CEZ’s press release informed that company increased energy production form renewable sources in 2006 by 19.2% y/y. Water power plants contribute on total sum with 89% (13.7% y/y) and biomass with 11% (94.2% y/y). CEZ plans to invest in next 15 years about CZK 30bn for development of renewable sources and from that sum about CZK 20bn to windmills. Note that CEZ recently announced two wind farm projects with the total cost CZK 5bn.
Our view:
CEZ generates about 95% of its energy production from coal and nuclear power plants. Current level of renewable energy is planed to increase to 8% in 2010, however it heavily depends on natural conditions. We see news as positive, but with no impact for today’s trading.