Kladno without coal-fired heat: What does the plant closure mean for residents?

Kladno heating plant, part of the Sev.en Česká energie group, has announced that the end of electricity generation will also bring an end to heat production, which the plant supplied to customers in Kladno through TEPO. The coal-fired operation will cease no later than March 2027, with a major impact on the city’s heat supply.

According to the plant’s management, the reason is clear: operation is not economically sustainable due to rising emissions allowance prices, persistently low electricity prices and unfavourable supply contract terms.

“The long-term contract with the municipal company TEPO is unsustainable for us under the current conditions,” said company CEO Michal Hons regarding the existing heat supply contract.

The situation in Kladno is not an isolated case. The economics of coal-fired facilities are deteriorating across the Czech Republic. According to experts, if the allowance price rises to around EUR 120 per tonne, all major coal-fired plants will find themselves in a situation similar to that of the Kladno heating plant. Many heating plants are already adjusting their prices, but only some have scope to pass the costs on in heat prices.