Czech Republic’s $18 billion nuclear power deal with South Korea has been blocked by a court following a legal challenge from France’s EDF, throwing the nation’s energy plans into uncertainty.
At a Glance
- A Czech court has blocked a multi-billion-dollar nuclear plant contract between Prague and South Korea’s Korea Hydro & Nuclear Power (KHNP)
- France’s EDF filed a lawsuit after their initial appeal was rejected by Czech antitrust authorities
- The contract for two new nuclear units at Dukovany would be worth approximately $18 billion
- Czech Republic relies on nuclear power for 40% of its electricity with plans to increase to 50% by 2050
- Construction was planned to begin in 2029 with the first reactor operational by 2036
Court Ruling Halts Major Nuclear Deal
A regional court in Brno has issued a ruling that prevents the Czech Republic from finalizing a contract with South Korea’s Korea Hydro & Nuclear Power (KHNP) for the expansion of the Dukovany nuclear power plant. The court’s decision comes after France’s state-owned energy company EDF filed a lawsuit challenging the tender process. The ruling effectively blocks what would have been a significant milestone in Czech-Korean energy cooperation and represents a major setback for the Czech Republic’s nuclear energy development plans.
“Issued a pre-emptive ruling banning the signature” – The regional court in the second Czech city of Brno.
KHNP had emerged as the winner of the tender process in July, with their proposal to build two nuclear units at approximately 200 billion Czech koruna ($9 billion) each. The court’s ruling aims to preserve EDF’s chance to compete for the contract if the court ultimately rules in its favor. This legal maneuver has effectively paused the entire project until the court delivers its final verdict on EDF’s claims about the transparency of the bidding process.
Competing Claims in the Tender Process
The dispute centers on allegations from EDF that the tender process lacked transparency. EDF initially filed an appeal with the Czech antitrust watchdog UOHS, which was rejected, prompting the company to take its case to court. EDF claims it can offer 60% of the contract’s value to Czech companies, which they assert is more than KHNP’s proposal. This claim represents a significant point of contention in a deal where domestic economic benefits are a major consideration.
“Provides the necessary time for a thorough assessment of any potential infringement of its rights” – EDF.
Czech authorities have strongly defended their selection process. Prime Minister Petr Fiala has stated that KHNP’s bid was superior “in all criteria assessed.” Meanwhile, the state-run CEZ group, which operates the Dukovany plant, has challenged EDF to make its bid public in a show of transparency. KHNP has acknowledged the postponement but maintained confidence in the fairness of the tender process, suggesting they expect to ultimately prevail in the contract dispute.
Strategic Implications for Czech Energy Security
The legal hurdles facing the Dukovany expansion project have significant implications for Czech energy security and independence. The Czech Republic currently relies on nuclear power for 40% of its electricity generation, with ambitious plans to increase this to 50% by 2050. This nuclear expansion is critical to the nation’s strategy for reducing dependence on fossil fuels while maintaining energy security in a region with complex geopolitical dynamics.
“Better in all criteria assessed” – Czech Prime Minister Petr Fiala.
The delay raises concerns about meeting the ambitious timeline originally set for the project. CEZ had planned to begin construction in 2029, with the first reactor entering trial operation by 2036. Any prolonged legal battle could push back these dates, potentially creating challenges for Czech energy planning. The situation is further complicated by the fact that US-based Westinghouse, which was eliminated from the tender in January 2024, also had its appeal rejected by the Czech antitrust office.
