Commission Decision (EU) 2025/429 of 30 April 2024 on the measure State aid SA.58207 (2021/N) which Czechia is planning to implement to support the construction and operation of a new nuclear power plant at the Dukovany site (notified under document C(2024) 2858)

Article 1

The aid which Czechia is planning to implement to support the construction and operation of a new nuclear power plant at the Dukovany site is compatible with the internal market.

Article 2

This Decision is addressed to the Czech Republic.

Inputs into the financial model that are subject to changes

ANNEXSupplementary provisions

ANNEX Inputs into the financial model that are subject to changes Post EPC tender Input Description of the input Sheet Row Justification for the update Development phase 2 duration Duration of phase 2 of the project’s development Inp_C 43 Updated to reflect the EPC selection outcome. The exact timing will be confirmed on the basis of the winning EPC tender. Construction period duration Duration of the construction period of the project Inp_C 47 Updated to reflect the EPC selection outcome. The exact timing will be confirmed on the basis of the winning EPC tender. Full operation period Duration of the full operation period of the project (excluding trial operations) Inp_C 51 Updated to reflect the EPC selection outcome. The exact timing will be confirmed on the basis of the winning EPC tender. Base capex – development phase 2 Cost for phase 2 of the project’s development Inp_C 59 Updated to reflect the EPC selection outcome. The costs will be confirmed on the basis of the winning EPC tender. Base capex – construction phase Cost for the construction phase of the project Inp_C 60 Updated to reflect the EPC selection outcome. The costs will be confirmed on the basis of the winning EPC tender. Gross plant capacity The gross capacity of the plant (not including any deduction for own consumption) Inp_C 112 Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. Own consumption Amount of consumption needed to operate plant Inp_C 113 Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. Trial period availability Availability of the plant during the trial period Inp_C 132 Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. Post-trial period availability Availability of the plant during full operations Inp_C 135 , 138 Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. Development phase 2 capex phasing Profile of spend during the phase 2 of the project’s development phase Inp_V 43 -48 (chosen at Inp_C 65) Updated to reflect the EPC selection outcome. The costs and exact timing will be confirmed on the basis of the winning EPC tender. Construction capex phasing Profile of spend during construction Inp_V 53 -61 (chosen at Inp_C 66) Updated to reflect the EPC selection outcome. The costs and exact timing will be confirmed on the basis of the winning EPC tender. Availability assumptions Annual profile of plant availability Inp_V 70 -82 (chosen at Inp_C 138) Updated to reflect the EPC selection outcome. The parameters affecting availability assumptions depend on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. However, the update cannot reduce the availability assumptions in the Financial Model of 15 March 2024 which are based on the plant’s designs complying with minimum European Utility Requirements for LWR Nuclear Power Plants. Variable cost Costs which are largely determined by plant output (e.g. fuel, disposal of non-radioactive waste, decom. provision) Inp_V 143 -220 (chosen at Inp_C 226) Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. Fixed cost Costs which will be incurred regardless of plant output (e.g. wages, office supplies, security) Inp_V 237 -279 (chosen at Inp_C 225) Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. Lifecycle cost Costs which will be incurred for the replacement and major refurbishment of components in the NPP Inp_V 286 -295 (chosen at Inp_C 227) Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. Operational cost Profile of values of parameter c in the remuneration formula. Inp_V 502 -506 Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. Additional costs due to load following Costs not captured in other cost items that are driven by the load following operation of the plant Inp_V 300 – 304 (chosen at Inp_C 228) Justified by EPC outcome (the costs will be specified based on the technical specification of the bidder) Original debt – Interest rate fixed/floating Determines whether the interest rate for the RFA is a fixed or floating rate Inp_C 337 Updated to reflect the terms of the RFA. Original debt – Interest rate – margin during operation The cost of debt for the RFA during the operation phase Inp_C 346 -356 Updated to reflect the terms of the RFA. Original debt – fees Fees related to securing the RFA Inp_C 359 -361 Updated to reflect the terms of the RFA. Standby debt repayment mode The principal repayment option of any standby debt Inp_C 376 Updated to reflect the terms of the RFA. Standby debt – Interest rate fixed/floating Determines whether the interest rate for the standby debt is a fixed or floating rate Inp_C 380 Updated to reflect the terms of the RFA. Standby debt – interest rate – margin during operation The cost of debt for the standby debt during the construction phase Inp_C 389 -399 Updated to reflect the terms of the RFA. Standby debt – fees Fees related to securing the standby debt Inp_C 402 -404 Updated to reflect the terms