Nuclear plant deal unlikely before October election: Czech gov’t

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Nuclear plant deal unlikely before October election: Czech gov’t

Published: 28 May. 2025, 12:32 Updated: 28 May. 2025, 17:05

Audio report: written by reporters, read by AI

The Dukovany Nuclear Power Station in the Czech Republic [NEWS1]

The final contract signing for a new nuclear power plant project involving Korea Hydro & Nuclear Power (KHNP) is likely to be postponed until after the Czech Republic’s general election in October due to ongoing litigation, according to its government on Tuesday.

Czech Prime Minister Petr Fiala said the original plan to begin the operation of the new plant by 2036 remains intact, Reuters reported, citing Czech news agency CTK.

KHNP and its client Elektrarna Dukovany II (EDU II), a subsidiary of Czech state-run energy company CEZ, initially planned to sign the final contract for an estimated 26 trillion won ($18.6 billion) project on May 7. However, the deal was derailed after a Czech regional court accepted an injunction request from French rival bidder EDF a day earlier, after EDF lost to a Korean consortium led by KHNP in the tender process. The court prohibited finalizing the contract until it rules on the main lawsuit.

EDU II and KHNP have appealed the decision to the Czech Supreme Court.

Separately, EDU II requested on Tuesday that the regional court withdraw the injunction, arguing the ruling was made without hearing from other stakeholders and that the delay jeopardizes the timeline of the entire nuclear project.

The Czech government had intended to finalize the deal with KHNP for two reactors at the Dukovany site before entering talks to build two more at the Temelin nuclear complex.

EDF, which lost in the bidding process, filed complaints not only with the Czech court but also with the European Union (EU), alleging that KHNP violated the Foreign Subsidies Regulation, which aims to prevent foreign companies from distorting competition in the EU internal market.

The EU is reportedly considering whether to launch an investigation.

The Czech government and energy authorities previously stated their intent to seek compensation from EDF for damages caused by the contract delay, citing threats to national security and strategic interests.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]