The European Commission has launched a detailed investigation into Czechia’s proposed public support of up to €30 billion for the construction and operation of two new nuclear power units at the Dukovany site.
Czechia notified the European Commission in October 2025 about its plan to back the two units, which are expected to generate up to 976 megawatts of electricity each and begin operating in 2036 and 2037, the Commission said in a statement on Monday.
The aim is to address an identified gap in electricity supply and accelerate the decarbonisation of the country’s energy system.
The recipient of the support would be Elektrárna Dukovany II (EDU II), a company largely owned by the Czech government and the utility firm ČEZ.
Key features of the support package include a low-interest state loan estimated between €23 billion and €30 billion to cover construction costs; a 40-year contract for difference (CfD), which provides stable revenues for the nuclear plant; and a mechanism to protect EDU II from possible future policy changes and adverse impacts.
A contract for difference is a long-term financial agreement that locks in minimum and maximum prices, helping producers manage the risks of fluctuating energy markets.
Competition concerns and market impact
The Commission noted that although the measures were found necessary in a preliminary assessment, there are concerns about whether the full package complies with EU state aid rules.
The investigation will focus on whether the aid is proportionate, whether it unduly limits financial risk for the beneficiary, and whether it might strengthen ČEZ’s market power in a way that could distort competition.
The Commission said some design elements of the contract for difference are not yet fully specified, making it difficult to assess whether the agreements maintain incentives for efficient operation and maintenance.
There are also questions about whether safeguards are in place to prevent the aid from being transferred to consumers or specific market participants.
Compliance with wider EU law, including the latest electricity market rules introduced in July 2024, will also be a focus. These rules set out principles for such support to ensure fair competition and appropriate market design.
The investigation is ongoing and allows Czechia and other interested parties to submit comments.
The opening of this inquiry does not determine the final outcome, the European Commission stated.
