Czech state-controlled power utility ČEZ is preparing to sell off two of its coal-fired power stations, neither of which has been modernized and the operation of which would require an investment into reducing emissions to meet the emission limits applicable from 2016.
“The main reason behind the considered sale of both power stations is the uncertainty of coal supplies after 2013 due to as yet inconclusive negotiations with the fuel supplier, Czech Coal,” CEZ spokesman Ladislav Kříž said in a press release issued on Thursday, speaking of the Prague-listed company’s Počerady and Chvaletice plants.
ČEZ has already begun preparing documentation to for a pre-investment screening of potential buyers, he said, and contractual documentation is in the preparatory stage. The Chvaletice power station (total installed output of 800 MW) has already been spun off into an independent joint stock company in view of its potential sale, and work is also underway to spin off the Počerady power station (1,000 MW).
“Spinning off these two companies will provide flexibility in strategic negotiations,” Kříž said, noting that Czech Coal and Energetický a Průmyslový Holding (EPH) have both already expressed interest in buying the two power stations.
“Other potential buyers may join these two companies. A final decision whether to sell or keep and further develop the two plants within own portfolio will depend mainly on the buy prices offered, the quantity of brown coal available to ČEZ Group in the coming years, and on an economic feasibility of operating these two facilities,” Kříž said.