Solution for Future Electrical Supply in the Middle Europe

Nuclear Power

Ivo Kouklík ivo.kouklik@cez.cz

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CONTENT

ČEZ Group introduction

Energetic situation in the Czech Republic

ČEZ nuclear experience

Nuclear power plant construction - preparation from the beginning

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The Czech transmission grid is owned and operated by CEPS, 100% owned by the Czech state

ČEZ IS A DOMINANT PLAYER IN ALL SEGMENTS OF THE CZECH ELECTRICITY

MARKET

Lignite mining Generation Transmission Distribution Supply for final consumption

CEZ

Others

5 out of 8 distribution companies

62% of customers

45%22 million tons

55%27 million tons

72%59.5 TWh

28%23.1TWh

100%62 TWh*

54%31.1 TWh

46%26.5 TWh38% of customers

ZCE, SCE, STE, VCE, SME

Source: CEZ, ERU

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CEZ ABROAD

Own assets

Trading office

Czech republic Electricity sales (TWh) Number of customers (million) Installed capacity (MW)

Romania (EDC Oltenia) Electricity sales (TWh) Number of customers (million)

Bulgaria (3 EDCs in western region + Varna PP 1260 MW) Electricity sales 8 TWh

Number of customers 1.9 million

683.4

12,300

Source:CEZ, a. s.

Poland (Elcho, Skawina) Installed capacity (MW)

900

71.4

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Germany Poland

AustriaSlovakia

Germany

CEZ, A. S. - POWER PLANTS

Total 12 300 MW

AJ

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ČEZ ELECTRICITY PRODUCTION IN 2006

Production

Installed Power

2 Nuclear

3 760 MW

26 TWh

10 Coal

6 603 MW

33,7 TWh

11 Hydro + 1 Solar + 1 Wind

1 935 MW; 2 TWh

Nuclear Power Plant is giant

source of energy

Source : CEZ Annual Report 2006

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DECOMMISSIONING OF CURRENT POWER PLANTS AND GROWTH OF CONSUMPTION CAUSE LACK OF ELECTRICITY

Domestic consumption with savings

Domestic consumption without savings

0

20

40

60

80

100

120

2005 2010 2015 2020 2025 2030 2035 2040

Refurbishment of coal power plants

Gas and other renewables

Nuclear power plants

Hydro

Missing production capacity

Current coal power plants

Production of current power plants vs. consumption growth

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LOW VARIABLE COST AND HIGH UTILIZATION ALSO GIVE A GOOD CHANCE THAT ATTAINABLE MARGIN WILL COVER FULL COSTS OF NEW BUILDS

40 37 41 44

26 219

Nuclear Lignite Hard Coal CCGT

CO2 cost

Full-costw/o CO2

Prices covered full costs of new builds*:EUR/MWh, 2020

* in West Europe (WACC 7%)

63

53

Excepting Lignite in benchmarking allocation scheme the Nukes have the lowest full cost

No risk regarding next CO2 allowances allocation scheme

62

40

Economies

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CO2 PRODUCTION

0,37

0,2

0,02 0,02 0,004

0,95

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1

Coal

Gas

Solar

Wind

Nuclear

Hydro

Nuclear push down CO2 emission

significantly

* Direct and indirect CO2 production

Source : Öko-Institut Darmstadt

CO

2 [

kg C

O2/

kWh]

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ČEZ nuclear experience

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Temelín2x1000 MW VVER 1000 (PWR)Commissioned 2002

Dukovany 4x 440 MWVVER 440(PWR)Commissioned 1985

Nuclear NPP - 3760 MWel

AJ

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Dukovany has been in operation since 1985.

NPP Dukovany produced more than 14 TWh of electricity last year

We have implemented hundreds of modifications

Intermediate spend fuel storage was erected

Number of employees decreased more then twice

Plant operates on increased power – nominal electrical output is 460 MW today

We have long experience with safe and reliable operation of nuclear power plants.

ČEZ nuclear experienceDukovany

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ČEZ nuclear experienceTemelín

Temelín has been in operation since 2003 – the last NPP successfully commissioned in Europe.

NPP produced more than 10 TWh of electricity last year.

We are preparing dry spend fuel storage

We are working on stabilization of operation

We have experience with construction and commissioning of nuclear power plants.

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Political situation in the Czech Republic

We carried out several studies and analysis including studies about impact on environment, feasibility study, transport study,..

Our advantage : utilization of the Temelin construction experience

ČEZ nuclear experience – new build

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Schedule

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How to start with new NPP preparation and construction

Strong support from the government

Public acceptance

Nuclear legislation („Atomic law“ + regulations)

Knowledgeable and capable nuclear regulatory authority

Educational system ( including teachers) – job preparation, high schools, universities, training capacities

Industrial and research capacities

Strong financing for the long time

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How to start with new NPP preparation and construction

Ability to say what you want to the vendors

Ability to check the vendors offers and designs

Territorial plans

Agreement of municipalities – system of benefits

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How to start with new NPP preparation and construction

Site – many conditions:

Earthquake

Transport – routes, railways, harbors,..

Cooling water

Connections to the electrical grid

Infrastructure

Density of population

….

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Conclusions

ČEZ is financially strong, continuously growing electrical utility

We are ready to start with preparation of new nuclear build in our country and also abroad

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Thank you for your attentionivo.kouklik@cez.cz