Czech PM Necas discusses Temelin nuclear tender with Russian counterpart.

By bne IntelliNews May 28, 2013

While on a four-day visit to Russia, Czech Prime Minister Petr Necas met with Russian counterpart Dmitry Medvedev and discussed the planned expansion of Czech nuclear power plant Temelin, CTK news agency reported. Medvedev said that if the Czech-Russian consortium, which is one of the bidders in the USD 10bn tender, wins the contract Czech companies will get orders worth some EUR 6bn.

The consortium which comprises Skoda JS, Atomstroyexport and Gidropress is bidding against US Westinghouse to build two more reactors at Temelin doubling the plant’s output to 4,000 MW, in a deal closely followed by nuclear equipment suppliers that were hit by decreasing power prices and weakening interest in atomic energy since Japan's Fukushima disaster in 2011.

The Temelin tender, which aims to boost the share of nuclear power in Czech power mix to 50% by 2030 and is due to become the country’s largest-ever investment project, is fuelling US-Russian rivalry with each country lobbying for its candidate.

While on a visit to Prague in December, former US Secretary of State Hillary Clinton urged the Czechs to diverse their energy sources by choosing the Westinghouse technology. Westinghouse, owned by Toshiba Corp, is bidding with its AP1000 reactor model, while the consortium led by Rosatom’s subsidiary Atomostroyexport is offering the VVER1200 reactors. The current two reactors at Temelin are Soviet-designed VVER1000 but equipped with Westinghouse safety systems, electricity circuits and cabling to comply with western European standards.

The Temelin tender has recently become a focus of political dispute between two of the government parties a year before general elections due in 2014. Last week finance minister Miroslav Kalousek, who is also a member of junior ruling party TOP 09, raised doubt about the effectiveness of the investment project given the falling power prices. Necas, the leader of the senior government party Civic Democrats, said that a final decision on Temelin expansion will be based on long-term strategic goals adding that the industry will need new power capacities as some 1,800 MW of coal-burning plants are to be closed by 2020.

CEZ, which operates Temelin, wants to select the tender winner by September 2013 and have the two reactors running by 2025. It is now in talks with the two bidders to improve their offers. French Areva also filed a bid but CEZ disqualified it in October saying it did not meet legal and commercial conditions.

Related Articles

Latvia issues permits to new gas infrastructure holding

The Latvian Public Utilities Commission (SPRK) announced on January 5 that it has issued licences to Conexus Baltic Grid for the transmission and storage of gas. Conexus Baltic Grid will control ... more

Iran to seek arbitration over termination of gas flow from Turkmenistan

The National Iranian Gas Company (NIGC) intends to take its recent gas dispute with Turkmenistan to international arbitration, Mehr News Agency reported on January 4, citing ... more

CEZ ignores Czech finance minister and re-elects CEO

The supervisory board at Czech power group CEZ ignored pressure from the finance ministry to dump the current management, local media report. Finance Minister Andrej Babis has been accumulating ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss