The Czech government can lend majority state-owned utility ČEZ money for the planned expansion at its Dukovany nuclear power station, government and company officials said on Thursday, according to Reuters.

The Czech state has long been in talks with ČEZ, in which it owns a 70% stake, about expanding its nuclear fleet, but costs and financing have been sticking points. According to Reuters, state and company officials agreed a state loan is possible for construction of a new plant, pending European Commission approval.

ČEZ officials said last month that the Czech government had approved agreements with ČEZ setting out a framework for building a new nuclear plant at Dukovany to come online in 2036.

The government has estimated a single new unit of about 1,200 MW would produce enough electricity to cover a tenth of annual consumption and would cost from €5.1bn-€5.9bn.