This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Unit: USD thousands

 

2015

2016

2017

2018 (Estimated)

Total Local Production

16,765,890

16,950,000

17,200,000

17,500,000

Total Exports

7,119,341

8,988,000

9,200,000

9,400,000

Total Imports

5,988,465

3,824,000

4,300,000

4,500,000

Imports from the U.S.
 

320,200

310,300

340,000

350,000

Total Market Size

15,635,014

11,786,000

12,300,000

12,600,000

Exchange Rates

24.203

25.045

20.884

20.158

Sources: Ministry of Industry and Trade; Czech Energy Works (CEZ); Czech Energy Transmission System (CEPS); Czech Statistical Office. Unofficial estimates products incl. 8401-8416. Exchange rates: U.S. Treasury Department.

In 2017, Czech gross electricity production reached 87 TWh (terawatt-hours), while domestic consumption was around 74 TWh. The Czech energy mix was made up of 57.4 percent fossil fuels (44 percent lignite, 5.5 percent natural gas, 5.4 percent bituminous coal, etc.), 35 percent nuclear power, and 7.6 percent renewable energies (3.6 percent biomass, 2.1 percent solar, 1.4 percent water, 0.45 percent wind energy, etc.). The country’s 13 TWh surplus was exported to neighboring countries. As such, the Czech Republic is the ninth largest electricity exporter in the world and the third-largest in the EU.
 

Leading Sub-Sector

Coal still provides the majority of fuel used in Czech power generation. While Czech coal production has declined from 13 million tons in 2007 to 8 million tons in 2017, coal imports are increasing, especially from Poland and  Germany.  Some coal imports are sourced from the United States. The Czech Republic has no significant production of natural gas or oil and is fully dependent on gas and oil imports. The country is integrated into regional transmission systems and can purchase oil and gas from different countries based upon on market prices in Rotterdam or elsewhere. The majority of oil and gas is imported via Germany. The Czech Republic has two nuclear power plants at Dukovany and Temelin, which delivered over 28 TWh of electricity in 2017. Both plants were designed and built and designed in the 1980s and rely on Soviet-era technology. Russia provides fuel for both plants.  The reactors at Dukovany are expected to remain in operation until 2035, and Temelin’s reactors until the 2040s, but all will ultimately need to be replaced.

The Czech government has placed a priority on nuclear power. The country’s June 2015 Czech National Action Plan for Nuclear Energy states that nuclear energy should constitute about 50 percent of the Czech energy mix by 2040. CEZ, the state-controlled operator of the current reactors, launched a tender for new reactors in 2009, but cancelled it in 2014. The Ministry of Industry and Trade (MOIT) later invited nine companies/consortia to discuss their interest in participating in a procurement for the nuclear power plant at Dukovany. In the fall of 2016, six companies/consortia responded to a Request for Information (RFI) issued by MOIT. The companies/consortia were Westinghouse, Rosatom (Russia), KHNP (Korea), EDF (France), CGN (China), and Atmea (Mitsubishi Heavy Industries/EDF).  MOIT met with each company to discuss their submissions in late January and early February 2017. Since that time progress has been stalled due to financing issues and a delay in the confirmation of a new government after Parliamentary elections in October 2017.

Despite strong and long-standing government and public support for nuclear power, the strategy of building a new unit at the Dukovany Nuclear Power Plant has not yet translated into an offer of state financial support for the project. The Czech Republic sees the expansion of nuclear power production as an energy security imperative to maintain its position as an electricity exporter, while phasing out old coal-fired power plants. The government is wary of promoting gas power plants as this could increase Czech dependency on Russian gas. The European Union and the Czech Government support conservation efforts and increasing the use of renewable energy sources. To meet EU and Czech targets, the country will likely need to invest $3 billion annually through 2030. Such funding should provide opportunities for U.S. innovative technologies and smart solutions.

Several projects are being developed to increase transmission network capacity. In order to maintain the internal stability and integrity of the distribution network, the Czech Transmission System Operator (CEPS) has been investing approximately $45 million annually to strengthen both cross-border transmission capabilities and its own domestic grid. There is an ongoing replacement and expansion project for the 400 kV grid that is to be completed by 2030.

  • Power distribution networks

  • Smart grid technology

  • Energy storage technology

  • Nuclear power plant technology (if the tender is approved)


Opportunities

Event:              International Engineering Fair 2017
Dates:              October 1-5, 2018
Venue:             Brno Exhibition Center
Organizer:       BVV Trade Fairs Brno
URL:                www.bvv.cz/en/msv/
 

Web Resources

Ministry of Industry and Trade  www.mpo.cz/en/
Czech Energy Works (CEZ)  www.cez.cz/en/home.html
Czech Energy Transmission System (CEPS)  www.ceps.cz/en/homepage
Energy Regulatory Office (ERU)  www.eru.cz/cs/
U.S. Commercial Service:  Zdenek.Svoboda@trade.gov
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.