ČEZ to sell Počerady plant, shut down coal resources by 2040

Czech utility ČEZ plans to sell its Počerady coal-fired power plant to Se.ven Energy financier Pavel Tykač when an option comes available at the end this year and shut down most of its coal resources by 2040.

Vršanská uhelná, part of the Se.ven Energy holding, should start operating the plant as of 2024. The company entered into 50-year contract with ČEZ in 2013 to supply coal to the power plant, which included two options to sell it.

Tykač set up the Se.ven Energy holding company with the aim of investing more than 1 billion euros power plants fired by fossil fuels, even as utilities shift to renewables.

In 2017, Tykač was to offer 10 billion crowns for the Počerady plant, but the supervisory board of state-controlled ČEZ rejected the sale. Prime Minister Andrej Babiš (ANO), then minister of finance, also opposed the sale.

Author: Brian Kenety