Earlier in October, Lukáš Vlček was appointed as Czechia’s Minister of Industry and Trade. We spoke with Minister Vlček about his main priorities, including the completion of negotiations on the tender for the construction of new nuclear sources in Dukovany, the potential of small modular reactors (SMRs), the prominent role of the Czech Republic in the European hydrogen corridor and the steps required to modernise energy transmission and distribution systems.
Q: One of your key focuses will be the development of nuclear energy and you’ve mentioned the importance of completing the new nuclear units in Dukovany. What are the key challenges you face in this project and how do you plan to overcome them?
A: Nuclear energy will play a vital role in the future energy mix of the Czech Republic. Its share of electricity production is projected to reach around 40 per cent by 2030 and up to 60 per cent by 2040. The Dukovany project is one of the largest in the country’s history, critical for ensuring energy security and self-sufficiency. The construction of new nuclear units will secure a stable and affordable energy supply for households and businesses.
The selection of a supplier is based on a comprehensive evaluation by approximately 200 experts. Key factors include adhering to the timeline, cost management and maximising the involvement of Czech companies, which is expected to reach up to 60 per cent of the project’s value. To ensure this participation, we conduct daily negotiations with both the supplier and local firms. Additionally, this project goes beyond just building a power plant—it drives regional development in areas like housing, education and transportation infrastructure. Our goal is to leverage these opportunities for the benefit of the entire country.
Q: Small modular reactors (SMRs) are seen as a crucial part of the future energy mix in the Czech Republic. How do you see SMRs complementing existing nuclear plants and what benefits do you anticipate for the Czech economy and energy sector from this new technology?
A: In addition to new large-scale reactors and renewable energy sources, SMRs could play an important role. This promising technology will enhance energy security and sustainability amidst rising electricity demand. SMRs also have significant potential to modernise the Czech energy sector, particularly by replacing outdated coal-fired power plants. SMRs offer notable economic opportunities and position the Czech Republic as a European leader in developing innovative, high-value technologies. This represents a major advancement not only for the energy sector but also for the Czech nuclear industry, which possesses unique expertise. These efforts bring significant added value, precisely what the Czech economy needs.
However, to fully assess the SMR technology and its real potential including the economy, we need to have experience and data from construction, commissioning and operation. We expect to have the first-of-kind SMR in the 30s.
Q: The Czech government has secured a partnership with Rolls-Royce SMR to develop SMRs. What role will Czech companies play in the supply chain for these reactors, both domestically and internationally?
A: ČEZ Group’s partnership with Rolls-Royce SMR represents a significant strategic alliance, linking the Czech and British nuclear industries. This collaboration paves the way for further opportunities in science, research and hydrogen technologies. Moreover, it is expected to stimulate interest in technical education, ensuring a steady pipeline of skilled professionals. This focus benefits not only the nuclear sector but also industries outside of energy.
Q: The Czech Republic is working on a hydrogen backbone network in cooperation with NET4GAS. Can you tell us more about how this infrastructure will position the country as a key player in the European hydrogen market and its potential to decarbonize the energy sector?
A: The Czech Republic’s robust gas infrastructure and central European location offer unique advantages for developing a hydrogen economy. Our goal is to build a backbone network for hydrogen transport, creating European hydrogen corridors. This will enable the Czech Republic to become both a significant transporter and supplier of affordable hydrogen. This infrastructure supports energy sector decarbonisation and contributes to meeting European climate goals.
Currently, NET4GAS is planning two projects to establish the hydrogen backbone, including repurposing existing infrastructure to connect the Czech Republic with Germany and Slovakia. These projects enjoy support not only from the Czech government but also from Germany and Slovakia, as they form part of the broader European hydrogen network.
Q: With the Czech Republic’s role in the European hydrogen corridor becoming more prominent, what steps are being taken to ensure cooperation between different countries and industry stakeholders to achieve a seamless hydrogen transport system?
A: We actively participate in European Projects of Common Interest (PCI), focusing on repurposing gas transport systems for hydrogen and advancing hydrogen technologies, production and usage. Inclusion in PCI projects opens the door to potential funding through EU mechanisms like the Connecting Europe Facility (CEF).
Q: You’ve highlighted the importance of modernising transmission and distribution systems for energy. How do you envision these upgrades ensuring the stability of the energy infrastructure, particularly in light of growing renewable energy sources and the increased demand for electricity?
A: Modernising transmission and distribution systems is essential to ensuring energy infrastructure stability. Investments will enable renewable energy integration, more efficient grid management and expanded capacity for new energy sources. These upgrades not only enhance energy security but also support decarbonisation and prepare the grid for rising electricity demand from households and industries.
Q: In terms of energy policy, you plan to push through a new amendment to the Energy Act, introducing modern rules for the electricity market. How will these changes impact energy consumers and businesses in the Czech Republic?
A: The proposed amendment will modernise the energy sector and provide better consumer protections. Key measures include enabling electricity storage, aggregation and flexibility, allowing households and businesses to better manage energy production and consumption. These steps will enhance energy independence, reduce energy costs and contribute to lowering the regulated component of electricity prices.
Q: Following the Czech Republic’s efforts to reduce reliance on Russian gas, what steps are being taken to ensure long-term energy independence and the diversification of energy sources? Can you explain the role of the new LNG terminals and partnerships in achieving this?
A: We have implemented measures to bolster energy security and independence by diversifying gas supplies. This includes partnerships with reliable suppliers, importing gas from Norway and securing capacity at an LNG terminal in the Netherlands, which accounts for up to one-third of annual gas consumption. Additionally, in cooperation with ČEZ, we secured capacity at a newly constructed LNG terminal in Stade, Germany, expected to be operational by the second half of 2027.
Q: As the energy landscape in Europe continues to evolve, what are your priorities for ensuring that the Czech Republic remains competitive in the global energy market while meeting the EU’s decarbonisation and energy security goals?
A: Our priority is to ensure the Czech Republic remains globally competitive while aligning with EU decarbonisation targets. This involves expanding nuclear energy, developing renewable energy sources and investing record amounts into energy sector modernisation.
Since the Russian invasion of Ukraine, we have introduced seven amendments to the Energy Act, focusing on energy security, reduced dependency and faster permitting processes. The LEX OZE I–III amendments promote renewable energy, consumer protection, community energy and modern energy solutions like aggregation, storage and flexibility.