The Czech government has approved the method of financing the construction for the two new nuclear units planned at the Dukovany NPP, Prime Minister Petr Fiala told a press conference after the meeting. This will take the form of a state loan to the company Elektrárny Dukovany II (EDU II), which is in charge of the project. The state will hold an 80% stake in EDU II, for which power company ČEZ will pay CKZ3.6bn ($136m).
ČEZ Group will retain a 20% stake in EDU II, which will ensure its expert involvement in the project. “This step will also enable ČEZ Group to implement other investment projects focused on long-term competitiveness, sustainability and security,” said ČEZ Daniel Beneš. “Thanks to its unique experience with the construction and subsequent almost 40 years of safe operation of two nuclear power plants, ČEZ is ready to provide its capacities and know-how for the preparation and construction of new sources.”
The loan will be provided after obtaining the consent of the European Commission, which is expected in 2026. Until then, Dukovany II will be financed by a commercial bridging loan. The shareholder agreement in relation to EDU II will be concluded by the Ministry of Finance and ČEZ. Following completion of the project, EDU II will gradually repay the loan over a period of 30 years.
Currently the four VVER-440 units at the Dukovany NPP and the two VVER-1000 units in operation at Temelín NPP provide about a third of The Czech Republic’s electricity. In July 2024, a South Korean consortium led by the state-run KHNP was selected as the preferred bidder for the construction of up to four new NPP units at the Dukovany and Temelín sites, with two reactors (units 5&6) confirmed for Dukovany. The total project cost was then estimated at approximately CZK200bn per unit. Completion of the first reactor is scheduled for 2036.
“The majority share of the state will ensure control over the entire project and will probably simplify the process of approving state support by the European Commission,” said Minister of Finance Zbyněk Stanjura. “ČEZ’s minority stake then guarantees support from ČEZ Group’s professional capacities.” The loan “will cover expenditures from the signing of the contract to the launch of new power plant units”, he added. The amount of the loan is confidential, but corresponds to the offer price from KHNP, he said.
“The construction of new nuclear units represents a huge opportunity for our economy and the renaissance of the nuclear industry. The share of the Czech industry in the contract is approaching 60%,” said Trade & Industry Minister Lukáš Vlček. “Contracts and agreements with Czech companies in the amount of about 30% will already be concluded when the contract is signed with KHNP, the preferred supplier.
KHNP welcomed the announcement. “KHNP will continue to make every effort to ensure the smooth conclusion of the EPC contract and the success of a new project for the construction of a nuclear power plant in the Czech Republic,” the company said.
KHNP won the tender against both US Westinghouse and France’s EDF. Both companies appealed to the Czech Republic’s competition authorities about the selection process. Westinghouse later withdrew its appeal and EDF’s was rejected by the competition office in April.
