Myths about the Temelín Power Plant

In the near future, even the Czech Republic will find itself in a situation in which, despite any optimal implementation of economic measures, the present power plants may not meet the needs of the enterprises and households within the context of the worldwide trend of growing electricity energy consumption, despite growing appliance energy efficiency.

Further, the results of analyses of the life span of electrical energy producers in the CR reveal that it will be necessary to invest into the electric power system even in case of an optimistic outlook, which would mean reduction in the energy intensity in the Czech Republic to the level of the most developed countries, excluding an increase caused by increasing industrial production in the next years.

Myth 1: Temelín is paid by taxpayers and it will increase electricity prices

The Temelín plant is not paid by taxpayers. They did not pay the existing one and are not going to possibly pay the consequent completion either. The whole construction is funded by CEZ, a. s., from its own resources and supplemented by loans. The plant has never drawn any contributions from the state.

The considered construction of new units would be financed by CEZ from its own resources and bank loans as well. The price of the construction will be the subject of offers made by suppliers. The electricity price for consumers is market-based and does not have a connection to the costs of completion of the Temelín Power Plant in any way.

Myth 2: A promise of cheaper electricity for the neighbourhood of the plant

Unfortunately, it is necessary to admit that those who point their finger at this promise are right. It is true that in the 1980s, when the decisions about the construction of the Temelín Power Plant were made, and under a totally different national regime, people could hear such promises from the party representatives and from representatives of the energy industry. In their defence it is necessary to say that probably nobody can foresee the market environment in a few years’ time and such a thing would become impossible.

The dominant electricity producer has to supply electricity to its customers under the same and equal conditions. Otherwise it would start quarrelling with the Antimonopoly Office, which keeps an eye on equal competition. That is why no group of consumers can be given an advantage, moreover, in the situation when the major supplier in the neighbourhood of the plant is a competitor, E. ON.

Such a promise will not be given in the case of potential completion, as it would not be fair to the people living near the plant.

Myth 3: The public was deceived about consumption

The decision to complete the Temelín plant made by the government in 1992 was based on electricity demand forecast by the Belgium consultancy company Tractebel. The chart clearly shows that those forecasts are not very different from reality, on the contrary, their accuracy is startling, which means citizens were not deceived as we sometimes hear.

Scenarios of electricity demand development in the Czech Republic

Source: Tractebel, CEZ

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Since the decision about the completion was made, other producers have however constructed power plants with an output higher than 1,500 MW despite being aware of the possible extension of Temelín by two units and knowing that it would become their competitor. This reason alone allows people to object that we could do without Temelín (but we can still say that we do not need the 1,500 MW built power plants). Still, a power plant cannot be built from day to day, or with the capacity that is needed at the moment. The first is absolutely impossible, the latter too expensive. Therefore power plants across the globe are constructed in advance so that they are ready to meet future needs.

From CEZ’s perspective, the Temelín 2,000 MW are not a contribution to power plant capacities, but the cheapest and most modern substitution for ageing coal-fired units with the same output, which were gradually shut down by CEZ in the 90s, as had been promised.

Myth 4: Deception regarding shutdowns of soft coal power plants

Coal-fired power plant reduction scheme

Under the reduction scheme, units and steam generating units with total capacity of 1.965 MW were gradually taken out of service. As a result the given promise to replace old coal units with the same capacity by Temelín was completely fulfilled.

Orientation diagram of the CEZ coal unit reduction scheme

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Total installed capacity of CEZ has increased by the output of the pumped-storage power station Dlouhe strane (2 x 325 MW), which, however, only accumulates energy, meaning it consumes electricity and consequently generates it.

Share of CEZ production capacity in the Czech Republic (installed capacity)

Source: CEZ

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