Czech environment ministry: Up to CZK 11 billion from allowance auctions for Dukovany–Brno heat pipeline

Up to CZK 11 billion in revenue from emissions allowance auctions is available to finance construction of the heat pipeline from Dukovany to Brno. The Ministry of the Environment, together with the State Environmental Fund of the Czech Republic, has announced a new grant call, it said in a press release sent to the Czech News Agency (ČTK) today. The pipeline is expected to significantly reduce Brno’s dependence on natural gas and strengthen the region’s energy security.

The project aims to use waste heat from electricity generation at the Dukovany nuclear power plant and feed it into Brno’s district heating network. Teplárny Brno is the main investor. The system is expected to cover up to half of the heat demand in the city and surrounding municipalities, significantly reducing fossil fuel consumption. Brno currently depends on imported gas for more than 80 percent of its needs. Alongside the heat pipeline, the city will also obtain heat from SAKO Brno’s waste-to-energy facility and from biomass.

"The project shows how secondary energy sources, such as unused heat from a nuclear power plant, can be used effectively for the benefit of residents and urban infrastructure. Instead of heat from electricity generation going to waste, it will supply tens of thousands of households in Brno," Prime Minister Petr Fiala (ODS) said.

This approach, he said, significantly increases Czech energy self-sufficiency, reduces dependence on fossil fuel imports and strengthens the Czech Republic’s overall energy security.

The construction project will be able to apply for support in the second round of the I+ programme (Innovative and Comprehensive Projects). The Dukovany–Brno heat pipeline project has already successfully passed the first round of the call, in which the project proposal was assessed. The second round of the I+ grant call opened on 10 July and will run until 30 September 2025.

The call is administered by the State Environmental Fund of the Czech Republic, which will become the main recipient of revenue from emissions allowance auctions from 2026. Construction of the heat pipeline is expected to start in 2027, with heat due to flow to Brno from 2031.

"In the first round of the I+ call, we assessed the proposal to build the Dukovany–Brno heat pipeline from many angles. Naturally, we looked at the expected benefits of the entire project, its technical solution and sustainability, as well as its potential for further development," said Petr Valdman, director of the State Environmental Fund of the Czech Republic.

He added that the project will receive grant support subject to a decision by the minister, provided it meets all the conditions of the call.

The project’s estimated total investment costs are approximately CZK 16.3 billion. Grant support could reach up to CZK 11 billion, with the final amount to be determined only after further assessment of the project.