European Commission opens investigation into Czech state aid for Dukovany nuclear units

Brussels, 22 December (CTK correspondent) - The European Commission (EC) has opened an in-depth investigation to assess whether the public support that the Czech Republic plans to provide for the construction and operation of two new nuclear units at Dukovany complies with EU state aid rules. The Commission announced this today in a press release. The EU executive intends to focus on the appropriateness and proportionality of the state aid, as well as the impact the measure will have on competition in the market.

The construction of new nuclear units in Czechia is expected to be the largest domestic contract ever. At current prices, the cost of building two reactors at Dukovany amounts to CZK 407 billion. Construction will be overseen by Korean company KHNP, which won last year's tender.

The Commission approved support for the construction and operation of one new nuclear reactor at Dukovany in April last year. The Czech government subsequently decided to expand investment in nuclear capacity in order to accelerate the decarbonisation of the electricity generation sector and address the identified shortfall in electricity supplies. In October this year, Czechia therefore notified the Commission of its plan to support the construction and operation of two new nuclear units at Dukovany with electricity generation capacity of up to 976 MWe.

The two new units, which are scheduled to enter operation in 2036 and 2037, should increase the security of electricity supplies for Czechia and neighbouring countries, thereby helping to decarbonise the energy sector and diversify the Czech energy mix. As the EU executive said in its summary, the support concerns Elektrárna Dukovany II (EDU II), a company established to develop and operate the new nuclear units. EDU II is 80% owned by the Czech state and 20% by ČEZ, which is also the sole operator of nuclear power plants in Czechia.

The Commission said that, based on its preliminary assessment, it found the project necessary, but has doubts as to whether the planned measures fully comply with EU state aid rules. For this reason, the EC decided to open an in-depth investigation.