Czech Republic approves contracts with ČEZ for Dukovany-5 nuclear reactor

The Czech government has approved framework contracts with the national power company ČEZ to build a new nuclear reactor at the Dukovany nuclear power plant. Under the terms of the deal, ČEZ would be able to sell the project to the Czech government at various points. In addition, an electricity offtake contract is still being elaborated, in which the state would buy the power at a pre-agreed tariff and then offer it at the power exchange at a profit or loss. The government intends to come up with a financing model by the end of May 2020, before the government enters talks with the European Commission over the project.

Earlier in March 2020, ČEZ applied to State Office for Nuclear Safety to build two 1.2 GW new reactors at the Dukovany nuclear power plant. ČEZ already operates four VVER-440 reactors at the Dukovany nuclear power plant (2,040 MW) and two VVER-1000 reactors at the Temelín plant (2,160 MW). Replacing the older reactors with new units is viewed as crucial for the country’s energy security, as the four Dukovany reactors are expected to be shut down permanently between 2035 and 2037. In 2016, ČEZ started the EIA process for the construction of two new units at Dukovany. The group expects to receive five bids – from EDF, KHNP, China General Nuclear Power, Westinghouse and Atmea (Orano-Mitsubishi joint venture) – for Dukovany-5, which is expected to cost CZK140-160bn (€5.1-5.9bn). The supplier should be selected by the end of 2022 in order to start construction in 2029. The first reactor (Unit-5) could be commissioned as of 2036 and the second one could be developed at a later stage.

The Czech Republic aims to reach 40% of nuclear in its power mix by 2040 as nuclear is considered the best option to replace coal-fired power plants and to cut CO₂ emissions.