European Commission Launches Investigation into Financing Plan for New Units at Czech Dukovany Nuclear Power Plant
2026-01-12 16:05
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The European Commission has announced the initiation of an in-depth investigation into the state aid scheme for the expansion of the Czech Dukovany Nuclear Power Plant. The Czech Republic plans to construct two new nuclear units at the site, to be built by Korea Hydro & Nuclear Power (KHNP), with the aim of promoting the low-carbon transition of its energy mix.

Preliminary assessments indicate that the proposed financing measures for the project may not fully comply with EU state aid rules. The main measures include providing low-interest state loans, signing long-term Contracts for Difference (CfDs), and offering operational risk protection. The European Commission stated: "While the new units are important for energy decarbonization, we are concerned that the aid may exceed what is necessary, and some contract details are insufficient." The investigation is expected to last until 2027.

The Czech government stated that this review is a standard procedure, and the project will be suspended during the investigation. Currently, nuclear energy accounts for approximately one-third of the Czech Republic's electricity supply. Other complaints regarding the project's tender are also under parallel review by the European Commission.

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