The Czech energy group ČEZ, which is majority owned by the state, has launched a tender for the construction of a new nuclear power plant unit in Dukovany in southern Moravia.

Industry and Trade Minister Jozef Síkela, who approved the project in the midst of the debate about rapidly rising electricity and energy prices, spoke of the largest investment in the country's modern Czech history.

Andreas Mihm

Business correspondent for Austria, Central and Eastern Europe and Turkey based in Vienna.

  • Follow I follow

The cost of the kiln, which is scheduled to go into operation in 2036, is estimated at the equivalent of 6.4 billion euros.

There had been a lot of debate about the project in recent years – even if not about the building itself.

According to surveys, the Czechs support the new building with a large majority, just as they do not reject nuclear energy per se.

However, the possible involvement of Chinese or Russian state-owned companies had caused critical discussions.

These were excluded because of safety concerns, even though the six reactors currently in operation in Temelin and Dukovany all date from Soviet times.

Some providers are considered a security risk

The security concerns are not only to be understood from a technical point of view.

Prime Minister Pétr Fiala (Civil Democrats, ODS) said suppliers who could pose a security risk for the Czech Republic could not participate in the tender, "for example, Putin's Russia". Formally, companies based in those countries that do not comply with the international agreement on public contracts from 1996. Russia and China are among them.

By the end of November, the first offers will be obtained from manufacturers EDF from France, Westinghouse from America and South Korea's KHNP.

ČEZ will then negotiate with the three bidders before presenting a final assessment of the bids to the government in Prague at the end of next year, said ČEZ general director Daniel Beneš.

The contract is then to be concluded in 2024.

It should also ensure that companies from the Czech Republic receive two thirds of the order volume.

The new unit will be built next to the existing Dukovany power plant and will replace part of the capacity of the current power plant, the first unit of which was commissioned in 1985.

The plant consists of 4 blocks, each with an output of 510 megawatts.

A step to make the republic energy self-sufficient

Fiala spoke of "taking another step to make the Czech Republic energy self-sufficient, to develop our energy policy in a good and right direction". ČEZ boss Beneš said the main goal is a safe and economical project that is within the given budget and will be completed within the timeframe, and thorough preparation will be made to avoid later delays.

"I believe that the 2036 date for starting the test operation of the new unit is within reach," he said. After the previous Czech governments postponed the decision on the tender for the new construction, the project has been delayed for several years.

Bidders could also provide non-binding options for the construction of a possible third and fourth units of the Temelin nuclear power plant and the sixth unit in Dukovany, Beneš said.

However, this will have no effect on the current tender.

The Czech Republic sees construction as a contribution to the fight against global warming

ČEZ spokesman Ladislav Kříž emphasized that due to low operating costs, nuclear power plants enable long-term stable prices, reliable power supply and safe operation.

In addition, the emission-free electricity makes an important contribution to combating global warming, since no CO2 is released during electricity generation.

He also pointed out that, according to the EU Commission, the investments were recognized as environmentally friendly.

The International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) have repeatedly emphasized the importance of nuclear power in combating climate change.

In the neighboring countries of Austria and Germany, however, this is seen differently.

On the other hand, in many Central and Southeastern European countries there are efforts to modernize the existing nuclear power plant park from Soviet times or – as in Poland – to build new nuclear power plants for the first time.