Czech state to take over majority stake in EDU II from ČEZ; KHNP contract to be signed on 7 May

The government today approved the financing method for the construction of two new nuclear units at Dukovany, in the form of a state loan to Elektrárny Dukovany II (EDU II), the company in charge of the project. The state will newly hold an 80% stake in the company, for which it will pay ČEZ 3.6 billion crowns. EDU II will sign the final agreement with Korea’s KHNP in a week, on 7 May. Prime Minister Petr Fiala (ODS) said this at a press conference following today’s cabinet meeting.

The construction of new nuclear units in Czechia is expected to be the country’s largest-ever contract. At current prices, the cost of the currently preferred plan to build two reactors at Dukovany is 400 billion crowns. The first Dukovany unit is expected to be completed in 2036.

According to Finance Minister Zbyněk Stanjura (ODS), the construction of the two nuclear units will be financed through a state loan to EDU II, which should cover all project costs from the signing of the final contract until the reactors start operating. The loan amount is classified, the minister said, but corresponds to KHNP’s bid price. According to the government, this was around 200 billion crowns per unit at 2024 prices. EDU II will then repay the loan in instalments over 30 years after the project is completed. The loan still needs to be approved by the European Commission.

„The state’s majority stake will ensure control over the entire project and will probably also simplify the European Commission’s approval process for state aid, known as notification,“ Stanjura noted.

Once the acquisition of EDU II is complete, ČEZ will retain a 20% stake. According to the government, this will ensure the company’s expert involvement in the project. „This step will also allow the ČEZ Group to pursue other investment projects focused on long-term competitiveness, sustainability and security. Thanks to its unique experience in construction and in the subsequent safe operation of two nuclear power plants for almost 40 years, ČEZ is ready to provide its capacity and know-how for the preparation and construction of new power sources,“ said ČEZ Chief Executive Daniel Beneš.

The government decided to build two new nuclear reactors last July. It chose the offer from Korea’s KHNP over EDF’s bid. It had already excluded another bidder – Westinghouse – from the competition.