Analyst: Temelín nuclear expansion spells ‘bye bye’ for dividends

Written by on January 2, 2014 in Europe - No comments

The expansion of the Temelín nuclear power plant remains doubtful given current energy prices, analysts have said after the CEO of ČEZ indicated a contract for two new reactors could be signed next year.

Daniel Beneš told the Czech business weekly Ekonom that ČEZ and the preferred bidder could finalize a deal “some time in the second quarter of 2015,” although only if the state offers a guaranteed price for energy produced by the facility.

”I cannot imagine signing a fully valid contract on the completion of Temelín before having negotiated a contract for difference or another business scheme,” Beneš said in comments reported by the Czech News Agency.

Wholesale energy prices are currently well below the projected cost of energy produced at an expanded Temelín, so ČEZ has said the authorities would need to offer guarantees that they would make up any shortfall. If prices rose above the guaranteed level, ČEZ would be required to pay the difference to the authorities.

In his interview with Ekonom, Beneš also said that if construction took place, it would not begin in 2016 or 2017, as had originally been planned.

There are currently two bidders to build the proposed two new reactors, Westinghouse from the United States and a consortium that includes Russia’s Atomstroyexport.

To read the full story, visit The Prague Post.

(Temelin nuclear power plant in the Czech Republic. Photo: Japo/Wikimedia Commons)

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