Czech Republic Plans Major Nuclear Expansion

New reactors aim to double output and phase out coal

The Czech Republic is moving forward with a $19 billion nuclear energy expansion designed to reduce its dependence on fossil fuels and meet growing electricity demand. At the Dukovany power plant, preparations are underway for two new reactors, with geological surveys probing 140 meters underground to assess site suitability. South Korea’s KHNP won the construction tender over France’s EDF, with each reactor expected to produce over 1,000 megawatts. Once operational in the 2030s, they will join Dukovany’s four existing 512-MW units built in the 1980s.

Strategic Goals and Regional Context

The KHNP agreement includes an option for two additional reactors at the Temelín site, which currently operates two 1,000-MW units. Plans also include the deployment of small modular reactors to further diversify the energy mix. By 2050, nuclear power is projected to supply between 50% and 60% of the country’s electricity, according to Dukovany project chief Petr Závodský. The expansion supports goals to replace coal, stabilize energy prices, and meet low-emission targets amid rising demand from sectors like data centers and electric vehicles.

Across Europe, nuclear energy is experiencing renewed interest as countries seek low-carbon alternatives. The EU’s inclusion of nuclear in its sustainable finance taxonomy has enabled new funding opportunities. Nations such as Belgium and Sweden have reversed phase-out plans, while Poland signed a deal with Westinghouse to build three reactors. In 2024, nuclear accounted for 24% of the EU’s electricity generation.

Financing and Partnerships

The Czech government will hold an 80% stake in the new Dukovany units and provide a loan to CEZ, the state-majority utility, which will repay it over 30 years. A guaranteed income from electricity production will be secured for 40 years, pending EU approval. CEZ has also partnered with Rolls-Royce SMR to develop small modular reactors and signed fuel supply agreements with Westinghouse and Framatome. These steps aim to eliminate reliance on Russian energy sources and ensure long-term fuel security.

Security concerns led to the exclusion of Russia’s Rosatom and China’s CNG from the Dukovany tender following the invasion of Ukraine. Financing challenges previously delayed expansion efforts, including a canceled 2014 Temelín tender due to lack of government guarantees. The current plan reflects a more stable and strategic approach to nuclear development. Officials argue that replacing coal with nuclear is essential for meeting future energy needs.

Public Sentiment and Regional Tensions

While nuclear energy enjoys broad domestic support, critics raise concerns about cost and waste management. Environmental groups like Friends of the Earth argue that funds could be better spent on industry improvements. The Czech Republic still lacks permanent storage for spent nuclear fuel, which remains a point of contention. Cross-border tensions persist, particularly with Austria, which remains strongly opposed to nuclear power.

Temelín and Dukovany are located near the Austrian border, where past disputes have led to political friction. In 2000, protests over Temelín blocked border crossings for weeks. Austria’s parliament recently rejected the Czech plan for small modular reactors, reinforcing its anti-nuclear stance. Despite opposition, Czech officials maintain that nuclear expansion is necessary for energy security and climate goals.