According to CTK, CEZ’s Director for Development Jiri Feist expressed him during yesterday’s energy conference that Czech Republic needs to decide on possible new nuclear units shortly. CEZ expects new energy sources will be needed in Czech Republic for 24 to 33 TWh in 2020 as consumption may increase up to 100 TWh, given continuing economic growth and lack of energy savings. Renovation of coal sources will be sufficient to meet the demand only until 2015, when current mining limits won’t be sufficient. CEZ expects energy mix in 2020 as 25% from renewable resources, 33% from coal and 42% from nuclear sources.
Our view:
We see the news as neutral at the moment as the need for new energy sources is obvious and undoubtful. However at the moment there is no decision which way Czech Republic will go as there is also possibility for extension of coal plants, given the mining limits are broken. There is also a possibility to build two more units in NPP Temelin. Nuclear production is the cheapest for CEZ, so we see any steps taken in this area as beneficial.