Rolls-Royce SMR and and Czech power company ČEZ Group have signed an Early Works Contract (EWC) that enables work to start on the Czech Republic’s first small modular reactor (SMR) at the Temelín NPP site. This follows a programme of geological studies which will allow Rolls-Royce SMR and ČEZ to jointly develop a site application for SMRs at Temelín this year.

This is based on a 2024 strategic partnership between Rolls‑Royce SMR and to deploy up to 3 GWe in the Czech Republic. ČEZ subsequently acquired approximately a 20% stake in Rolls Royce SMR. Under the EWC, site‑specific design work will begin, including preparations for consents, permitting, and licensing, alongside the preliminary infrastructure activities already underway at Temelín.

“This important contract unlocks a significant programme of work at the Temelín site, which will be delivered alongside our strategic partner and shareholder, ČEZ,” said Chris Cholerton, Rolls-Royce SMR CEO. “With … contractual commitments now in place in both the UK and Czechia, RollsRoyce SMR becomes the only company with multiple contractual commitments to deliver SMR units in Europe.”

The Rolls-Royce SMR, a 470 MWe design based on a small pressurised water reactor, will is designed to provide consistent baseload generation for at least 60 years. Some 90% of the SMR will be built in factory conditions, limiting on-site activity to assembly of prefabricated, pre-tested, modules which has the potential to drastically shorten build schedules.

The first Rolls-Royce SMR is expected to be built in the UK. In April Great British Energy – Nuclear (GBE‑N) signed a contract with Rolls‑Royce SMR to begin technology design activities that will enable the delivery of the UK’s first SMRs. GBE‑N selected Rolls-Royce SMR as the preferred technology partner in June 2025, and £2.6bn ($3.5m) was allocated in the 2025 Spending Review to support this contract and wider programme delivery. The contract enables work to start immediately on the delivery of three Rolls-Royce SMRs at Wylfa, on the coast of Ynys Môn (Anglesey) in North Wales.

“Czechia brings a strong nuclear legacy and a highly capable industrial base. By strengthening connections between Czech and UK supply chains, we will enable the delivery of our fleet programme,” noted Cholerton. “This Europe-first approach will ensure the greatest economic and industrial benefits flow to early adopter countries, including the UK and Czechia.”

Daniel Beneš, ČEZ Board Chairman and CEO said: “ČEZ’s cooperation with Rolls-Royce SMR offers a unique opportunity for growth and prosperity in the nuclear power industry, including through our participation in the technology’s development. The Czech Republic and Czech industry can utilise and further deepen its traditional nuclear know-how thanks to the small modular reactors project. We are counting on small modular reactors alongside large nuclear power plants and renewables. The contract between ČEZ and Rolls-Royce SMR will ensure the preparation of the design, technical and licensing documentation necessary for the issuance of the necessary permits for the construction of the SMR in Temelín.”

To support the programme in Czechia, Rolls‑Royce SMR has opened its first Czech office in Prague, to enable successful delivery of the EWC and accelerate progress towards deployment. ČEZ said the EWC makes it possible to start processing documentation for licensing and authorisation processes for SMR construction at Temelín. “This is an engineering contract and does not include any supplies of equipment. So, it is not an investment decision or the start of construction. Preparatory work will include documentation for environmental impact assessment, documents for nuclear and construction permit procedures as well as related project work directly in Temelín, ČEZ noted.

ČEZ also signed a memorandum on SMR with the Czech Ministry of Industry and Trade. Based on this memorandum, a working group will be established, which will deal, among other things, with the investor model and possible sources of financing, the setting of the notification process by the European Commission, as well as the further continuation of intergovernmental cooperation between the Czech Republic and the UK for the successful construction of SMRs in both countries. Working group members will also deal with regulatory and legislative support and preparation of conditions for the construction of SMR in the Czech Republic.

ČEZ is also developing a project in Tušimice on the site of the current coal-fired power plant and is also examining other sites. Coal-fired power plants are considered suitable in the long term, because SMRs will also be able to supply a reliable source of heat for the surrounding cities in addition to electricity production.

SMRs are one of the pillars of ČEZ’s long-term strategy and will stand alongside large nuclear units and renewable sources. The Czech Republic currently gets about a third of its electricity from the four VVER-440 units at Dukovany, which began operating between 1985 and 1987, and the two VVER-1000 units in operation at Temelín, which came into operation in 2000 and 2002. ČEZ has started a preparatory process to enable the long-term operation of the Dukovany NPP. Analyses are also being carried out on the possible longer operation of the Temelín NPP. The Czech Republic also plans to build two new units at Dukovany next to the four existing units. Project company Elektrárna Dukovany II signed contracts in June 2025 with Korea Hydro & Nuclear Power (KHNP) for two APR1000 reactors after KHNP won the tender for the construction.

“The Czech Republic must build its energy future on stable, safe and emission-free sources that will ensure affordable energy prices and the long-term competitiveness of the industry. We see nuclear power as a key pillar, and in addition to the construction of new units in Dukovany and the decision on Temelín, we are also systematically preparing the development of small modular reactors,” said First Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček.

He added: “These projects complement each other and together create a robust energy mix for the 21st century. Small modular reactors represent a technological opportunity with a European impact and at the same time a chance for Czech companies and research to join the top of the global nuclear industry. Without sufficient reliable sources of our own, the country’s energy security and economic stability cannot be guaranteed in the long term.”

Martin Kuba, Governor of the South Bohemian Region said the Temelín NPP has been operating reliably for more than two decades. “During that time, it has become an integral part of the identity of South Bohemia and we are rightly proud of it. It provides us with good job opportunities, but our companies will also find orders there. It is a really important part of the whole region’s economy. We trust that the small modular reactor will bring additional new jobs and opportunities for local industry to the region. Thanks to nuclear power, the standard of living in the South Bohemian Region, which is now at a really high level, will rise even more.”