DOOSAN Škoda Power

KEY SECTORS

22 Czech Republic – Your Trade Partner

Power Industry in the CR – Stable and Prospering Sector

AMONG THE FIRST TEN LARGEST ELECTRICITY EXPORTERS IN THE WORLD

The power industry is one of the most important sectors in the Czech Republic. Its strength is based not only on the long years of its continuous development, ingenious use of resources and the manufacture of power generating equipment, but also on the self-sufficiency of the Czech Republic in electricity and heat production.

This self-sufficiency is secured mainly by domestic brown coal deposits and also the use of nuclear fuel. As a member of the European Union, the Czech Republic is bound by common standards and commitments. This means reducing negative impacts of electricity production on the environment, supporting alternative and renewable energy sources and also the development of new energy-saving technologies. The Czech Republic is one of the few EU member states which comply with these commitments.

VISION FOR THE NEXT 25 YEARS

The actual situation and the evaluation and vision of this sector for the future are summed up in a document called Updated State Energy Concept (ASEK), dating from 2015 and encompassing the next 25 years. The primary targets are the maintenance and development of the diversity of power production, which means a balanced mix of primary energy sources, development of the web infrastructure of the Czech Republic within the framework of Central European countries, strengthening of international cooperation, and electricity and gas market integration in the region, including the creation of an efficient and operational common energy policy of the European Union, support of research, development and innovation, support of education and, last but not least, raising the country´s energy safety and resistance.

GWh

100 00090 00080 00070 00060 00050 00040 00030 00020 00010 000

Development and structure of gross electricity production

02010 2015 2020 2025 2030 2035 2040

Source: Ministry of Industry and Trade, www.oenergetice.cz, www.usinessinfo.cz

Renewable and secondary energy sources

Other fuels

Nuclear power

Other gases

Natural gas

Brown coal

Black coal

ELECTRICITY PRODUCTION AND EXPORT

Steam thermal power plants account for the largest share of electricity production in the Czech Republic (53.6 per cent of electricity produced and supplied to the grid), followed by nuclear power plants (29.4 per cent), steam-and-gas power plants (5.2 per cent),

gas and combustion plants (4.4 per cent), photovoltaic plants (2.7 per cent), hydroelectric power plants (2.6 per cent), pumped storage plants (1.5 per cent), and wind power plants (0.6 per cent). Heat is produced mainly in co-generation power plants as a side product in electricity production or in city heating plants; co-generation is a very widely used and highly developed system in the Czech Republic. Nuclear energy is produced in the Temelín and Dukovany power plants, to which the addition of new energy blocks is planned. Since its launch in the year 2000, the Temelín nuclear power plant has figured continuously among the first ten largest electricity exporters worldwide. Considerable amounts of electricity cross the border to neighbouring Austria and Slovakia. Most of the exported electricity is generated by the Temelín and Dukovany power plants.

CZECH POWER INDUSTRY AND THE WORLD

The Czech power industry has an outstanding reputation and its products rank among the best in the world. It offers excellent quality at a friendly price. Rival firms in Asia combine their power plants with American and European technologies. Therefore a good possibility exists for Czech sub-deliveries to become included in the supplier chain. Czech manufacturers can successfully compete with rival firms, also offering lower prices combined with new products and consulting in the energy sector. Czech firms participate in the construction of power plants and the supply of products in practically all parts of the world, whether this concerns nuclear, thermal, hydroelectric, or solar power plants. The participation of Czech firms in the construction of nuclear power plants abroad is essential, one reason being that currently no nuclear reactor is being built in the Czech Republic. The following are a few examples of projects which Czech firms have realised abroad or participated in their realisation: Czech manufacturers participate, for example, in the modernisation and reconstruction of

Czech Republic – Your Trade Partner23