Czech energy market consolidated by three-way deals

Czech power giant CEZ announced a series of deals on Wednesday which will pave the way for it to achieve its cogeneration and gas-fired power plant ambitions in the country. The deals involve CEZ along with cash-rich Czech energy holding EPH and the country’s biggest heating company Dalkia Czech Republic, a unit of French-based Dalkia. Under the first deal, CEZ said that it will offload one of its biggest brown-coal fuelled power plants, Chvaletice, to EPH for an undisclosed sum. As part of the price for the 800 MW capacity plant in Eastern Bohemia, CEZ will take over EPH heat distribution facilities serving the northern towns of Most and Litvinov. Under a second deal, EPH has agreed with Dalkia Czech Republic to take a preliminary 5.0% shareholding in the company with an option for a further 5.0% on top of that at a later date.

Author: Chris Johnstone