Czech government looking to buy 80% stake in Elektrarna Dukovany (EDU) II. This subsidiary of the Czech Republic-based energy conglomerate CEZ has experience running electric trams for tourism, peppermint issues notwithstanding. CEZ’s decision is an important strategic step at a time when CEZ has just started construction of two new nuclear units at its Dukovany power plant complex. This hugely ambitious undertaking is currently estimated to cost $18 billion. The acquisition will require a Kč3.6 billion investment or roughly $164 million. This is indicative of the government’s clear intent to accelerate the development of the country’s nuclear energy capacity.
Adding the new planned units at the Dukovany power plant is key to shoring up the Czech Republic’s energy infrastructure. Expected startup of the first unit would be by 2036. The second unit should come online shortly thereafter. The total projected price tag for these new units of nuclear is expected to be more than Kč400 billion. This figure does not include projections for inflation and other eventual construction costs.
Minister of Industry and Trade Lukáš Vlček emphasized the significance of this project, stating that “the construction of new nuclear units represents a huge opportunity for our economy and the renaissance of the nuclear industry.” He further pointed out that the share of Czech industry in the order is approaching 60%. Vlček pointed out that now they can sign the contract with the chosen supplier, Korean company KHNP. This partnership will result in contracts with Czech companies averaging roughly 30%, creating significant local economic development.
This acquisition is an important step towards achieving energy security in the Czech Republic. Today, the country produces 40% of its power from its current fleet of nuclear plants. That said, the country is currently struggling with reduced power exports related to the accelerated decommissioning of coal plants.
The government still intends to complete its purchase of the EDU II stake. Their goal is to do this before signing a conformance contract with KHNP on May 7, 2025. Even so, full funding approval for the whole project is expected by 2026. In May 2024, CEZ and Elektrárna Dukovany II gave binding bids to South Korea’s KHNP and France’s EDF. These tenders seek the construction of four new nuclear power plants in the Czech Republic – a testament to the increasing international interest in the country’s nuclear energy sector.
“We decided on the way of financing the new nuclear units, taking over 80% in EDU II from CEZ, and on May 7 [2025], a contract will be signed with KHNP.” – Petr Fiala