Electricity producer CEZ, one of the largest companies in the power sector operating in several Central and South-eastern European countries published last week its financial report for 2023. Despite challenging market conditions, mainly due to decreased power prices, CEZ has managed to report robust financial results for the full year of 2023, surprising expectations.

According to the document, the energy conglomerate has put aside 13,2 million EUAs for 2024 compliance obligations, “including unused emission allowances for 2023 generation in the amount of 1,4 million EUAs.” The average purchasing price was €78.

The company has also hedged around 6,1 million carbon allowances needed to comply with the EU ETS in 2025 at an average price of €96 and 2,1 million carbon allowances for 2026 at an average price of €97. 

CEZ reported that fossil fuel generation reached just 17,5 TWh in 2023, a 13% decline compared to the previous year due to “the deterioration in market operating conditions.” Meanwhile, the group produced 34 TWh from nuclear and renewable sources, remaining at the same level as in 2022.

“The future of the Czech energy sector will be based on renewable sources and safe nuclear power. Already now 74% of our profits are generated by emission-free activities. We are changing rapidly; twenty years ago coal was still the main source of profit,” stated Daniel Benes, Chairman of the Board of Directors and CEO of CEZ.