ČEZ to Sell the Chvaletice Power Plant to Litvínovská uhelná

ČEZ has selected the highest offer it had received in its process to divest some of its coal-fired power plants. Today, ČEZ signed a contract to sell the Chvaletice power plant to Litvínovská uhelná a. s. The selling price is CZK 4.12 billion. Moreover, ČEZ will annually obtain 90% of the market value of CO2 emission allowances allocated for free to the Chvaletice power plant, which will then be used to further upgrade its power plants. This concerns 5.3 million tons of allowances in a total value of some CZK 450 million in their current prices. The signed contract does not cover any coal supply arrangements with ČEZ. The European Commission now just needs to confirm that the buyer, Litvínovská uhelná a.s., is sufficiently qualified.

ČEZ initiated the divestment process last year in July. It is related to ČEZ’ decision to put a quick end to the European Commission’s investigation launched in 2009, and to do so by means of a settlement agreement, in which ČEZ agreed to sell one of its coal-fired power plants. Another reason for the divestment is a fact that Chvaletice is one of the power plants that were not foreseen to be operated in the long run among ČEZ’ portfolio of power generation assets.

In line with its strategy to operate just low-emission sources of power in the future, ČEZ namely decided to invest significantly only in upgrading coal-basin power plants in the Czech Republic, to which ČEZ can supply coal from its own mines, without facing a risk of commercial disputes over coal supply. This applies to the power plants in Ledvice, Tušimice, and Prunéřov, in which ČEZ has invested substantially to ensure they meet all relevant environmental standards, to significantly improve their efficiency and reduce CO2 emissions compared to the present levels, and to make them operable for the decades to come.

Chvaletice Power Plant:

The Chvaletice power plant (with a total installed capacity of 800 MW) consists of four 200MW units, which were commercially launched over a period of one year – from late 1977 till the end of 1978. The facility uses condensing three-body equal-pressure steam turbines with eight non-regulated steam outlets. Their nominal output is 200 MW. There are flow-through two-draft boilers with a granulating furnace. Due to its smokestack that is over 300 m tall, Chvaletice is a dominant of Eastern Bohemia. The cooling towers are about 100 m tall, with their ground diameter being around 60 m.

Originally, the fuel for the Chvaletice power plant was supplied in a combined mode (by railway to Lovosice and from there by river boats). For cost reasons, since 1996 the coal has been transported to the site solely by railway. The wagons are unloaded on a rotary tipping apparatus. Then the coal is transported by belt conveyors to a coal storage site or directly to the boiler room.

19. 3. 2013