The European Commission has launched an in-depth investigation into the Czech Republic’s proposed public support for the construction and operation of two additional nuclear units at the Dukovany site.
The inquiry aims to determine whether these measures align with EU State aid regulations.
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Czech authorities notified the commission of plans to provide aid for two new nuclear reactors in October 2025, following a previous approval of support for a single unit at the same location in April 2024.
The two new units are expected to each have a generation capacity of up to 976MW and are projected to start operating in 2036 and 2037.
The company responsible for the project, Elektrárna Dukovany II (EDU II), is owned mainly by the Czech state, which holds an 80% stake, with ČEZ owning the remaining 20%. ČEZ currently operates all nuclear power plants in Czechia.
To support construction, Czechia has proposed three main measures: a repayable state loan estimated between €23bn and €30bn covering full construction costs, a 40 year two-way contract for difference intended to secure stable revenues for the plant, and a protective mechanism for EDU II against possible policy changes over time.
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By GlobalDataAccording to the commission’s preliminary review, these aids could be justified as they facilitate economic activity and address supply security and decarbonisation objectives.
However, several concerns prompted the commission’s decision to open a formal probe.
These include doubts about whether the package is appropriate and proportionate, particularly regarding risk distribution between the state and EDU II, as well as whether support granted exceeds what is required.
Additionally, questions have been raised about how detailed elements of the contract for difference will affect competition in electricity markets.
The commission also cited unfinished aspects of market safeguards against reinforcing ČEZ’s position or passing on advantages to select market participants or consumers.
The investigation grants both Czechia and other interested parties an opportunity to submit comments.
The opening of proceedings does not indicate any conclusion about compatibility with EU rules at this stage.
