Until now there was talk of a new nuclear reactor – now the Czech government has announced that there will be four. There is resistance to this – but not because of the technology, but because of the costs.
It was news that surprised everyone: the Czech head of government was actually supposed to announce last week which company would build a new nuclear reactor in the Czech Republic. But then Petr Fiala explained that there should be not one, but four reactors. “Building up to four blocks in one package would be significantly more economically advantageous. Compared to building just one block, it would be up to 25 percent cheaper.”
With this reason, the conservative-liberal government stopped the tender for the largest single investment in the history of the independent Czech Republic and called for new offers. Industry Minister Jozef Sikela announced another surprise: “In this next phase we will only address two bidders: The offer from the American-Canadian consortium Westinghouse did not meet the necessary requirements. Above all, his offer is not binding and cannot be compared.”
Westinghouse with the necessary expertise
Westinghouse is building the first nuclear power plant in Poland and was the favorite for the block in Dukovany in the south of the Czech Republic. The company is the only bidder to have already built a reactor with the required output. The US ambassador in Prague was disappointed. He had made supporting Westinghouse his priority.
Now only EDF from France and the outsider KHNP from South Korea are left in the race. The energy company CEZ is supposed to evaluate your new offers by May.
The Czech Republic expects higher electricity consumption
In the Czech Republic, polls show support for nuclear power at almost 80 percent – the highest figure in the entire EU. The opposition also supports the expansion of nuclear power. “There is no other way,” said the deputy leader of the populist ANO party, Karel Havlicek. “Anyone who thought that nuclear power could be replaced by renewable energies was a naive dreamer. I am very happy that our government pushed forward the expansion of nuclear power plants back then. And it was right that the current government launched the tender.”
The Czech Republic expects the country’s electricity consumption to increase significantly – by up to two thirds by 2050. New nuclear reactors should provide enough affordable energy and also help achieve climate goals.
Be careful Cost explosion
There are currently six blocks running at two locations: in Dukovany, near Austria, and in Temelin, near Bavaria. And the new reactors will also be built at these two locations. Austria and Bavaria were caught off guard by the plans.
But criticism can also be heard in the Czech Republic – although not because of nuclear power, but because of the costs. “Financing and interest rates are the main issues,” says economic analyst Radim Dohnal. According to studies, up to 86 percent of the total costs of a new nuclear power plant are financed. “We see this in the delays all over the world, especially in the USA. The costs there rise immensely every year,” continued Dohnal.
A few years ago, the Czech government budgeted around 6.5 billion euros for the construction of a reactor. However, experts assume up to 20 billion euros.
“This is very surprising”
Given the size of the Czech economy and the level of national debt, the goal of building four new blocks at once is absolute science fiction, says energy analyst Michal Snobr. “This is very surprising: previously the government wanted to build two new blocks in Dukovany, then that was reduced to one due to problems with the cooling there. And now we are jumping to four in an ongoing tender without any preparation or discussion!”
The government has caused chaos, said the CEZ shareholder. The entire process actually failed. Other observers also believe that the expansion of nuclear energy in the Czech Republic is now at risk. Not so Prime Minister Fiala: The schedule is set, the new reactor should go online in 2036, and up to three more units in 2050.
Marianne Allweiss, ARD Prague, tagesschau, February 6, 2024 9:00 a.m