CEZ will rebuild the Tusimice and Prunerov power plants, and wants to build new plants in Ledvice and Pocerady

CEZ Power Company will completely rebuild its coal-fired plants in Tusimice and Prunerov. Ledvice and Pocerady, the localities of the present plants, have been chosen for the new plants. CEZ has provided coal supplies for the first three projects from Severoceske doly. An amendment to the coal supply contract from 1997 has been signed lately. It specifies the parametres like fuel quality or the validity of the contract, which will now be until 2052. The amendment does not change the volume of coal under the original contract, but the coal supplies will be extended, so that they cover the entire time of the future operation of the reffered-to plants. The worth of the contract is roughly 150bn CZK. 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, Member of the Board of CEZ and director of the Production division. "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 volume of roughly 3,000 MW. 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. An agreement has already been reached in case of Severoceske doly, because there has been a long-term contract between CEZ and Severoceske doly since 1997. The negotiations were only about its amendment, which extended the validity of the contract from original 2030 until 2050. The agreement also specifies coal quality, which is an important parameter for the right choice of new technology for the new plant. Despite a nearly 20 year extension of validity, the total volume of supplied fuel will not increase. However, by extending the original contract CEZ has provided fuel for entire lifetime of its three future coal-fired plants. "We can start the plants´ renewal now. It is high time we started regarding the necessary time for preparations and for the building-up itself. We are accordingly glad, that we have agreed on coal supplies with Severoceske doly. It is important security for both sides, their employees and suppliers. Both companies can now efficiently invest in equipment, which brings economies to both sides," said Martin Roman, CEO and Chairman of the Board of CEZ.

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.

1. 6. 2005