EU to investigate Czech support for two new nuclear units

BRUSSELS, Dec 22 (KUNA) -- The European Commission announced on Monday that it has opened an in-depth investigation to assess whether the public support that the Czech Republic plans to grant for the construction and operation of two new nuclear units at the Dukovany site complies with European Union State aid rules.
In a statement, the Commission explained that the two new units are scheduled to start operating in 2036 and 2037, and are expected to enhance the security of electricity supply in the Czech Republic and neighbouring countries, support efforts to decarbonise the energy sector, and diversify the Czech energy mix.
It noted that the Czech authorities plan to support the construction of the two new nuclear units through three main mechanisms, including a low interest repayable state loan, with an initial amount currently estimated at between 23 billion euros and 30 billion euros to cover the full construction costs, as well as a two way contract for difference with a proposed duration of 40 years to ensure stable revenues for the nuclear power plant.
The Commission added that the support package also includes a mechanism to protect the EDU II project in the event of policy changes or potential adverse impacts, in order to address risks arising from prolonged exposure to policy changes.
The Commission indicated that its preliminary assessment concluded that the project is necessary and contributes to the development of an economic activity. However, it expressed doubts as to whether the measures fully comply with EU State aid rules, prompting it to open an in-depth investigation into the matter. (end) arn.rk