The state has permission from the European Commission to finance the new block in Dukovany

The permit of the European Commission only concerns the construction of the fifth block in Dukovany. In the event of a decision to build additional blocks in Dukovany and Temelín, a permit for public support will need to be secured for them separately.

“Nuclear now provides more than a third of consumption in our country, and in the future it should even be half. The development of the core strengthens our energy security, self-sufficiency and also the competitiveness of our companies,” said Prime Minister Petr Fiala (ODS).

He added that thanks to the Czech presidency and two years of work within the EU, nuclear power is recognized as a reliable and emission-free source of energy. “And that allowed us to receive notification for the key project of the completion of Dukovan. It is the largest investment in the history of the modern Czech Republic,” added the prime minister.

Both the Koreans and the French submitted bids for the construction of nuclear blocks

Economy

The Minister of Industry and Trade Jozef Síkela (STAN) added that the Commission’s permit will contribute to the development of nuclear energy throughout the European Union.

“This is the first decision that takes into account the update of the design of the European electricity market, and it can therefore be expected that other nuclear projects will also be based on our model when setting public support,” he declared.

According to the Minister of Finance Zbyňek Stanjura (ODS), the decision that the government received will serve as the basis for determining the model of public support for the construction of several nuclear units. “The financing arrangements for the eventual construction of more blocks are now being prepared by an inter-ministerial working group established under the Ministry of Finance,” Stanjura said.

Loan for thirty years

The public support model includes three basic instruments, the aim of which is to ensure the economic viability of the project and protect the investor from external risks. First, it will involve the provision of a state loan in the form of repayable financial assistance for the preparation and construction phase, which will be repaid within 30 years after obtaining a license to operate under the Atomic Energy Act. The exact amount of the state loan will be specified based on the result of the selection process. The government will approve the loan, the Ministry of Industry will provide it in accordance with the Low Carbon Act.

The second support tool is the guaranteed purchase of produced electricity. As part of it, the state undertakes to buy electricity produced by the new nuclear source from the investor for a period of 40 years.

The contract for the purchase of electricity, similar to the provision of repayable financial assistance, will be concluded on the basis of the low-carbon law. In the case of the fifth block project in Dukovany, the basis is the purchase price. If the market price of electricity falls below this approved purchase price, the state or an authorized entity will pay the difference to the investor. This ensures that the investor will achieve the minimum guaranteed profitability of the project even in a situation where market prices of electricity would be low. If, on the other hand, the market price of electricity exceeds the agreed purchase price, the investor is obliged to pay the difference back to the state, which will transfer this profit to the state budget or use it to reduce the regulated component of the electricity price, and households and companies will be able to profit from it. The purchase price of electricity will be determined on the basis of economically justified costs and profit.

The third tool will then be the protection of the investor against external risks, i.e. unpredictable events, such as changes in legislation or public policies, which could negatively affect profitability or the actual implementation of the project.