Generation, Technology, Organization
In 2010–2011, CEZ Group offered end customers in the Czech Republic the following commodities and related services:
- electricity (ČEZ Prodej, ČEZ),
- natural gas (ČEZ Prodej),
- heat, i.e. thermal energy (ČEZ, Teplárna Trmice, ČEZ Teplárenská, ČEZ Energo, Elektrárna Chvaletice, Energetické centrum, ČEZ Energetické služby),
- electricity distribution (ČEZ Distribuce).
Customers can order electricity and natural gas directly, in the form of supplies of the actual commodity (Electricity or Natural Gas Supply Contract), in which case the customer obtains distribution service through a separate Distribution Service Supply Contract. Much more frequently, however, they do business with us through an Integrated Supply Contract for the commodity in question, under which ČEZ Prodej provides the customer not only with supplies of the commodity, but also arranges for provision of distribution services by the relevant local distributor in accordance with applicable legislation.
Location of CEZ Group Power Sources in the Czech Republic
Despite ongoing market liberalization, CEZ Group is still the biggest supplier of electricity to end customers in the Czech Republic. We offer our existing and potential new customers in all market segments innovative products and services, and adapt them to the customer’s needs in justified cases. This enabled us to defend our leading position in all three basic segments – large endcustomers, retail-commercial, and retailresidential – in 2011. As increased competitive pressure in the electricity market has expanded into the retail-commercial and retailresidential segments, CEZ Group’s market share in these segments declined despite the above-average success rate of our customer retention initiatives in 2011.
In 2011, CEZ Group power plants in the Czech Republic generated a total of 63,321 GWh of electricity, up 57 GWh from 2010. In 2010, CEZ Group power plants in the Czech Republic generated a total of 63,264 GWh of electricity, up 2,422 GWh from 2009.
At December 31, 2011, CEZ Group companies in the Czech Republic owned generation installations with aggregate installed capacity of 12,813.6 MW, up 85.7 MW from year-end 2010. The most significant changes included a 70 MW increase in the installed capacity of Unit 1 of Dukovany Nuclear Power Station following a turbine rebuild, the obtaining of 11.1 MW of installed capacity in cogeneration units within the company ČEZ Energo, the commissioning of a new turbine with 4.1 MW of installed capacity in Dvůr Králové nad Labem, and the commissioning of the Číčov biogas station belonging to the company Bioplyn technologie with 0.526 MW of installed capacity.
In 2011, CEZ Group became the biggest alternative supplier of natural gas in the Czech Republic in terms of the number of customers acquired. The chosen strategy in the residential segment, resulting in over 174,000 new customers acquired in 2011, followed the Group’s successful entry into the natural gas market in the corporate customers segment in past years. Thus, CEZ Group now supplies natural gas to customers in all market segments – large end-customers, mediumsized end-customers, small end-customers, and residential customers.
CEZ Group heat generation sources in the Czech Republic supplied a total of 10,422 TJ in 2011. In terms of the year-on-year comparison, this represents a 731 TJ (–7%) decline in supplies. Compared to 2010, the only addition to the production portfolio was ČEZ Energo, which generates heat in smallscale gas-fired cogeneration units.
In the Czech Republic, the CEZ Group company that distributes electricity is ČEZ Distribuce, which arranged for 32,613 GWh of electricity to be supplied to customers in 2011. The year-on-year decrease of 324 GWh was caused, in particular, by lower demand for electricity associated with weather conditions. In terms of voltage levels, the decrease took place mainly in the low-voltage segment (down 736 GWh). At the medium and high voltage levels, on the other hand, distribution volume grew – by 324 GWh and 88 GWh, respectively.
CEZ Group focuses in particular on markets in Central and Southeastern Europe. Primarily, it concentrates on countries in which it already operates in some form, and where it can apply its rich experience in managing an electricity conglomerate at a time of a newly liberalized power market and pass on its know-how. Another important aspect of CEZ Group’s international operations is renewable sources of energy – in locations where the natural conditions are amenable to this purpose. CEZ Group is one of the ten biggest energy corporations in Europe.
