CEZ is planning to invest up to 30 bn CZK into construction of renewable power resources

We can see the biggest potential for the next period in the area of wind power, as technological development already enables an effective generation of electricity from wind even in the areas out of the mountain regions. Consequently we are ready to realize all economically meaningful projects and invest into the development of renewable resources up to 30 billion CZK within the following 15 years, said Martin Roman, Chairman of the Board of Directors and CEO of CEZ.

CEZ Obnovitelne zdroje has prepared a demand for a purchase of wind power plant projects with the condition that the minimum output of one wind farm should reach 10 MW. Present conditions of the support of wind power development are set up in such a way that wind power plants can be operated with good economic returns in case of the right choice of locality and type of equipment, said Josef Sedlak, director of CEZ Obnovitelne zdroje.

CEZ Group has prepared 3 schemes for the development of electricity production from renewable resources until 2010. Based on the lowest scheme ( Small scheme), the production from renewable power resources would rise by 20% (from 1.6 TWh in 2005 to 1.9 TWh in 2010). CEZ Obnovitelne zdroje would have to put into operation wind power plants with the total generating capacity of 100 MW then. According to the Big scheme, the total production from renewable power resources within CEZ Group would increase by 100 % (to 3.2 TWh). CEZ Obnovitelne zdroje by itself should operate wind power plants with the total capacity of 500 MW. While choosing the building site we want to give a priority consideration to our own localities. , explained Sedlak and added: In these days we are also revising our possible entry into the project Vetrny park Chomutov (Wind Park Chomutov), which is now the largest in Europe.

CEZ Group increased the electricity generation from renewable resources by 18 % in 2005 compared to 2004. CEZ Group´s share of the electricity production from renewable resources in the Czech Republic rose from 51 % in 2004 to 56 % in 2005.

In its power policy, the European Union set an objective to increase the share of power production from renewable resources to the level of 20 % by 2020. The Czech Republic has set up an indicative goal to generate 8 % of power from renewable resources in 2010. To fulfil this objective it would be necessary to almost double the production from renewable resources in the Czech Republic. CEZ Group as the largest power producer in the Czech Republic is ready to contribute significantly to the fulfilment of this goal, said Josef Sedlak.

CEZ Obnovitelne zdroje was established in CEZ Group under the project VIZE 2008 (VISION 2008) last year and its aim is to cover in the activities of the group in the area of renewable resources exclusive of large hydro power plants and large biomass co-burning resources. The company CEZ is its 100 percent owner. The firm will operate 21 hydro power plants of CEZ Group in the middle of this year and is preparing an extensive investment program of further development of renewable power resources.

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

Appendix:

The renewable power resources development plan in CEZ Group

CEZ Group production from renewable power resources
year	2005	2010 (plan)
		Small scheme	Middle scheme	Big Scheme
CEZ Group Total production /TWh/	1,6	1,9	2,4	3,2
out of that CEZ Obnovitelne zdroje production /TWh/	0,2	0,4	0,8	1,5
CEZ Obnovitelne zdroje wind power plants capacity		100 /MW/	200 /MW/	500 /MW/

13. 4. 2006