Pavel Tykac‘s Sev.en Energy group will take over the Pocerady brown coal power plant from CEZ by the end of the year. It will become the new owner three years earlier than initially planned. The original agreed-upon price of two billion crowns for the transfer in 2024 increased to 2.5 billion crowns.
They agreed to accelerate the power plant’s sale due to the European Union’s new emission standards. At the end of 2019, CEZ did not exercise an option to continue operating the plant. Even then, they did not rule out that the companies would conduct further negotiations on the power plant transfer.
“Following negotiations with ČEZ, Sev.en Energy will buy the power station for a higher price but three years earlier than originally planned. The reason is that we want to prepare Počerady for meeting the EU’s stringent emission limits, applicable from 2021, as soon as possible,” says Luboš Pavlas, the CEO of Sev.en Energy Group.
Upon completing the sale, CEZ will terminate its coal contract with Vršanská uhelná. CEZ will sell the plants electricity on the market
The Pocerady power plant is located between Louny and Most. With an installed capacity of 1,000 MW, it is one of the country’s largest coal-fired power plants. Representatives of Sev.en Energy announced in March that the company wants to modernize the Počerady power plant to be in operation even after 2028 when even stricter regulations by the European Commission come into force. The company intends to invest billions of crowns in the power plant.
At the time, Lubos Pavlas, CEO of Sev.en Energy, said that the modernization and greening of Počerad would help the Czech Republic secure electricity for consumption until a new unit was built in Dukovany and renewable energy sources were expanded. “It will also be an important backup for the daily and yearly periods when mainly photovoltaic and wind power plants supply electricity on an intermittent basis,” Mr. Pavlas added.