Brussels: The European Commission has announced the launch of a detailed investigation into the Czech Republic's plans to provide public support for the construction and operation of two new nuclear units at the Dukovany site, assessing compliance with European Union State aid rules.
According to Kuwait News Agency, the Commission stated that the two nuclear units are expected to begin operations in 2036 and 2037. These units are anticipated to enhance electricity supply security in the Czech Republic and neighboring regions, aid in decarbonizing the energy sector, and diversify the nation's energy mix.
The Czech authorities propose supporting the construction through three main mechanisms: a low-interest repayable state loan estimated between 23 billion euros and 30 billion euros to cover the full construction costs, and a two-way contract for difference with a proposed duration of 40 years to ensure stable revenues for the plant.
Additionally, the support package includes a mechanism to protect the EDU II project against policy changes or potential adverse impacts, addressing risks from prolonged exposure to policy changes.
The Commission's preliminary assessment found the project necessary and contributing to economic activity development. However, it expressed doubts about full compliance with EU State aid rules, leading to the in-depth investigation.