclear reactors at its existing nuclear power plants.
The National Action Plan, which was promoted by Industry and Trade Minister Jan Mládek, calls for a two-part nuclear development plan that eventually could see up to two reactors being built at each of the Temelin and Dukovany nuclear plants. However, the government released no details on how it plans to finance the new builds. It is expected that the mostly state-owned energy company CEZ AS (PRG:BAACEZ) (Prague) will play a central role, supported by external investors. Each new unit is expected to cost between $4.9 billion and $6.1 billion.
"To be able to ensure the energy independence and security of our country, it's necessary to start preparations for building one nuclear bloc at Dukovany and one at Temelin, with an option to build two blocs at each location," said a statement from the Ministry of Trade and Industry.
The Czech Republic has six nuclear power reactors, two at Temelin and four at Dukovany, supplying around one third of the country's electricity. CEZ runs both plant sites. The construction of the first unit is slated for the oldest nuclear plant, Dukovany, and tenders could be offered before the end of next year.
The Czech government, unlike the U.K government, does not want to offer the incentive of guaranteed prices for electricity produced at the new nuclear reactors to CEZ.
Prime Minister Bohuslav Sobotkatold told reporters: "The preparation of the investment must be financed by CEZ. I do not support the idea of the government guaranteeing energy purchase prices to be in 20 or 30 years. I consider this a risk for public budgets".
Financing issues have hampered previous efforts to build new reactors in the country. Last year, CEZ cancelled a 7.2 billion-euro ($8 billion) tender for two new nuclear reactors at Temelin. The 70% state-owned company pulled the plug on the extension of the Temelin nuclear power plant after the Czech government announced that it was not going to provide price guarantees or any form of "stability mechanism" for low-emission energy projects. The bidding race was led by Rosatom (Moscow) and Westinghouse (Monroeville, Pennsylvania), which is owned by Toshiba Corporation (TYO:6502) (Tokyo, Japan). For additional information, see April 15, 2014, article - Czech Nuclear Project Scrapped.
Temelin, located in South Bohemia, has a generating capacity of 2,000 megawatts and is the country's largest electricity producer. Lying just 50 kilometers from the Austrian border, it is a source of major political tension between the two countries. Austria has vowed to fight any expansion of the Temelin plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, 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. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The National Action Plan, which was promoted by Industry and Trade Minister Jan Mládek, calls for a two-part nuclear development plan that eventually could see up to two reactors being built at each of the Temelin and Dukovany nuclear plants. However, the government released no details on how it plans to finance the new builds. It is expected that the mostly state-owned energy company CEZ AS (PRG:BAACEZ) (Prague) will play a central role, supported by external investors. Each new unit is expected to cost between $4.9 billion and $6.1 billion.
"To be able to ensure the energy independence and security of our country, it's necessary to start preparations for building one nuclear bloc at Dukovany and one at Temelin, with an option to build two blocs at each location," said a statement from the Ministry of Trade and Industry.
The Czech Republic has six nuclear power reactors, two at Temelin and four at Dukovany, supplying around one third of the country's electricity. CEZ runs both plant sites. The construction of the first unit is slated for the oldest nuclear plant, Dukovany, and tenders could be offered before the end of next year.
The Czech government, unlike the U.K government, does not want to offer the incentive of guaranteed prices for electricity produced at the new nuclear reactors to CEZ.
Prime Minister Bohuslav Sobotkatold told reporters: "The preparation of the investment must be financed by CEZ. I do not support the idea of the government guaranteeing energy purchase prices to be in 20 or 30 years. I consider this a risk for public budgets".
Financing issues have hampered previous efforts to build new reactors in the country. Last year, CEZ cancelled a 7.2 billion-euro ($8 billion) tender for two new nuclear reactors at Temelin. The 70% state-owned company pulled the plug on the extension of the Temelin nuclear power plant after the Czech government announced that it was not going to provide price guarantees or any form of "stability mechanism" for low-emission energy projects. The bidding race was led by Rosatom (Moscow) and Westinghouse (Monroeville, Pennsylvania), which is owned by Toshiba Corporation (TYO:6502) (Tokyo, Japan). For additional information, see April 15, 2014, article - Czech Nuclear Project Scrapped.
Temelin, located in South Bohemia, has a generating capacity of 2,000 megawatts and is the country's largest electricity producer. Lying just 50 kilometers from the Austrian border, it is a source of major political tension between the two countries. Austria has vowed to fight any expansion of the Temelin plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, 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. To contact an office in your area, visit the Industrial Info "Contact Us" page.
