On 27 April CEZ’s CEO Martin Roman signed a statement of intention with TGK-4 unit of Russian RAO JES Group. It will allow them to cooperate on reforms of Russian energy sector. Accor
ding to Bloomberg, CEZ and TGK-4 plan to sign a memorandum by the end of May setting out the conditions for a JV to build a new gas-fired unit with capacity of as much as 420MW in Shchekinskaya station and to upgrade existing units. Eventually, they will continue cooperation via construction of two coal-fired units with capacity of 250MW.
We see the current Russian electricity market as good expansion opportunity for CEZ given its strong cash position and low level of debt, nevertheless a little bit more risky than its SEE expansion as Russian energy sector doesn’t have a clear vision for the moment. We will wait for further information regarding the investment amount and the time frame of the project.