of the RFA. Fuel cost depreciation Duration of depreciation of fuel costs Inp_C 230 Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. Lifecycle cost depreciation Duration of depreciation of lifecycle costs Inp_C 233 Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. Working capital days Days between generation of electricity and payment Inp_C 251 -253 Updated to reflect the EPC selection outcome (payment terms with the EPC Supplier and with the SPV). Current assumption in the model may be updated to align with the RFA drawdown and repayment terms and any contractual provisions in the EPC contract. Start of debt active funding period Beginning of drawdown of RFA Inp_C 276 Updated to reflect the EPC selection outcome. The exact timing is tied with the start of Development Phase 2 and will be confirmed on the basis of the winning EPC tender. Dividends restriction by retained earnings Determines whether dividends are restricted by retained earnings Inp_C 455 Updated to reflect the EPC selection outcome. The EPC tender will define construction costs and therefore the debt amount and the final financing structure. Also, the form of equity could impact this input. Reference quantity (k) profile Profile of values for the k parameter in the remuneration formula Inp_V 473 -485 (chosen at Inp_C 185) Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. Alpha parameter profile Profile of values for the alpha parameter used in the remuneration formula Inp_V 489 -493 (chosen at Inp_C 187) Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications and operating costs of the plant and will be confirmed on the basis of the winning EPC tender. Load following assumptions – pasted from revenue model – % of revenue Impact on revenues which represent the benefit of load following behaviour (modelled in the revenue model) Inp_V 523 -540 (chosen at Inp_C 198) Updated to reflect the EPC selection outcome. The parameters affecting load following availability assumptions depend on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. However, the update cannot reduce the availability assumptions in the Financial Model of 15 March 2024 which are based on the plant’s designs complying with minimum European Utility Requirements for LWR Nuclear Power Plants. Load following assumptions – pasted from revenue model – % of operational cost Impact on costs which represent the benefit of load following behaviour (modelled in the revenue model) Inp_V 536 -542 (chosen at Inp_C 199 Updated to reflect the EPC selection outcome. The parameters affecting load following availability assumptions depend on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. However, the update cannot reduce the availability assumptions in the Financial Model of 15 March 2024 which are based on the plant’s designs complying with minimum European Utility Requirements for LWR Nuclear Power Plants. Target DSCR The target Debt Service Cover Ratio for total debt service Inp_C 297 , 328 -330 Justified by finalisation of RFA and EPC tender (construction costs will be confirmed through the EPC tender). Target LLCR The target loan life cover ratio for total debt service Inp_C 301 Justified by finalisation of RFA and EPC tender (construction costs will be confirmed through the EPC tender). Target PLCR The target project life cover ratio for total debt service Inp_C 304 Justified by finalisation of RFA and EPC tender (construction costs will be confirmed through the EPC tender). Original debt – debt tenor and moratorium period The total tenor of the RFA Inp_C 311 -312 Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. Original debt repayment mode The principal repayment profile for the RFA Inp_C 329 Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. Maintenance reserve account details Account used to cover a portion of anticipated maintenance over a defined forecast period Inp_C 466 -472 Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. Debt service reserve account Account used to cover a portion of anticipated debt service over a defined forecast period Inp_C 482 -502 Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. Decommissioning reserve account details Account to cover anticipated decommissioning costs Inp_C 474 -480 Updated in case of costs increases covered by Legitimate grounds. Decommissioning reserve Profile of funding requirement for the decommissioning reserve Inp_V 310 -315 (chosen at Inp_C 477) Updated in case of costs increases covered by Legitimate grounds. Original debt sculpting factor Sculpting factor of RFA principal repayment Inp_V 354 -364 (chosen at Inp_C 330) Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. Fixed debt repayments Profile of fixed debt principal repayment per year Inp_V 378 -388 (chosen at Inp_C 335 Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. Floating rate for original debt Profile of floating rate for the RFA cost of debt Inp_V 390 -397 (chosen at Inp_C 340) Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. Inflation assumptions Macroeconomic assumptions related to the chosen indexation mechanisms Inp_V 15 -24 (chosen at Inp_C 239-245) Updated to calculate nominal value of CAPEX from over-night CAPEX inputs received in EPC tender. VAT rate Rate of value add tax applicable to the project Inp_C 548 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). VAT applicability Revenue and cost items for which VAT is applicable Inp_C 544 -556 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Business