PRAGUE, Nov 26 (Reuters) - Energy group Sev.en plans to cease operations at its Czech coal-fired power plants in December 2026 or by March 2027 at the latest, it said on Wednesday, taking 2,400 megawatts of coal capacity off the grid due to lack of profitability.

Sev.en, owned by billionaire Czech investor Pavel Tykac, said the outlook for prices of electricity and rising carbon permit costs pointed to continuing losses at the plants.

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The affected operations are major, decades-old lignite coal-fired plants at Chvaletice, Pocerady and Kladno, where it also supplies heating to the town.

Sev.en said its decision has also been based on the unclear outlook for gas prices this winter and the pace of connecting more renewable energy sources.

Rising supply from renewable resources has forced the plants to operate fewer hours per year, which reduces emissions but raises the burden of their fixed costs.

Like the rest of the European Union, the Czech Republic is phasing out coal. The country's largest electricity producer CEZ (CEZP.PR) , opens new tab plans to reduce the share of its output from coal plants to 9% from the current 30% by 2030.

Last year, Sev.en's plants, which include the smaller Teplarna Zlin, supplied 7.6 TWh to the grid, down from 8.8 TWh in 2023, according to its annual report.

The Czech Republic's production was 69 TWh last year and consumption reached 58 TWh, according to energy regulator ERU.

Tykac has in the past flagged Sev.en may close the plants unless the government steps in with a subsidy scheme if it determines the capacity is needed for operating the national power grid.

Network operator CEPS will have time to respond to Sev.en's announcement and take action if needed.

There was no immediate response to Reuters questions from CEPS and the industry ministry on Wednesday.

https://www.reuters.com/business/energy/czech-seven-shut-three-major-coal-fired-power-plants-by-march-2027-2025-11-26/