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Czech Republic to appeal France's injunction, adamant Korea the right choice for nuclear plant

Published: 07 May. 2025, 18:58 Updated: 08 May. 2025, 05:57

SARAH CHEA
[email protected]

CEZ CEO Daniel Benes speaks about a delay in the signing of an $18 billion contract with Korea Hydro & Nuclear Power during a press briefing in Prague on May 7. [JOINT PRESS CORPS]

PRAGUE — The Czech Republic's state-run CEZ says its selection of Korea for a nuclear power plant deal worth around $18 billion was “fair and transparent” and will file an appeal with the higher administrative court to neutralize the lower court’s decision to block it from finalizing the deal with Korea Hydro & Nuclear Power (KHNP) on an injunction filed by France's state-run EDF.

It didn't give a specific timeline about the resumption of the process, but vowed a timely conclusion considering the current energy crisis the Czech Republic is facing with the Ukraine-Russia war.

“We will file a motion to dismiss EDF’s injunction next week, and I believe the court will rule in our favor swiftly, considering the gravity of the case,” CEZ CEO Daniel Benes said during a press briefing in Prague on Wednesday.

“Our decision to select KHNP was clear, fair, and transparent and the whole process has been validated through multiple series of evaluations by experts,” Beneš said.

The head also added that the decision was “unexpected and unjustified measures” that worsen the Czech energy crisis with no gains.

CEZ was initially set to seal the deal with a KHNP-led consortium to construct two 1,063-megawatt nuclear reactors in the southeastern region of Dukovany on Wednesday. However, the schedule has been postponed indefinitely after the Regional Court in Brno granted an injunction filed by EDF on Tuesday and ordered all processes to be halted right away.

EDF was one of the final bidders for the project along with KHNP, but was passed over by CEZ last year due to its lack of capabilities in meeting construction deadlines and budget overruns. The Paris-based electric company once filed a complaint to the Office for the Protection of Competition, the Czech anti-monopoly agency, pinpointing an unfair process in the selection, where the office, however, rejected the case. It filed a lawsuit and injunction with the Regional Court in Brno on May 2, contending that the competition authority's decision was unfair. The deal now cannot be signed until the court issues a verdict.

“We chose KHNP for clear reasons; We agreed to a supply of 90 euros per megawatt, while EDF currently offers it at some 149 euros,” said Tomas Pleskac, head of new business at CEZ.

“We gave plenty of time and chances for EDF to revise their proposals and explained the reasons why they were not our top choice, but they refused to present a revision or communicate with us,” he added.

Executives of the Czech Republic's state-run CEZ, including CEO Daniel Benes, second from left, speak about a delay in the signing of an $18 billion contract with Korea Hydro & Nuclear Power during a press briefing in Prague on May 7. [JOINT PRESS CORPS]

Benes also pinpointed his commitment to continue its business with KHNP even if the court rules differently, and has “no further room to negotiate with EDF.”

As the largest-ever nuclear export in Korea's history, the Dukovany project could be the country's first-ever nuclear power plant export to Europe, currently dominated by France. Construction was scheduled to break ground in 2029, with completion slated for 2036.

BY SARAH CHEA,JOINT PRESS CORPS [[email protected]]