2011 was the Group’s most successful year yet in terms of its international acquisitions. The aggregate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of the international acquisitions reached nearly CZK 11 billion, which is CZK 2 billion higher than the 2010 result which itself was the highest at the time. So far, the results of ČEZ’s international acquisitions have generated nearly 80% of the amount invested in them.
At year end 2011, CEZ Group included 76 international companies with nearly 14,000 employees in eight countries of Central Europe, Southeastern Europe, and Turkey. These companies now contribute CZK 67 billion to CEZ Group’s revenues and account for one quarter of the Group’s fixed assets.
In addition to the Czech Republic, there are CEZ Group companies with direct energy sector operations in Albania, Bulgaria, Hungary, the Netherlands, Poland, Romania, Slovakia, Serbia, and Turkey. In Albania, CEZ Group operates the country’s sole distribution company. In Bulgaria, it distributes and sells electricity in the western part of the country and generates power in its own coal-fired power plant near Varna, the Black Sea port city. In Poland, two black coal-fired power plants near the country’s border with the Czech Republic are part of CEZ Group, as is a company that is preparing to build wind power plants. In Romania, CEZ Group is involved in the generation of electricity from renewable sources through the operation of the Fântânele and Cogealac wind farms and the Reşiţa hydro power system, in addition to electricity distribution operations. In Turkey, CEZ Group and its local partner operate a distribution company and generate electricity in gas, hydro, and wind power plants. In the remaining countries, the companies carry on wholesale operations in electricity, other commodities, and related derivatives, function as holding companies, or engage in financing activities. Throughout Central and Southeastern Europe, CEZ Group engages in wholesale trading in electricity and natural gas.
CEZ Group is one of Europe’s top ten power companies
Anniversaries of CEZ Group Power Plants
Several CEZ Group power plants celebrated anniversaries in 2010.
- The first Czech nuclear power plant celebrated 25 years in operation. Thanks to its safe, reliable, and efficient operation, the plant in Dukovany is the flagship of CEZ Group’s generation portfolio. In recent years it has managed to get into the top one-fifth best operated nuclear power plants in the world and its operating indicators are better than the European Union average. It is even among the world’s best in terms of certain indicators.
- December 2010 marked ten years since the first reactor unit at Temelín Nuclear Power Station generated its first kilowatt-hour of electricity. Before the plant was commissioned, the region of South Bohemia where the Temelín plant is located was forced to bring in electricity from other areas – primarily from environmentally burdened North Bohemia. The plant in Temelín made it possible to replace, once and for all, the aging coal-fired power plants in North Bohemia that were being shut down one by one. This year saw the total amount of electricity generated so far by the Temelín plant pass the 100 billion kWh mark. That is enough to power all Czech households for a period of nearly seven years.
- 2010 marked 35 years since May 1975, when the first generating units of the power plant in Dětmarovice (North Bohemia) came on-line. Construction on the plant, located at a site adjoining the Polish border near the Bohumín – Český Těšín railroad corridor, began in 1971. The plant’s generating units went on-line one-by-one between May 1975 and November 1976. The project was designed by Energoprojekt Praha, the contractor for the construction portion was VOKD Ostrava, and the technical equipment was supplied by Škoda Plzeň.
- Four decades have passed since the commissioning, in 1970, of units 1 and 2 of Počerady Power Station, one of the most utilized coal-fired power plants in the Czech Republic. With its installed capacity and relatively high level of use, it plays a substantial role in the economy and environment of Northwestern Bohemia. The plant generates heat only for use in its own operations. Technical and environmental programs implemented at the plant ensure reliable, economical, and environmentally-sound operation, fully comparable with similar plants in other advanced European countries.
- The smallest and, at the same time, the oldest of the jubilee-celebrating power plants is Černé jezero, which turned 80 in 2011. The first pumped-storage hydro power station in the Czech Republic, the station is located in Šumava, at an elevation of 1,008 meters above sea level, in a beautiful natural setting northwest of Železná Ruda featuring the biggest glacial lake in Šumava and also the biggest natural lake in the Czech Republic. Černé jezero Lake has an area of 18.43 hectares and a maximum depth of 40.6 meters.