On Tuesday, April 30, the European Commission, in a significant move, approved, under EU State aid rules, a Czech support measure for the construction and operation of a new nuclear power plant in Dukovany in the Czech Republic.
A new Czech nuclear power plant
The Czech Republic plans to construct a new nuclear power plant in Dukovany with a capacity of up to 1200 MW. The plant will start trial operations in 2036 and commercial operations in 2038. It will be decommissioned in 2096.
Elektrárna Dukovany II, a subsidiary of the ČEZ Group, will operate the plant. The Czech state will provide direct price support through a power purchasing contract with a State-owned special-purpose vehicle to ensure stable revenues for 40 years. The beneficiary will also receive a subsidised State loan and a protection mechanism against unforeseen events or policy changes.
The Commission’s investigation
In June 2022, the European Commission investigated a public support package for a Czech power plant. The Czech Republic introduced changes to the support package to ensure proportionality and prevent market distortion. The changes included a remuneration formula, a duration reduction of direct price support, a claw-back mechanism, and a commitment to selling at least 70% of power output on the open power exchange.
The Commission approved the Czech measure under EU State aid rules.
