Commission opens in-depth investigation into state aid to two new nuclear units in Czechia
The Commission has launched an in-depth investigation into Czechia’s plans to support the construction and operation of two new nuclear units at the Dukovany site, to assess whether the proposed public support complies with EU State aid rules. The project, notified in October 2025, would expand on a previously approved plan for a single reactor and aims to accelerate the decarbonisation of the electricity sector while strengthening security of supply in Czechia and neighbouring countries. The two units, each with a capacity of up to 976 MWe and scheduled to begin operation in 2036 and 2037, would be developed and operated by Elektrárna Dukovany II (EDU II), a company owned by the Czech State (80%) and energy group ČEZ (20%).
Czechia plans to support the investment through a low-interest State loan covering construction costs, a 40-year two-way contract for difference (Cfd) to stabilise revenues, and a mechanism to protect the operator against policy changes.
While the Commission’s preliminary assessment recognises the project’s contribution to climate and energy objectives, it has raised concerns over the design, proportionality and competitive impact of the proposed aid package. The Commission will now examine whether this combination of measures risks granting more aid than necessary, weakens incentives for efficient operation, or unduly distorts competition, including by reinforcing ČEZ’s market position. The opening of the investigation allows Czechia and third parties to submit comments and does not prejudge the final outcome.
For more information, see the Commission’s PR.