CEZ will raise new wind power plant close to NPP Dukovany for CZK 2.5bn (some EUR 90m), CTK informed. The construction of 40 pillars is expected to start towards the end of 2008 or beginning of 2009. Installed capacity of each pillar is 2 MW, total of 80 MW. CEZ expects costs for one pillar are in the range of CZK 60-65m.
Our view:
Share of renewable resources including water on total CEZ’s production is some 4%. This step is in-line with EU requirements to substantially increase production from this source of energy to the levels of 8% by 2010. This segement is only marginal for CEZ and it is not the most reliable sourc as it heavily depends on weather. Future of CEZ’s production lies in coal and nuclear energy sources which creates more than 95% of CEZ production. We see the news as neutral.