Nuclear plant deal might be delayed until after Czech general election, Prime Minister Fiala warns

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Nuclear plant deal might be delayed until after Czech general election, Prime Minister Fiala warns

Published: 28 May. 2025, 17:46 Updated: 28 May. 2025, 18:06

Audio report: written by reporters, read by AI

Czech Prime Minister Petr Fiala addresses a joint press conference with Ukrainian Prime Minister Denys Shmyhal, not pictured, in Uzhhorod, Ukraine, on May 20. [EPA/YONHAP]

Czech Prime Minister Petr Fiala said Tuesday that a contract with Korea’s Korea Hydro & Nuclear Power (KHNP) to build a nuclear power plant might be delayed until after the country’s general elections in October.

His comments come after a Czech court halted the deal and just months before the current administration’s term ends, spurring uncertainty for Korea's nuclear export.

"It does not depend on us, it is now in the hands of the courts,” Fiala said when asked by local media about the likelihood of signing the contract before the election. He said the cabinet had fulfilled its part to complete the deal.

He added that it was uncertain whether the deal could be finalized during his term.

The Czech government had initially planned to sign the contract with KHNP on May 7. But French energy giant Électricité de France (EDF), which lost the bid, filed an injunction in a Czech court alleging procedural irregularities. The court granted the request, suspending the agreement.

Both KHNP and Elektrarna Dukovany II (EDU II), the state-owned company overseeing the nuclear project, have appealed the injunction to the Czech Supreme Court.

In a separate appeal made Wednesday, EDU II has also asked the Regional Court in Brno, which issued the injunction, to reverse its decision.

Industry observers say the court could move quickly, given concerns about financial losses and long-term energy supply disruptions if the project is delayed.

The proposed site for a new nuclear power plant in Dukovany, Czech Republic [DAEWOO E&C]

“If the whole current situation continues to drag on for weeks and months, it will get worse and the risks will increase,” Fiala said.

Those risks include not only potential setbacks to the government's plan to have the new reactor operational by 2036, but also the possibility that a new administration after the October elections may not follow through with the deal.

In the Czech Republic’s parliamentary system, elections directly affect the composition of the next government and the prime minister.

Karel Havlicek, a deputy leader of the opposition ANO party and former industry and trade minister, blamed the current government for mishandling the process.

“It completely botched the signing process,” he said. “The next government must not underestimate anything.”

He also noted that he is already negotiating with all stakeholders, including KHNP, EDF and the European Commission.

EDF has also lodged a complaint with the European Commission, accusing KHNP of violating the European Union’s Foreign Subsidies Regulation.

Despite the legal and political turmoil, Czech authorities have maintained that KHNP’s proposal remains the strongest among the bids. The government has preapproved the contract and intends to move forward with the signing as soon as the court lifts the injunction.

A KHNP official said the Czech prime minister was simply acknowledging that the timing of the contract hinges on the local court’s decision.

"We believe the Czech nuclear contract will proceed as originally planned," an official at Korea’s Ministry of Trade, Industry and Energy said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY IM SOUNG-BIN [[email protected]]