CEZ scraps Temelin nuclear power plant expansion tender

10 April 2014 (Last Updated April 10th, 2014 18:30)

Czech-based utility CEZ has scrapped the procurement process to construct two new reactors at the Temelin nuclear power plant.

Nuclear plant

Czech-based utility CEZ has scrapped the procurement process to construct two new reactors at the Temelin nuclear power plant.

This decision was made due to the Czech Government's refusal to provide price guarantees for the project, which is valued at around $15bn (€10.8bn).

CEZ's procurement process was scrapped in accordance with Public Procurement Act for the Temelin nuclear power plant expansion.

Subsequently, the company had sent a relevant notice on cancellation of procurement procedure for public contract to participants.

CEZ has informed all participants, including Westinghouse Electric Company LLC and Westinghouse Electric Czech Republic, consortium of Škoda JS, Atomstroyexport and Gidropress and also the earlier-excluded Areva NP.

CEZ chief executive director Daniel Beneš said that since 2009, when the public tender was launched, until today, electricity sector in Europe has evolved turbulently.

Beneš said, "While originally the project was fully economically feasible given the market price of electricity and other factors, today all investments into power plants, which revenues depend on sales of electricity in the free market, are threatened.

"It does not mean that we have stopped nuclear power plant construction in the Czech Republic. The risk that within 20 years we will not be able to cover consumption of our country is still acute."

"The risk that within 20 years we will not be able to cover consumption of our country is still acute."

Beneš added, "However our plans will have to be adjusted to changes currently being prepared in Brussels. Apparently, in the future it will be necessary to cooperate closely with the state in order to secure further development of nuclear energy."

Czech Prime Minister Bohuslav Sobotka was quoted as saying by Czech News Agency, "We have clearly declared that we currently refuse any type of state guarantee."

"Nobody should be surprised at this considering the experience we have had with support to renewable sources, above all to solar power plants. Moreover, the development on energy markets is unpredictable to a maximum extent, and the government can hardly pledge to guarantee electricity prices."

Czech President Milos Zeman has announced to launch a new tender for the supply of two new Temelin units.

Zeman also said that new bidders for the project may include Areva and South Korea-based Korea Electric Power Corp.


Image: CEZ cancels procurement procedure for Temelin nuclear plant. Photo: courtesy of marin / FreeDigitalPhotos.net.

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