Czech Republic to invest $19b in major nuclear expansion

The Czech Republic has launched a $19 billion nuclear expansion aimed at doubling its output and phasing out fossil fuels, with work already underway at the Dukovany power plant for two new reactors.

Mobile drilling rigs are carrying out deep geological surveys at the site, part of a broader plan to secure the country's long-term energy supply and meet emissions targets. The new units, each expected to produce more than 1,000 megawatts, will be built by South Korea's state utility KHNP, which beat France's EDF in a competitive tender.

Once operational in the second half of the 2030s, the reactors will operate alongside Dukovany's four 512-megawatt units from the 1980s. The agreement also gives Prague the option to add two more reactors at the Temelín plant, which currently houses two 1,000-megawatt units. Officials say small modular reactors will follow.

"Nuclear will generate between 50% and 60% of electricity around 2050 in the Czech Republic, or slightly more," said Petr Závodský, head of the Dukovany project.

Officials say expanding nuclear capacity is crucial as demand rises from data centers, electric vehicles and industry. It also supports Prague's plan to replace coal, which currently supplies about 40% of the country's power.

The Czech investment comes amid renewed interest in nuclear energy across Europe as governments seek low-carbon alternatives. The EU has categorised nuclear as a "sustainable" investment, opening the door to financing. Belgium and Sweden have reversed plans to phase out atomic power, while Denmark, Italy and Poland are reassessing their options. Twelve EU states are now considered pro-nuclear.

The UK plans its largest nuclear build since 1995, and the Czech utility CEZ has partnered with Rolls-Royce SMR to develop small modular reactors.

The government will hold an 80% stake in the Dukovany expansion and secure a long-term loan that CEZ will repay over 30 years. Prague will guarantee stable electricity revenue for CEZ for four decades, subject to EU approval.

Uncertainty over financing previously stalled the program, including the cancellation of a major tender in 2014.

Russia's Rosatom and China's CNG were excluded from the Dukovany tender on security grounds after Moscow's invasion of Ukraine. CEZ has since signed fuel supply deals with Westinghouse and France's Framatome, reducing dependence on Russia. The KHNP contract guarantees 10 years of fuel.

While nuclear enjoys broad domestic backing, environmental groups argue the investment is too costly and note the absence of permanent storage for spent fuel. Austria, which borders both Czech nuclear sites and remains strongly anti-nuclear, has already opposed plans for small modular reactors. The countries previously clashed over Temelín in 2000, triggering border blockades.

Despite concerns, Czech officials insist the expansion is essential to replace coal and ensure long-term energy security.