Nuclear power provides 35% of Czech electricity from Temelín and Dukovany, with a $7 billion expansion planned.
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Nuclear energy forms the strategic cornerstone of the Czech Republic's national energy policy, generating approximately 35% to 40% of the country's total electricity. The national nuclear fleet consists of two major operational facilities operated by ČEZ Group, the state-controlled utility in which the Czech Ministry of Finance holds a 70% majority stake. The Dukovany Nuclear Power Plant, located in the Vysočina region, operates four pressurized water VVER-440 reactor units with a combined capacity of 2,040 megawatts (MW), commissioned between 1985 and 1987. The Temelín Nuclear Power Plant in South Bohemia houses two larger VVER-1000 units providing 2,160 MW of generation capacity. Together, these two plants deliver reliable, zero-carbon baseload electricity that shields the heavily industrialized Czech economy from international fossil fuel market volatility.
The strategic imperative for nuclear power intensified following the 2022 European energy crisis, which exposed the vulnerabilities of reliance on imported natural gas. In response, the Czech government accelerated efforts to achieve full energy sovereignty. A key element of this geopolitical realignment involved ending long-standing dependencies on Russian nuclear fuel provider TVEL (a subsidiary of Rosatom). ČEZ secured long-term nuclear fuel supply contracts with Westinghouse Electric Company (United States) and Framatome (France), ensuring that both Dukovany and Temelín operate with alternative Western-supplied fuel assemblies.
To replace aging units at Dukovany scheduled for decommissioning in the late 2030s and to meet rising electricity demand, the Czech government launched a multi-billion-dollar nuclear expansion program. The centerpiece of this initiative is the construction of a new 1,200 MW reactor unit at Dukovany (Dukovany Unit 5). Following an extensive procurement process managed by ČEZ subsidiary Elektrárna Dukovany II, three major global nuclear vendors submitted competitive tenders: Westinghouse proposing its AP1000 design, France's EDF proposing the EPR1200, and South Korea's Korea Hydro & Nuclear Power (KHNP) offering the APR1000 reactor.
In July 2024, the Czech government officially selected KHNP as the preferred bidder for the construction of up to four new nuclear reactors—two units at Dukovany and two additional units at Temelín. The initial contract for the first Dukovany reactor is valued at approximately $8.6 billion (200 billion CZK), with the total program value reaching over $18 billion if all four units are constructed. The selection of KHNP was driven by competitive pricing, binding commitments on schedule delivery, and extensive local industrial localization agreements that involve Czech engineering and manufacturing firms in up to 60% of the project work.
Financing a nuclear mega-infrastructure project of this magnitude poses significant fiscal and regulatory challenges. To facilitate investment without destabilizing ČEZ's market balance sheet, the Czech Parliament enacted the "Lex Dukovany" statutory framework. This law establishes state-backed financial support mechanisms, including a long-term power purchase contract (Contract for Difference) guaranteeing electricity price stability, alongside direct state-provided low-interest construction loans covering up to 90% of capital costs. This financing structure received formal state-aid clearance from the European Commission.
From an environmental and industrial standpoint, nuclear expansion provides the 3,200 MW of zero-carbon baseload generation required to replace coal capacity and fulfill the Czech Republic's target of reducing carbon emissions by 55% by 2030 under the EU Green Deal. Coal-fired power stations—such as those at Prunéřov, Tušimice, and Ledvice—historically generated over 40% of Czech power but are scheduled for complete phase-out by 2033–2038 due to rising EU Emissions Trading System (ETS) carbon allowance prices. Expanding nuclear baseload capacity guarantees energy security for the nation's energy-intensive industrial cluster, lowers national carbon emissions, and ensures the Czech Republic remains a net exporter of clean power to Central European neighbors.