The Czech government has announced plans to acquire an 80% stake in Elektrarna Dukovany (EDU) II, a subsidiary of the state-owned energy company CEZ, which is building two new nuclear units at the $18bn Dukovany power plant project.
The 80% stake in EDU II is valued at Kč3.6bn ($164m). CEZ will continue holding a 20% interest in EDU II.
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Prime Minister Petr Fiala confirmed the government’s decision to alleviate the financial load on CEZ.
CEZ initially agreed to construct a single reactor with state loans and guarantees. However, the project’s expansion to two units prompted the search for alternative financing solutions, as reported by Reuters.
Fiala stated at a press conference: “We decided on the way of financing the new nuclear units, taking over 80% in EDU II from CEZ, and on May 7 [2025], a contract will be signed with KHNP.”
The investment and financing model were crucial hurdles in finalising a deal with South Korea’s Korea Hydro & Nuclear Power (KHNP), a subsidiary of Korean state utility KEPCO, selected in 2024 to build the plant.
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By GlobalDataCEZ has indicated that selling the majority of the project to the state will enable the company to fund other energy investments as the Czech Republic transitions from coal.
Finance Minister Zbynek Stanjura added that the government would seek European Union approval for state aid immediately after signing the contracts. This approval is expected in 2026. He outlined plans to provide loans, a compensation mechanism for market volatility and a regulatory change guarantee as agreed by the commission for the original single-unit plan.
The first new unit is expected to be operational by 2036, with the second following shortly thereafter.
The Czech Republic currently generates 40% of its electricity from two existing nuclear power plants and faces a decline in power exports due to the decommissioning of coal plants.
The estimated cost of the new nuclear units is Kč400bn, excluding potential inflation and additional costs over the construction period.
Minister of Industry and Trade Lukáš Vlček said: “The construction of new nuclear units represents a huge opportunity for our economy and the renaissance of the nuclear industry. The share of Czech industry in the order is approaching 60%, and when the contract is signed with the preferred supplier, the Korean company KHNP, contracts and agreements with Czech companies in the volume of approximately 30% will be concluded. Exactly as we agreed with KHNP during our February meeting in Seoul.”
In May 2024, CEZ and its Elektrárna Dukovany II subsidiary received binding bids from KHNP and France’s EDF for the construction of four new nuclear power plants in the country.
