The European Commission has launched an in-depth investigation to determine if the public support planned by Czechia for two new nuclear units at Dukovany aligns with EU State aid regulations.
In April 2024, the Commission approved aid for one new reactor at the existing Dukovany site. Following this, the Czech government decided to expand its investment in nuclear energy to accelerate electricity sector decarbonisation and address a projected shortfall in electricity supply. In October 2025, Czechia informed the Commission of its intention to support the construction and operation of two additional nuclear units, each with a generation capacity of up to 976 megawatts electric (MWe).
The two units are expected to begin operations in 2036 and 2037. They are intended to strengthen electricity security for Czechia and neighboring countries, contribute to decarbonising the energy sector, and diversify the national energy mix. The beneficiary is Elektrárna Dukovany II (EDU II), which was established for this project and is owned by the Czech state (80%) and ČEZ (20%), currently the only operator of nuclear power plants in Czechia.
Czechia’s support includes three main measures: a low-interest repayable state loan estimated between €23 billion and €30 billion covering all construction costs; a two-way contract for difference (CfD) lasting 40 years to stabilize revenues; and a mechanism protecting EDU II from policy changes or adverse impacts due to long-term exposure.
According to a preliminary assessment, “the Commission has found the project necessary and considers that the aid facilitates the development of an economic activity.” However, it noted concerns about whether “the measure is fully in line with EU State aid rules.” The investigation will focus on:
– Whether the combined aid measures are appropriate and proportional, ensuring no more aid than needed is provided.
– The impact on market competition, particularly regarding design elements of the CfD that remain unclear. The Commission stated it cannot yet confirm there are sufficient safeguards against reinforcing ČEZ’s market power or transferring aid benefits improperly.
– Compliance with other EU laws, including Article 19d(2) of the Electricity Regulation related to CfDs.
The Commission said it will continue its review “to determine whether its initial concerns are confirmed.” It added that opening an in-depth inquiry allows both Czechia and interested third parties to submit comments but does not predetermine any outcome.
Under EU law, member states can choose their own energy mix. Support for nuclear projects must be necessary, proportionate, and not harm trade interests. Since July 2024, compliance with updated electricity market design rules is also required.
A non-confidential version of this decision will be published under case number SA.117794 on the State aid register available via the Commission’s competition website once confidentiality matters are settled. New decisions are listed regularly in the Competition Weekly e-News.
“The opening of an in-depth inquiry also gives Czechia and interested third parties the opportunity to submit comments. It does not prejudge the outcome of the investigation,” according to information from the European Commission.