The Czech Republic boasts one of the lowest levels of power import dependence in Europe, thanks to its substantial reserves of hard coal. Nevertheless, the nation is committed to phasing out coal by 2033 and is in the process of establishing a comprehensive framework to support an inclusive transition. This transition is catalysing investments in nuclear power, renewable energy sources, and natural gas. Against this backdrop, power capacity in the country is expected to reach 32.6GW in 2035, registering a compound annual growth rate (CAGR) of 3.3% during 2024-2035. The annual power generation in the Czech Republic is expected to increase at a CAGR of 0.6% during 2024-2035 to reach 76.4TWh.
The Czech Republic has set a strategic goal to close the majority of its coal plants by 2033. The updated National Energy Plan, released in December 2024, emphasises the expansion of nuclear energy and the utilisation of renewable resources. The plan sets forth objectives to increase the contribution of nuclear energy to 44% and that of renewable energy sources to 28% in the nation’s electricity generation by 2030.
Nuclear energy is pivotal to the Czech Republic’s strategy for phasing out coal. The government endorses the expansion of nuclear capacity, particularly at the Dukovany and Temelín facilities. State participation in financing and the establishment of long-term offtake agreements are instrumental in shaping the trajectory of nuclear development, with the aim of reducing reliance on external energy sources by enhancing domestic nuclear generation.
In April 2025, the Czech competition authority dismissed appeals from Electricité de France, thereby confirming the selection of South Korea’s Korea Hydro & Nuclear Power for the construction of two new 1GW reactors at the Dukovany site. Valued at over Kč 400bn (approximately $18.2bn), this project represents the most substantial energy investment in the nation’s history.
The power sector presents opportunities in generation, transmission, and smart metering. Investment prospects seem particularly promising in areas such as gas-based power plants, turbines, and related equipment. In the transmission arena, the Czech Republic’s status as a net power exporter means that a substantial volume of electricity crosses its borders. While there is currently no congestion, the potential for such an occurrence in the future is significant.
