According to Slovak HN daily, Slovak government plans to build another nuclear power plant in the area of closed Bohunice plant. The decision has not been taken yet, however there are several interested parties, which would like to cooperate on the project. Besides
E.ON and Enel who has already expressed its interest, CEZ is probably also interested, although the spokeswomen couldn’t comment it. Market speculates about 600 MW of installed capacity and cost of EUR 1.2bn. The possible start of construction is expected in 2010.
Our view:
We see possible expansion on the Slovak market as positive given mainly fact that CEZ has excess of capital and limited possibilities to spend it due to several delays in CEE&SEE privatization processes. Although CEZ didn’t explicitly express about its intention to cooperate on this project with Slovak government, we see this as probable. CEZ has been historically active on the Slovak market either in privatization of Slovak energy company (lost to Enel) or heating plant in Kosice, which has been postponed. The Bohunice area is favorable for such a construction as there is an existing infrastructure, which could make the investment cheaper. For the moment we see the news as neutral.