Die Welt: ČEZ is Germany’s ideal partner for acquiring Vattenfall assets

According to the German daily Die Welt, Czech energy company ČEZ is the ideal partner for acquiring Vattenfall’s assets. The newspaper bases this primarily on the fact that the state holds a majority stake in ČEZ, making ČEZ a stable partner for the key coal sector, which employs large numbers of people. 

An energy company with a majority state ownership stake would be an advantage, as it would make for a more stable partner for Germany. The newspaper notes that, in the event of problems, it would be easier to resolve such situations politically between “Prague and Berlin” than in the case of private companies.

The area in which Vattenfall’s assets in question are located is structurally weak. Any financial difficulties faced by the company acquiring Vattenfall’s assets could threaten employment in the region. However, according to Die Welt, ČEZ does not envisage layoffs and jobs are not at risk.

Long-standing operating experience an advantage

ČEZ’s advantage lies in its long-term experience of operating similar assets in Czechia. For example, the Boxberg power plant is very similar to the new unit at the Ledvice power plant. Moreover, significant hydropower plants are also included in the sale, and ČEZ likewise has experience operating them.

Discussions are still ongoing over the price at which Vattenfall’s assets will be sold. Due to the necessary land reclamation after operations end and political instability in the German energy sector, there is speculation that the price could even be negative.

Other buyers are also in the running

In addition to ČEZ, private companies EPH and Czech Coal are also interested in the coal assets together with the hydropower plants. There has also been talk of interest from German company Steag.

The question remains what sources Germany will use in its transition to clean energy. Given that it plans to shut down approximately 9 GW of installed nuclear capacity in 2021 and 2022, it must replace this capacity with something.

Germany’s plan is to replace it with renewable sources, primarily wind power plants, which are mainly located in the northern part of the country. However, sufficient transmission capacity to transfer the power to the south is still lacking.