How can the Czech Republic pay for new nuclear?

Plans for a new nuclear power plant in Czech Republic are currently on the brink of collapse.  Jan Ondřich explains the remaining options. The Czech government still remains hopeful that it can start construction of a new nuclear power plant. But the Czech utility CEZ, which is listed on Prague stock exchange and in which the government holds 70%, will not be able to build such a plant without some form of a state guarantee – the investment cost may easily reach a level of current market capitalization of the whole company, that is some USD 200 million. The government has considered various options, such as funding with the state budget, or the British-style contract for difference. This style of contract, which stipulates that the seller pays the buyer the difference between the value of an asset and the value at its contract time, means that when the market price for electricity generated by a CFD Generator (the reference price) is below the Strike Price set out in the contract, payments are made by the …