(Bloomberg) -- The Czech Republic moved closer to building a nuclear reactor for at least $7 billion as part of efforts to wean itself off coal.

Prime Minister Petr Fiala’s administration on Thursday gave majority state-owned utility CEZ a formal go-ahead to start looking for the supplier of a new unit at its Soviet-era Dukovany atomic power plant. The company expects to receive the first round of bids by the end of November, present the results to the government in December 2023 and sign a contract with the winner in 2024.

The landlocked country with limited options for wind and solar power sees nuclear energy as necessary to give up coal and meet the European Union’s environmental goals. Surging electricity prices and the continent’s push to become independent of Russian oil and gas have further boosted the case for the investment in new reactors.

“Energy independence and the right mix of energy sources is proving to be particularly crucial at a time when Russia is invading Ukraine and in fact economically attacking all of Europe,” Fiala told reporters.

After years of delays and disputes over who should foot the bill, the Czech government has pledged to provide the financing and to buy the output at a fixed price once the facility is completed in 2036. That has eased earlier concerns of CEZ shareholders that they will have to shoulder the cost, and the stock has rallied 59% over the past year.

Likely bidders for the project include Electricite de France SA, Westinghouse Corp. and Korea Hydro and Nuclear Power Corp., after the country excluded Russian and Chinese companies over national-security reasons.

“The terms of the tender have been set in such a way that states posing a security risk, like Putin’s Russia, cannot participate in the project,” Fiala said.

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