The company, owned by Czech investor Pavel Tyka?, operates large lignite-fired facilities at Chvaletice, Po?erady, and Kladno. The Kladno plant also provides district heating to the local community.
Sev.en stated that continued operation is not viable because of low electricity prices combined with increasing costs for carbon emission allowances. Additional factors include uncertainty over winter gas prices and the slower-than-expected integration of new renewable energy projects.
Increased generation from renewable sources has reduced the annual operating hours of the coal plants. While this lowers emissions, it raises the relative weight of fixed costs and further affects profitability.
The Czech Republic, in line with European Union objectives, is gradually reducing coal use in electricity production. The country's main utility, ?EZ, intends to decrease the coal share of its generation from the current 30 percent to 9 percent by 2030.
In 2024, Sev.en's coal plants, including the smaller Teplárna Zlín facility, delivered 7.6 terawatt-hours of electricity, compared with 8.8 TWh in 2023. Nationwide, the Czech Republic produced 69 TWh last year while consuming 58 TWh, according to data from energy regulator ERÚ.
In previous statements, Pavel Tyka? had indicated that the plants could remain available if authorities introduced support measures to maintain reserve capacity for grid stability. Following Wednesday's announcement, transmission system operator ?EPS will have sufficient time to evaluate the impact and implement any necessary adjustments.
No immediate comment was available from ?EPS or the Ministry of Industry and Trade in response to the planned closures.
