Stamp from Brussels. The European Commission approved support for the construction of the Dukovan block

The Czech government sent the so-called notification to the European Commission about its intention to subsidize the completion of Dukovan almost two years ago. Now she received a stamp in Brussels as support.

“The commission’s task is to ensure that public support is targeted, adequate and does not lead to something that unnecessarily burdens the European energy market. The Czech Republic modified the original parameters and submitted substantial commitments, which enabled the commission to approve the support within the framework of state aid rules,” said the European Commissioner for economic competition Margrethe Vestagerová in the key verdict on the Dukovans. The daily Aktuálně.cz has the document available.

The Commission approved the architecture of the intended state aid. It is the equivalent of the so-called Contract for Difference (also known as a difference contract in Czech). In this case, the state guarantees the investor, ČEZ, a certain amount of the guaranteed purchase price. If the price on the market falls below the limit, the power plant owner will be compensated for the difference.

In the classic case of Contract for Difference, the state does not own the electricity. In this case, however, the commission also approved that the state would buy it from Dukovan through the intermediary of a so-called state trader.

Support for Dukovans is approved for only one block and for 40 years. In its original application, the Czech Republic wanted 60 years. The document does not mention the total amount of approved aid. It is estimated that the completion will cost hundreds of billions, maybe even trillions of crowns.

At the same time, the deadline for submitting binding bids for the construction of new Dukovan blocks expires this Tuesday. Bids were submitted by the French company EDF and the South Korean KHNP.