tax – Maximum allowable interest as % of EBITDA Maximum allowable interest expense expressed as a % of EBITDA which is used to calculate taxable income Inp_C 562 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Business tax rate Rate of business tax applicable to the project Inp_C 576 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Capital allowance rate – general and special rate pool Rates for capital allowances Inp_C 581 -583 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Project costs taxation Determines capital allowance taxation related to specific cost items Inp_C 587 -589 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Accounting depreciation Accounting depreciation information across different asset categories Inp_V 324 -336 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Tax depreciation Tax depreciation information across different asset categories Inp_V 338 -350 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). During the PC Input Description of the input Sheet Row Justification for the update Variable cost Costs which are determined by plant output (e.g. fuel, disposal of non-radioactive waste, decom. provision) Inp_V 143 -220 (chosen at Inp_C 226) Variable cost will be updated to reflect cost overruns in Legitimate Grounds events. Variable cost which constitute 'c' will be updated periodically as part of the remuneration formula review. Fixed cost Costs which will be incurred regardless of plant output (e.g. wages, office supplies, security) Inp_V 237 -279 (chosen at Inp_C 225) Updated to reflect cost overruns in Legitimate Grounds events. Additional costs due to load following Costs not captured in other cost items that are driven by the load following operation of the plant Inp_V 297 – 306 (chosen at Inp_C 228) In case a Legitimate Grounds event leads to an overrun in additional load following costs, the input ‘additional cost due to load following’ will be updated in the financial model accordingly. Additional cost due to load following will be also revisited and updated as part of the periodic PC remuneration formula review. Overrun capex – development phase 1 Quantum of any overrun spend occurring during the first phase of development Inp_C 70 Updated to reflect cost overruns in Legitimate Grounds events. Overrun capex – development phase 2 Quantum of any overrun spend occurring during the second phase of development Inp_C 71 Updated to reflect cost overruns in Legitimate Grounds events. Overrun capex – construction phase Quantum of any overrun spend occurring during construction Inp_C 72 Updated to reflect cost overruns in Legitimate Grounds events. Percentage of overrun which is LG Proportion of overruns which are due to Legitimate Grounds issues Inp_C 77 Justified by cost overruns in Legitimate Grounds event Updated to reflect cost overruns in Legitimate Grounds events. Overrun capex – development phase 1 Profile of any overrun spend occurring during the first phase of development Inp_V 415 -420 (chosen at Inp_C 83) Updated to reflect cost overruns in Legitimate Grounds events. Overrun capex – development phase 2 Profile of any overrun spend occurring during the second phase of development Inp_V 425 -430 (chosen at Inp_C 84) Updated to reflect cost overruns in Legitimate Grounds events. Overrun capex – construction phase Profile of any overrun spend occurring during construction Inp_V 435 -440 (chosen at Inp_C 85) Justified by cost overruns in Legitimate Grounds event Updated to reflect cost overruns in Legitimate Grounds events. Inflation assumptions Macroeconomic assumptions related to the chosen indexation mechanisms Inp_V 15 -24 (chosen at Inp_C 239-245) Updates to reflect movements in the value of the respective indices over time. Update of the values will be overseen by MIT. VAT rate Rate of value-add tax applicable to the project Inp_C 548 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). VAT applicability Revenue and cost items for which VAT is applicable Inp_C 544 -556 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Business tax – Maximum allowable interest as % of EBITDA Maximum allowable interest expense expressed as a % of EBITDA which is used to calculate taxable income Inp_C 562 Justified by changes to tax law Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Business tax rate Rate of business tax applicable to the project Inp_C 576 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Project costs taxation Determines capital allowance taxation related to specific cost items Inp_C 587 -589 Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). Reference quantity (k) profile Profile of values for the k parameter used in the remuneration formula Inp_V 473 -485 (chosen at Inp_C 185) The reference quantity will be determined ex ante every five years. The value of k will change over the PC (during these periodic reviews), reflecting the expected output of the plant for each year based on maintenance activities, before the impact of any load following operation. This parameter will also be updated in case of Legitimate Grounds. Alpha parameter profile Profile of values for the alpha parameter used in the remuneration formula Inp_V 489 -493 (chosen at Inp_C 187) The alpha parameter will be determined ex ante every five years (as stated in recital 97). The alpha parameter is defined equal to f/c each year, and its value will need to be updated in line with any update to c, over the PC.