Boston, MA -- (SBWIRE) -- 04/15/2013 -- The future of the country's power sector is largely dependent on nuclear and renewables, although gas has a key role to play over the medium term, as it will help reduce reliance on coal in electricity generation. Solar power use has soared thanks to an over-generous subsidy scheme, which has now been revised in order to deliver more modest but sustainable growth.

Investment plans suggest that generation will remain more than adequate, comfortably meeting forecasts for steady growth in domestic demand and providing the basis for continued net power exports to neighbouring countries. Longer term, the country aspires to significantly boosting its nuclear power generation.

Key trends and developments in the Czech electricity market:

- Allowing for transmission and distribution losses (estimated at 5.89% in 2012, and expected to decrease to 5.81% by 2022, owing to new investment in the grid), power supply should continue to outweigh demand, allowing for continued net exports to neighbouring states. Czech power generation is estimated to have reached 83.66 terrawatt hours (TWh) in 2012, with an average 0.31% annual increase anticipated to 2022, when we forecast it reaching 86.30TWh.
- In spite of opposition from neighbouring countries, namely Austria and Germany, the Czech nuclear energy push is the cornerstone of a government drive to secure its energy future. The completion of the new units is seen as key to lowering dependence on imported gas and oil, ensuring reliable coverage of the growing electricity consumption in the Czech Republic and building sufficient reserves.
- On October 5 2012, CEZ announced that Areva had failed to qualify to stay in the tender for its multibillion project to expand the nuclear power plant in the Czech town of Temelin. According to CEZ, the bid failed to meet statutory requirements for building the two new units and did not fulfil some other crucial criteria defined in the tender. Areva has appealed against the decision. CEZ expects to select the reactor supplier and sign the construction contract by the end of 2013. The units are scheduled to begin operating in 2023 and 2024.
- CEZ has been divesting some of its generation assets. January 2013 saw new developments in Chvaletice and Pocerady saga, with CEZ reportedly agreeing to sell the 800MW Chvaletice power plant to Czech energy group Energeticky a Prumyslovy Holding (EPH), which will probably get a three-year contract for supplies of brown coal from the Severoceske doly mining company. This equals roughly 6mn tons of coal. However, no progress has so far been made in regard to the 1,000MW-capacity Pocerady plant.
- Albania's power regulator has stripped CEZ of its operating licence on the grounds that the utility did not meet its legal obligation to supply sufficient electricity and invest in the country's power grid. Regulators are now seeking compensation for the damages caused by CEZ.

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