The facility, which will be in operation mainly at peak times, will be built on the premises of the brown coal-fired power plant in Pocerady.
The new steam-gas power unit is expected to be completed in 2013.
Siemens and Skoda Power will supply turbines for the new facility which is built by Skoda Praha.
The facility is described as eco-friendly owing to lower emissions and higher thermal efficiency that is around 57%, according to praguemonitor.com.
