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After Severoceske doly CEZ completed a contract with Mostecka uhelna as well

1. 7. 2005

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After Severoceske doly CEZ completed a contract with Mostecka uhelna as well

CEZ Power Company has today completed a contract about coal supply with Mostecka uhelna spolecnost (MUS). The contract is variant based on if/how the territorial mining limits will be rationally revalued. The contract can thus be valid for roughly 50 years. The aim of this contract is to provide supplies for at least one brand new power unit in Pocerady and for the complex renewal of three present units in the same place.

At the same time, the supply conditions for the present resources for the period from 2006 to 2012 were specified. The contract with MUS has been the second long-term coal supply contract recently concluded by CEZ.

CEZ signed an amendment to the coal supply contract with Severoceske doly from 1997. The amendment newly specifies the parameters such as fuel quality or validity of the contract, which will be until 2052. The amendment does not change the volume of coal under the original contract, but the coal supplies were extended, so that they cover the entire time or the future operation of three plants. The referred-to plants are the completely rebuilt plants in Tusimice and Prunerov, further a completely new unit in the Ledvice locality.

Most of the current CEZ power plants date to the end of the 60s and the beginning of the 70s of last century. Ten years ago they were desulphurized and modernized, which stretched out their life span by 10-15 years. Most of them will thus end their operation after 2010. A renewal of a particular plant depends mainly on the sufficient supply of coal during its entire lifetime. "In case of a brand-new power plant we need coal for another 40 years from the moment of its start-up. We expect a 25 year operation in case of radical modernization with installation of new technologies?, explained Jiri Borovec, director of the production division CEZ. "Due to the limited coal resources, though, the coal resources cannot be renewed on present scale. Now, our coal-fired plants have a capacity of over 6,000 MW, the prepared projects are about a half volume. The volume of electricity produced in coal-fired plants will decrease to a half within roughly twenty years", added Borovec.

By reason of covering coal supplies for the rebuilt or brand new plants, CEZ has initiated negotiations with all mining companies. The agreement in case of Severoceske doly was reached first, because there has been a long-term contract between CEZ and Severoceske doly since 1997. The negotiations were only about its amendment.

The new plants, as well as the rebuilt ones, will be equipped with modern boilers with efficiency higher than the one of the current plant. Owing to this fact and other measures the ecological parameters of the new plant will be markedly better. All emissions will be lower even in comparison with the present conditions, which fully satisfy all strict European regulations.

Ladislav Kriz, Press Officer, CEZ, a.s.