Czech Sev.en to close three large coal-fired power plants by spring 2027

The Sev.en energy group plans to shut down its three Czech coal-fired power plants in December 2026 or no later than March 2027, according to a company statement.

The announcement concerns the thermal power plants in Chvaletice, Počerady, and Kladno.

The economic situation in the traditional energy sector is very unfavorable for all energy producers using domestic brown coal, the company notes. The outlook for market prices for electricity and emission allowances for 2026 and beyond points to a clear economic downturn and the threat of ongoing losses.

Sev.en also stated that its decision is based on uncertainty regarding the dynamics of emission permit prices from January 2026 and the cost of gas in the current winter period, as well as the pace of renewable energy implementation.

By law, the company must give at least 11 months’ notice of such steps, and this announcement was made early to give the government enough time to respond. Sev.en notes that their business has “lost its economic sense.” The company expects to end the current year with a small profit, and 2026 may also be smooth sailing, as the group managed to sell electricity for certain months. However, the company’s outlook for 2027 is bleak, among other things, due to the cost of emission allowances.

It should be recalled that Germany is reducing its plans for the development of gas energy capacities to 10 GW, which is about half of what was planned at the beginning of the year. In this way, the country is seeking to strike a balance between decarbonization and support for renewable energy sources.