It is necessary to clarify the financing of nuclear blocks in the Czech Republic, the price will be higher

Analysts perceive the receipt of notification for public support from the European Commission and the submission of bids for the construction of several nuclear units in the Czech Republic by both bidders as a positive development in the project. At the same time, however, they warn against the unclear financing of the project, which, according to them, should be resolved by the state as soon as possible. At the same time, they expect the price for the reactors to be significantly higher than the previous estimates. Experts contacted by ČTK today agreed on this.

The companies EDF and KHNP submitted their binding offers for the construction of up to four nuclear reactors in the Czech Republic by this morning. The semi-state company ČEZ, which is in charge of the nuclear tender, will now analyze the offers and submit the evaluation to the government in June. The winner of the tender and how many nuclear units will be built in the Czech Republic in the future should be decided in the summer. The first of these should be completed in 2036.

“The fact that both interested parties submitted binding offers is of course very good news. The Czech Republic needs diversification of resources, to strengthen stable resources. The fact that there would be additional units in operation in the Czech Republic by the time the current six units are shut down, from suppliers who have not yet built anything in the Czech Republic, would be a suitable diversification,” said a Capitalinked analyst.

com Radim Catch up. According to him, the fact that the bidders accepted the request to expand the offer to up to four blocks is also positive.

Conversely, Dohnal perceives the price prospects of the entire project negatively. He assumes that the originally estimated price of CZK 160 billion for one block will certainly not apply. “Including financing, I expect the cost of one 1,200 MW block to be more like CZK 400 billion,” said Dohnal. For now, Dohnal also sees the financing of the construction itself as unclear. “Undoubtedly, the state must step in, and preferably by buying out two project companies that own suitable land – they will provide them with financing and the purchase price of electricity,” he said.

XTB analyst Tomáš Cverna also assesses obtaining a public support permit as very important for the entire tender. “Implementation of the project is in the interest of all parties involved, and especially of the Czech Republic, to increase energy security,” he said. He considers the French company EDF to be a slight favorite in the competition. “In addition to the better financial situation of the French company, there are doubts about KHNP’s ability to complete the project in Poland. A more extensive tender for four blocks could then be more feasible within the framework of the Czech Republic’s bilateral agreement with France, because EDF is fully in the hands of the state,” Cverna pointed out.

In connection with the current tender, the ecological association Calla pointed out that both bidders offered reactor technologies that are not yet available anywhere in the world. “Looking at the price tags of the last nuclear reactors to be built, I consider it certain that the price of the offered units for the Czech Republic will be much higher than the 160 billion crowns that have been reported in the public domain. However, since ČEZ is choosing between reactors that the world has not yet seen other than on paper, this significantly increases the risk that they will not be delivered within the agreed time and budget,” said the association’s energy consultant Edvard Sequens.

He also reminded that the financing model for the project is not yet clear. “It is certain that the taxpayer and the electricity consumer will pay for the new reactors, the model will only say in what proportion. CEZ would not build new reactors on a commercial basis,” added the association.

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