Czech EPH bets on coal's future as backup for renewables

EPH is betting on coal as a backup source for the rapidly expanding renewable energy sector. The company aims to secure contracts similar to the one in the UK for the Eggborough power plant. Through its acquisition of Vattenfall's assets, EPH is targeting profits from Germany's coal reserve.

The strategy of investors Daniel Křetínský and Patrik Tkáč is to profit from the rapid expansion of renewable energy in Europe by securing backup power needed when the sun is not shining and the wind is not blowing.

„While renewable energy sources will undoubtedly continue to grow, without structural changes to distribution grids and efficient electricity storage, conventional generation will remain indispensable for some time,“ EPH chairman Daniel Křetínský told Bloomberg.

EPH acquired the UK coal-fired power plant Eggborough in 2014 and fossil fuel assets in Italy last year. Details of the takeover of Vattenfall's German coal-fired power plants are likely to be finalised this month.