Czechs Plan Nuclear Push with a $25 Billion Project

The Czech Republic is pushing ahead with a large-scale expansion of its nuclear-power industry despite increasing misgivings about atomic energy among its neighbors in Europe.
DJ
Τετ, 26 Οκτωβρίου 2011 - 18:56

The Czech Republic is pushing ahead with a large-scale expansion of its nuclear-power industry despite increasing misgivings about atomic energy among its neighbors in Europe.

On Monday, the country's government-controlled CEZ AS will issue technical specifications for a $25 billion project to build up to five new nuclear reactors, with the first two scheduled to go online by 2025.

CEZ has invited three bidders to participate in this final round: French state-controlled Areva SA; Westinghouse Electric Co., a U.S. unit of Japan's Toshiba; and Russia's state-owned nuclear company Rosatom.

In choosing a winner, the Czechs must decide whether to stick with a European partner, increase dependence on energy-giant Russia or look to the U.S.-Japanese team for diversity. Some Czech politicians have said the country is already far too dependent on Russia for energy supplies. Roughly three-quarters of its oil and gas, as well as all its nuclear fuel, come from Russia. And last week, Prime Minister Petr Necas said his government wants to deepen trans-Atlantic ties.

Vaclav Bartuska, the Czech government's special energy envoy, said the CzechRepublic wants to increase the proportion of its electric power generated by nuclear reactors to 50% from the current 30%.

"There is antinuclear sentiment in some countries," Mr. Bartuska added. But until alternate energy sources make economic sense, "we see nuclear as the solution."

CEZ, which is operating six reactors now, has long been one of Europe's largest power exporters, sending electricity to neighboring Germany and elsewhere.

The Czech strategy runs counter to the approach of Berlin, which, after the partial meltdown this year of a Japanese nuclear plant following an earthquake and tsunami, has pulled the plug on atomic power.

Germany has already shut down seven older reactors and plans to phase out the rest of its nuclear generation by 2022. Switzerland also has shelved plans for new reactors, and Italy has put tentative plans for a pilot plant on hold.

German and Austrian politicians have called for the Czechs to drop their nuclear-expansion plans. In Austria, which imports Czech electricity, parliament is considering a bill to prohibit the purchase of nuclear power.

Such a ban would be almost impossible to implement in practice, however, because electricity from all sources -- including nuclear, coal-powered and solar generators -- is indistinguishable in the power grid.

Mr. Bartuska said that the accident in Japan highlights the need for high safety standards. But he said that in order to cut greenhouse-gas emissions, nuclear power is critical.

"We have burned our fingers with massive funding and subsidies for photovoltaic power," he added. "At the present stage we do not see renewables as a way forward if they have to be heavily subsidized."

Germany has said it will try to use renewable fuels such as wind, hydro, solar and biomass to replace the generation capacity it is losing because of its antinuclear stance.

Alan Svoboda, the head of sales at CEZ, called this "the German experiment" and predicted it would drive up electricity costs for most Europeans.

"We believe the prospect of having to address global warming and the search for energy security will eventually persuade most governments that nuclear energy is the least bad solution," said Derek Weaving, an analyst at Renaissance Capital.