The current Minister for Trade&Industry said that he supports extension of NPP Temelin due to increasing electricity demand in the region and falling capacities. Note that Temelin currently operates 2 blocks of 1,000 MW capacity each and can be extended by another wo blocks of 1,000 MW capacity.
Our view:
The extension of NPP Temelin would be positive given low variable costs at the nuclear power plants. Note that CEZ should prepare its strategic plan for capacity renewal/replacement by autumn this year. We remind that both ODS and CSSD have been also in favour of breaking the current mining limits, which would be positive for CEZ and its renewable program and production capacity mix given low price of lignite coal.