CEZ to focus on renewables and continue with coal phase-out

Prague, May 20 (CTK) - Czech energy group CEZ will focus on the construction of renewable energy sources and continue phasing out coal in the next few years, planning to build renewable sources with a total capacity of 6,000 megawatts (MW) by 2030, CEZ representatives said at today's press conference.

Nuclear power plants will remain in CEZ's portfolio and the group still intends to build a new unit at the Dukovany plant whose installed capacity is 2,040 MW, CEZ CEO Daniel Benes and deputy chairman of the board Pavel Cyrani said at the conference on CEZ's future visions.

CEZ will reduce emissions by 55 percent compared to 2019 by 2030, the company said today.

It plans to use coal for only 25 percent of its electricity production in 2025 and lower it to 12.5 percent in 2030.

CEZ will mainly build new renewable sources at home, with solar farms predominating, Cyrani said.

It plans to build 1,500 MW of renewables by 2025. Currently, the company runs 1,700 MW, 1,000 MW out of which is in Czechia.

CEZ's new strategy is a signal that the future of energy is in renewable sources and the coal era is ending faster than expected only recently; however, the group did not say what coal-fired stations it will shut down and when it will make the decision, representatives of environmental organisations Greenpeace and Hnuti Duha (Friends of the Earth) said.

The group generated 57.1 terawatt hours (TWh) of electricity last year, excluding companies that are up for sale. Nuclear power plants accounted for more than 50 percent, coal-fired stations for some 30 percent, natural gas made up 6.8 percent and renewables 6 percent.

Preventing climate changes is a global priority and the social and political pressure on the energy sector has been growing, Benes said.

"Decarbonisation goals are gradually getting stricter not only in Europe but also in other parts of the world," he said.

The installed capacity of Czechia's solar farms has stagnated or increased mildly since 2012, and now it is about 2,000 MW. Experts believe that the reason is the end of state aid for renewable sources after the so-caller solar boom about ten years ago when the installed capacity rose from 465 MW in 2009 to 1,959 MW in 2010.

Today, Cyrani mentioned further development of electric vehicle charging stations as another factor reducing emissions.

CEZ plans to make major investments in smart grids and products that will help households save energy and lower emissions, he said.

The group's 2030 vision involves also digitalisation and employee care, Cyrani said.

CEZ will support employee retraining and coal regions' transition to new technologies, Cyrani said.

CEZ lowered its coal consumption significantly during the 1990s when it shut down almost 2,000 MW in 19 coal-fired units, the group said.

It has been purposely reducing coal use in electricity production since 2016, and has closed two coal-fired units with a total capacity of roughly 1,000 MW in the past more than a year.

Benes said today that the next potential nuclear unit after Dukovany's would be at the Temelin power plant, while no official decision has been made. He also mentioned the option of small modular reactors.

CEZ is the largest Czech energy company which is roughly 70 percent owned by the state via the Finance Ministry.

The current government representatives say that the Czech energy mix should be based on nuclear and renewable energy in the long term.

Last December, the Coal Commission recommended the year 2038 as coal exit for Czechia. Some ministers prefer 2033.

Many energy companies are planning to switch to low-emission sources in the coming years.

EP Infrastructure (EPIF), a key unit of Daniel Kretinsky's Energeticky a prumyslovy holding (EPH), plans to stop using coal by 2030 and be carbon neutral by 2040, the company said last week.

The EU keeps increasing the 2030 decarbonisation effort and all coal energy players are taking the pressure into account, which is why company Sev.en Innovations is seeking and testing modern green technologies and preparing investments in renewable sources, battery storages and other innovations, Pavel Farkac, an analyst for the Sev.en Energy group of financier Pavel Tykac, told CTK today.

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