EU approves Czech state aid for nuclear power plant construction

A view shows the embassy of the Czech Republic in Moscow

BRUSSELS (Reuters) - The European Commission said on Tuesday it had approved state aid offered by the Czech Republic for the construction of a nuclear power plant.

The Commission said the Czech government had offered remedies to make sure the aid was proportionate and would not unduly distort the functioning of the electricity market.

The 1,200 megawatt facility to be built at the site of an existing nuclear power plant in Dukovany will receive a top-up for 40 years if power prices are lower than an agreed level, although will have to pay back if they are above.

To prevent overcompensation, additional gains from the project will be shared with the Czech government during its entire operational lifetime, from 2036 to 2096.

(Reporting by Bart Meijer)