CEZ to decide coal plant closures annually, eyes 2028 phase-out

Prague, June 23 (CTK) - The CEZ energy group will decide on shutting down its coal-fired power plants from year to year, and the decisions will depend on the development of prices on the exchange and emission allowances, board deputy chairman Pavel Cyrani told shareholders at today's CEZ general meeting.

Based on current developments, it can be estimated that coal-fired power generation will cease around 2028, but this estimate could change at any time, Cyrani said.

CEZ does not plan any closure of coal-fired units this year. The company already announced in the past that economically, the production from coal-fired power plants is gradually deteriorating. In the spring, CEZ CFO Martin Novak admitted that the decline in operating profit in the case of coal-fired production is already evident in the quarter-on-quarter comparison.

However, Cyrani said the company has not yet decided on the exact timetable for the coal production phase-out, which cannot be expected in the near future. "It will be (decided from) year to year," he told the AGM today.

The situation and the economic viability of production from different sources is constantly evolving on the exchange, so an exact date cannot be set now, he added.

In the past, the government of Prime Minister Petr Fiala said coal power industry in the Czech Republic would end in 2033 at the earliest. However, domestic energy companies have admitted that a shift away from coal will be necessary much sooner due to rising costs. CEZ has long presented the end of coal-fired generation by 2030, while other producers have announced possible closure of coal-fired units in the coming years.

In the future, the state expects to build the domestic energy mix on nuclear and renewable sources. However, these will have to be built first. In the meantime, gas should be the interim main fuel. CEZ also wants to convert most of its coal-fired power plants to gas.

CEZ is gradually preparing for the phase-out of coal mining. A recent meeting between representatives of CEZ and the Environment Ministry revealed that mining at the Bilina lignite quarry in northern Bohemia will end earlier, in 2033 instead of the originally planned 2035. According to CEZ CEO Daniel Benes, this should also be the end of coal power in the Czech Republic. He assumes that this will be the last coal quarry or mine to close.

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