Industry minister confident $18 billion Czech nuclear deal will proceed

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Industry minister confident $18 billion Czech nuclear deal will proceed

Published: 07 May. 2025, 09:00 Updated: 07 May. 2025, 12:41

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Minister of Trade, Industry and Energy Ahn Duk-geun departs from Terminal 1 of Incheon International Airport on May 6 to finalize a deal for a new nuclear power plant project in Dukovany, the Czech Republic. [NEWS1]

PRAGUE — Minister of Trade, Industry and Energy, Ahn Duk-geun, said Tuesday that “no big problems are anticipated” in Korea’s $18 billion nuclear power plant deal with the Czech Republic, despite a court order temporarily suspending the contract with Korea Hydro & Nuclear Power (KHNP) following a complaint from rival bidder EDF of France.

"As clearly determined twice by the competition authorities, and given the procedures followed thus far, there is no room for doubt regarding transparency, objectivity or fairness in the process," Ahn said during a press briefing in Prague, the Czech Republic, Tuesday, immediately after he arrived in the city for the deal.

"The Czech government was also skeptical about the likelihood of such a request being granted, thus invited us," Ahn said. "Aside from the formal signing, all scheduled procedures will proceed as planned, including a series of memorandums of understanding prepared in advance, with no anticipated disruptions."

The Czech Republic's Brno court on Tuesday granted an injunction filed by EDF, blocking the Czech Republic's state-run CEZ from proceeding with a project to construct two 1,063-megawatt nuclear reactors in the southeastern region of Dukovany in an estimated deal of $18 billion, as Korea’s largest-ever nuclear export in its history. The construction was scheduled to break ground in 2029, with completion slated for 2036.

A KHNP-led consortium was selected as the preferred bidder in July last year, beating EDF, after the Paris-based electric company filed a complaint to the Office for the Protection of Competition (UOHS), the Czech anti-monopoly agency, pinpointing an unfair process in the selection. The office, however, rejected the case and subsequent appealed on April 24, and announced that the final deal with KHNP would be concluded six days later.

Four of the cooling towers of the Dukovany nuclear power plant rise high above the natural surroundings of Dukovany, Czech Republic. [AP/YONHAP]

The EDF on May 2 filed a lawsuit and injunction with the Regional Court in Brno, contending that the competition authority's decision was unfair. The deal cannot now be signed until the court passes a verdict on the case.

"UOHS already made judgments; there won't be any problems," Ahn said. "The deal signing may face a delay, but not excessively. The Czech government won't make that happen, considering its energy crises."

Ahn also said that CEZ is "currently undergoing a detailed legal review and an appeal is likely to follow."

KHNP immediately issued a statement saying that it "fully respects the Czech Republic’s legal procedures," but added that it has "deep regret over the competitor’s continued attempts to undermine the outcome of the tender."

If the deal were undertaken as planned, it could be Korea's first-ever nuclear power plant export to Europe, currently dominated by France. KHNP went through a series of repeated challenges from contenders. Westinghouse, a major U.S. nuclear power plant supplier, filed an intellectual property complaint against KHNP in 2022, arguing that its nuclear power plant model APR1400 is based on licensed Westinghouse intellectual properties. The two reached a settlement in January.

"Despite unforeseen challenges, the deal will be concluded swiftly, and we will make it serve as a catalyst to further enhance our competitiveness and capabilities in Korea’s nuclear power industry."

CEZ plans to hold a press briefing on Wednesday morning to announce its position on the court's ruling and the timeline for appeals, along with the Czech Republic government's official stances.

BY SARAH CHEA [[email protected]]