Nuclear energy is a key pillar of the Czech energy sector, and its importance is set to grow alongside decarbonisation efforts and the need to strengthen energy security. However, the Czech nuclear industry faces a number of challenges – ranging from potential European Union intervention in the Dukovany expansion to the continued reliance on Russian nuclear fuel. At the same time, Czechia aims to become a pioneer in the development of small modular reactors (SMRs), though this leadership may come at a cost.
Luděk Májek, Update EU
Nuclear power plays a significant role in the Czech energy mix. With an installed capacity of 4.29 GW in 2025, it accounted for 21.5% of total installed electricity generation capacity. Its share in actual electricity production was even higher, reaching 42.3% in the same year.
Public support for nuclear energy is also strong. According to a survey by the Public Opinion Research Centre, nearly three-quarters of respondents (73%) support the use of nuclear power for electricity generation. Most respondents do not express major concerns about its use—40% report only minor concerns, while 38% report none at all.
The Czech Republic currently operates two nuclear power plants – Temelín and Dukovany – both run by the ČEZ Group, in which the state holds nearly a 70% majority stake.
The importance of nuclear energy, alongside renewable sources, is expected to grow in the coming years, particularly in light of EU climate targets and the need to enhance energy security. This is reflected in the Czech Republic’s decision to move forward with its largest nuclear project since the launch of the Temelín plant in 2000: the construction of two new reactor units at Dukovany.
The ČEZ Group has also expressed interest in becoming a leader in the deployment of SMRs. Another prerequisite for further development is the construction of a deep geological repository for high-level radioactive waste, expected to begin around 2050 and become operational by 2065, with site selection still ongoing.
However, the specific nature of nuclear energy brings a number of additional challenges.
EU Legislation Could Affect the Dukovany Expansion
According to Martin Jirušek from the Faculty of Social Studies at Masaryk University, nuclear energy enhances energy security because it does not depend on continuous supply chains and infrastructure, as is the case with oil and gas. However, he warns that it does not guarantee full energy independence.
“Other risks emerge. These are massive projects, creating long-term ties – lasting decades – with technology providers. Such relationships involve huge flows of finances, personnel, and materials. Within this space, numerous risks can arise,” he said.
He identifies financing as the main challenge in nuclear development. Due to the high costs and the nature of market economies, such projects require state funding, which can carry political consequences.
In extreme cases, financing or technology sourced from high-risk countries may pose security and geopolitical concerns. Jirušek pointed to Hungary’s Paks II project, implemented by Rosatom and financed by a Russian state loan.
However, a similar scenario does not apply to the Czech Dukovany project. While Russia’s Rosatom had been considered during early planning, it was excluded from the tender in April.
The contract was ultimately awarded to South Korea’s KHNP, with Czech companies expected to participate in 60% of the project. Construction is scheduled to begin in 2029, with the first new unit expected to come online in 2036.
Financing will take the form of a state loan to Elektrárna Dukovany II (EDU II), the project’s implementing entity. The loan is expected to match KHNP’s bid price, which the government estimated at around CZK 200 billion per unit (in 2024 prices). The state has also acquired an 80% stake in EDU II from ČEZ for CZK 3.6 billion. Former Finance Minister Zbyněk Stanjura stated that the state’s majority ownership would ensure control over the project and likely simplify European Commission approval of state aid.
In December 2025, the European Commission launched an in-depth investigation into the state aid for Dukovany. While acknowledging the project’s necessity, it expressed concerns over whether the state loan complies with EU rules. The investigation is ongoing.
Further obstacles from the EU may arise. In early March, the Czech Chamber of Commerce warned that the proposed Industrial Accelerator Act could negatively impact investments in nuclear and renewable energy. Strict application of the “Made in Europe” principle could jeopardise projects relying on partnerships with non-EU entities.
Beyond financing, funds have also been allocated to mitigate the project’s regional impacts. The Dukovany area is expected to absorb around 10,000 new residents. A total of CZK 15 billion has been earmarked for 35 measures addressing infrastructure, housing, and healthcare, with CZK 12 billion provided by the state.
Czech Republic Moves Away from Dependence on Russian Fuel
Jirušek notes that nuclear energy still depends on imported fuel, posing a risk of supply dependency – though less severe than in oil and gas. This dependency remains an issue for the Czech Republic. Before Russia’s invasion of Ukraine, both Czech nuclear plants sourced fuel from Russia’s state-owned TVEL.
Diversification has progressed faster at the Temelín plant, where Russian fuel supplies have already ended. The plant is now supplied by the American company Westinghouse and France’s Framatome. ČEZ signed contracts with both companies in 2022 following a tender launched in 2018. Westinghouse delivered its first fuel shipments in May 2025, while Framatome is expected to begin deliveries this year, initially using fuel produced under a TVEL license. In the medium term, it aims to develop fully European nuclear fuel.
Diversifying fuel supplies for Dukovany has proven more complex. The plant received its first delivery from Westinghouse in June last year, following a 2023 contract. In early April, ČEZ also confirmed cooperation with Framatome to develop next-generation fuel assemblies for Dukovany reactors.
For now, however, TVEL remains the main supplier, with a contract running until 2028. ČEZ spokesperson Ladislav Kříž explained:
“Nuclear fuel is one of the most complex engineering products, always specifically developed for each plant. (…) In the case of Dukovany, the situation has been more complicated because, even before Russia’s invasion of Ukraine, no commercial supplier other than TVEL offered fuel for 440 MW reactors. Preparation takes years.”
He added that honoring the existing contract – approved by the Euratom Supply Agency and not subject to sanctions – provides sufficient time to safely transition to new fuel sources.
According to Kříž, ČEZ is no longer purchasing any additional materials from Russia.
SMRs Expected to Be Cheaper, but First Movers Will Pay More
Alongside expanding existing nuclear capacity and strengthening energy security, the Czech Republic is looking toward a new chapter: small modular reactors (SMRs). The ČEZ Group is heavily involved, holding a 20% stake in Rolls-Royce SMR. The company plans to build three SMRs at the Wylfa site in the UK, with another three planned in the Czech Republic.
Cooperation gained concrete form on April 24, when the state and ČEZ signed a memorandum.
Jirušek emphasises that the main advantage of SMRs is not their size.
“They still represent outputs in the low hundreds of megawatts—on par with or above the largest coal-fired units. Their main benefit lies in modularity and standardisation, enabling serial production and lower per-unit costs,” he explained.
However, SMRs remain nuclear installations, requiring strict safety and technical standards, which – like traditional nuclear plants – extend construction timelines.
While SMR development is promising due to potential cost reductions, early projects will likely be more expensive.
“Only once production scales up and processes are standardised can costs be expected to decline. By definition, the first SMRs cannot be cheap,” he concluded.
(source: update-eu.cz)
