nuclear-news

EU launches inquiry into Czech funding plan for new nuclear

WNN, Tuesday, 23 December 2025

The European Commission “has doubts” that the proposed Czech funding plan for its proposed new nuclear units “is fully in line with EU State aid rules”.

In April last year the European Commission (EC), which is the executive arm of the European Union (EU), approved the funding plan for a single new nuclear reactor at the Dukovany nuclear power plant site in the Czech Republic.

In July last year Korea Hydro & Nuclear Power (KHNP) was selected for the project, and in October this year the Czech Republic officially notified the EC it had expanded its plans to two new nuclear units, each with a capacity of 976 MWe

What is the funding plan?

The EC says: “Czechia plans to support the construction of the new nuclear units through three measures: a low-interest repayable State loan of an initial amount currently estimated between EUR23 billion (USD27.1 billion) and EUR30 billion, which will cover the full construction costs; a two-way contract for difference with a proposed duration of 40 years to ensure stable revenues for the nuclear power plant; and a mechanism to protect EDU II in case of policy changes and adverse impacts, to address the risk arising from the longevity of exposure to policy changes.”

EDU II is Elektrárna Dukovany II, a company set up to develop and operate the new nuclear units, which is owned by the Czech state (80%) and the Czech Republic’s nuclear power plant operator ČEZ (20%).

The contract for difference effectively means that if electricity prices are below the agreed level, the nuclear project will receive a subsidy to make it up to the agreed price, and if electricity prices are above the agreed price, the nuclear project would pay money back to the government…………………………………………………..

 The EC has doubts about whether it is fully in line with EU State aid rules and wants to ensure that “no more aid than necessary is ultimately granted. In particular, the Commission has doubts on whether the proposed package achieves an appropriate balance between reducing risks to enable the investment and maintaining incentives for efficient behaviour, while avoiding excessive risk transfer to the State”.

It also wants to look at the impact of the State aid measures on competition in the market “in particular, the Commission has concerns that several essential design elements of the CfD remain insufficiently specified, preventing the Commission from fully assessing whether the mechanism maintains efficient operational and maintenance incentives”.

…………………………………….. Asked about the status of any investigation into foreign state aid, a European Commission spokesperson told World Nuclear News on Tuesday: “The Commission’s assessment of a complaint by EDF under the Foreign Subsidies Regulation regarding the award of a tender to KNHP is ongoing. We do not comment on ongoing investigations.” https://www.world-nuclear-news.org/articles/eu-launches-inquiry-into-czech-new-nuclear-funding-plan

December 28, 2025 - Posted by Christina Macpherson | business and costs, EUROPE, politics