Czech Republic Commits US$19 Billion to Nuclear Expansion Project

The Czech Republic has announced a significant investment of approximately US$19 billion to expand its nuclear energy infrastructure, aiming to double its nuclear output and reduce reliance on fossil fuels. The project centers around the Dukovany Nuclear Plant, where construction of two new reactors is already underway.

Current geological surveys are being conducted at the site, with drilling rigs extracting samples from depths of up to 140 meters. This expansion is expected to solidify the Czech Republic’s position as one of Europe’s most nuclear-dependent nations, as it seeks to increase the share of nuclear energy in its power generation mix.

New Reactors and Future Plans

South Korea’s KHNP has secured the contract to build the new reactors, besting French company EDF. Each reactor will have an output exceeding 1,000 megawatts, complementing the existing four reactors at Dukovany, which were constructed in the 1980s. The new units are projected to become operational in the second half of the 2030s. Additionally, the agreement with KHNP includes an option for two more reactors to be constructed at the Temelín plant, which currently houses two existing 1,000-megawatt reactors.

According to Petr Závodský, chief executive of the Dukovany project, nuclear energy is set to contribute between 50 percent and 60 percent of the Czech Republic’s energy needs by 2050. This shift is crucial for the country as it aims to transition away from fossil fuels and meet stringent emission requirements while addressing the growing demand for electricity driven by advancements in technology and electric vehicle usage.

Context of Nuclear Energy in Europe

The Czech Republic’s nuclear ambitions resonate with the broader European trend, as several nations reconsider their energy strategies amidst increasing energy demands and climate commitments. While nuclear power generates waste, it is a significant source of low-emission energy, unlike the fossil fuels that contribute to greenhouse gas emissions. The European Union has recognized nuclear energy as a vital part of its sustainable economic activities, facilitating financing for member countries heavily reliant on nuclear power, including Slovakia, Hungary, and France.

Recent developments indicate a shift in attitudes towards nuclear energy, with Belgium and Sweden retracting plans to phase out nuclear power. Furthermore, Poland is advancing its nuclear capabilities through a partnership with Westinghouse to construct three nuclear units. The EU currently generates 24 percent of its electricity from nuclear sources.

In the UK, a significant partnership between the government and the United States aims to usher in what officials describe as a “golden age of nuclear.” This includes a £14.2 billion investment to build the Sizewell C nuclear power plant, the first in the UK since 1995.

Financial Commitments and Challenges

The Czech government plans to acquire an 80 percent stake in the new Dukovany reactors, with financing supported by loans that will be repaid over a 30-year period. The state will also ensure a stable income from electricity production for CEZ, the dominant power company in which the government holds a 70 percent stake, for 40 years. Approval from the European Union is anticipated, as the bloc aims to achieve climate neutrality by 2050.

Závodský emphasized the necessity of replacing coal-fired power, which currently contributes 40 percent of the country’s electricity alongside the existing nuclear output. The transition to nuclear is seen as essential for achieving energy security and sustainability.

Despite the overall public support for nuclear energy, the project faces challenges, including financing uncertainties that previously stalled expansion plans. In 2014, a tender for building two reactors at the Temelín plant was canceled after the government declined to provide financial guarantees. Moreover, security concerns following the Russian invasion of Ukraine led to the exclusion of Russian energy giant Rosatom and China’s CNG from the Dukovany tender.

In a strategic move, CEZ has partnered with Westinghouse and France’s Framatome to secure a reliable supply of nuclear fuel, thus eliminating dependency on Russian sources. The contract with KHNP will ensure fuel supplies for a duration of 10 years.

While the momentum for nuclear expansion continues, opposition remains. Groups such as Friends of the Earth argue that the financial resources could be better allocated toward improving the industry rather than expanding nuclear capabilities. Additionally, concerns persist regarding the long-term storage of spent nuclear fuel, particularly given the proximity of the Dukovany and Temelín plants to Austria, a nation that abandoned nuclear energy after the 1986 Chernobyl disaster.

The political climate surrounding nuclear energy remains complex, with Austria’s Parliament already rejecting plans for small modular reactors proposed by the Czech Republic. As the Czech nuclear expansion progresses, the balance between energy needs, environmental considerations, and public sentiment will play a crucial role in shaping its future.