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Dukovany Inks KHNP Deal Despite EDF Action

2025-05-09 14:22

Wedoany.com Report-May 9, Elektrárny Dukovany II, a subsidiary of ČEZ, has signed a contract with Korea Hydro & Nuclear Power (KHNP) to construct up to four new nuclear units at the Dukovany and Temelín sites in the Czech Republic. In July 2024, a KHNP-led South Korean consortium was selected as the preferred bidder for two confirmed reactors at Dukovany, with an estimated cost of CZK200bn ($9bn) per unit. The first reactor is slated for completion in 2036.

KHNP secured the tender over competitors US Westinghouse and France’s EDF. Both companies initially appealed to the Czech Republic’s competition authority (UOHS), but Westinghouse withdrew its appeal, and EDF’s was rejected in April. EDF then filed a complaint with the Regional Court in Brno, which issued a ruling preventing ČEZ from signing the contract until the complaint is resolved. Despite this, Czech Prime Minister Petr Fiala approved the contract in principle, stating: “The Czech Republic must be as energy self-sufficient as possible. In the tender, we mainly pursued three goals – for the new units to produce energy at the lowest possible price; for Czech companies to be involved in the construction itself as widely as possible; and we also required a guarantee that the completion will go quickly and reliably. KHNP’s offer was the best in every way.”

Finance Minister Zbyněk Stanjura added: “The selection procedure provided us with the opportunity to compare different offers and thus achieve the most advantageous conditions for the Czech Republic.” Elektrárny Dukovany II plans to appeal the Brno court’s decision to the Supreme Administrative Court, asserting that the tender process was transparent and compliant with regulations.

To prepare for progress post-court ruling, Czech and Korean representatives signed 12 preliminary contracts, including a framework agreement for turbine hall supply and a steam turbine contract between Škoda Power, KHNP, and Doosan. Additional agreements involved Czech firms Škoda JS, ÚJV Řež, Metrostav DIZ, ZAT, OSC, I&C Energo, and NUVIA, alongside a construction memorandum with Korea’s Daewoo. Minister of Industry & Trade Lukáš Vlček stated: “It is important that we do everything we can to continue immediately after the court’s decision.”

An Agreement on Cooperation in the Peaceful Use of Nuclear Energy was also signed, focusing on nuclear safety, licensing, and research, with further memoranda covering batteries, automotive, and robotics sectors. KHNP affirmed its commitment to Czech legal processes, expressing confidence in the fairness of the tender. The project strengthens Czech-Korean collaboration, aiming to enhance energy reliability through advanced nuclear infrastructure.

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