HN: Czech Sev.en group to close its coal power plants in January 2027

Sev.en, the energy group of billionaire Pavel Tykač, will close its Počerady, Chvaletice and Kladno coal power plants. They are expected to cease generating electricity in January 2027. The reason is rising emissions allowance prices and the plants’ loss of profitability. Hospodářské noviny (HN) reported today, citing three energy market sources. The company has not yet confirmed this. According to iROZHLAS.cz, the group is still considering the potential closure of the power plants and calculating the viability of their continued operation.

The Sev.en group had previously indicated the possibility of an early end to production at its coal power plants. The reason is the loss of competitiveness of coal-fired electricity and heat generation in the coming years, driven by rising emissions allowance prices.

According to HN, the group has already decided to close the power plants. Employees are expected to be officially informed of the planned move this week. The decision currently concerns the Chvaletice and Počerady power plants, as well as the power plant and heating plant in Kladno. By contrast, coal mining at the last active Vršany mine is expected to continue, according to HN. Operations are also set to be maintained at the newer heating plant in Zlín.

According to iROZHLAS.cz, the group has so far informally alerted Czech grid operator ČEPS that it is calculating the viability of continued operations and considering closing the plants next year. Should it decide to cease operations, the company must inform ČEPS in advance. The coal power plants provide grid balancing services. The grid operator would then assess whether it needs the plants to ensure reliable grid operation. In the past, however, ČEPS indicated on the basis of preliminary scenarios that the domestic grid should be able to withstand a potential shutdown of these plants.

The current outgoing government has previously stated that coal-fired power generation in Czechia will end by 2033. However, other generators have also acknowledged the possibility of earlier closures of coal-fired assets. In its current plans, the ČEZ Group gives 2030 as the date, although an earlier date is also possible should coal power plants rapidly lose competitiveness.

"Our power plants have been modernised, mostly also supplying heat to the surrounding area, and their economics remain favourable even after 2027. Every year, we assess the economics of our coal-fired assets and will make decisions accordingly," ČEZ spokesperson Ladislav Kříž told ČTK today regarding the current operation of the group’s coal power plants.

Sev.en Česká energie, part of Tykač’s Sev.en group, which owns the coal power plants and coal mining operations, reported a net loss of 2.1 billion koruna last year. Its loss had been almost three times higher a year earlier. The group’s revenues fell by 26 percent year on year to EUR 1.06 billion (around 26.8 billion koruna).