ENERGO: Czech energy company CEZ CEO warns that EC's proposal on nuclear energy will limit Czech energy sector transformation

Daniel Benes, CEO of semi-state utility company CEZ, in his LinkedIn post said the European Commission's proposal to include nuclear power and natural gas among green sources under certain conditions would bring major complications in terms of the transformation of the Czech energy sector.

The new rules would limit Czechia to just one new nuclear power unit at CEZ's Dukovany plant, and no new ones as it has planned. “In terms of nuclear energy, the adoption of the proposal would mean that the new unit at Dukovany could also be the last [one] – either large or SMR (small modular) – to be built in the Czech Republic in accordance with the taxonomy. Investing in 60-year-old operation of the existing units at Dukovany or Temelin after 2040 is contrary to the proposed taxonomy,” Benes said. 

According to him, Czechia should send comments and proposals for amendments to make the act acceptable. "From the position of the first vice-president of the Confederation of Industry of the Czech Republic and the CEO of CEZ Group, I believe that the Czech Republic should send comments and proposals for amendments so that the Act becomes acceptable and its conditions are feasible," he said.

He also said the country should aim at a low-emission economy because the price of emission allowances will never be low again. He sees the future in two pillars: nuclear energy and renewable energy; these should provide affordable electricity.

As reported by EU Observer on January 5, following initial enthusiasm of Czech politicians, Czechia decided to try to ally with other European countries to change the plan conditions and modify the rules. 

"Our main task now is to reach out to like-minded EU member states and try to negotiate even better conditions that will more reflect our interests," Industry Minister Jozef Sikela said on his Twitter. EU members have until January 12 to submit their comments.