Prague: It was an unexpected turn of events for both the South Korean delegation visiting the Czech Republic and officials in Prague when news broke just a day before the planned signing of a long-anticipated multibillion-dollar nuclear power plant deal in the European country.
According to Yonhap News Agency, just hours before the South Korean delegation arrived in Prague to finalize the estimated 26 trillion-won (US$18.6 billion) project to build two nuclear reactors at the Dukovany nuclear power plant, a Czech regional court had issued an injunction temporarily halting the deal. The legal challenge was filed by French energy firm EDF, a losing bidder in the tender process, effectively putting the brakes on what would have been South Korea's first overseas nuclear plant contract in 16 years.
For South Korea, the deal -- led by state-run Korea Hydro and Nuclear Power Co. (KHNP) -- meant more than a commercial victory. It marked the country's long-awaited return to the global nuclear energy stage, following a 2009 win by a KHNP-led consortium to build the Barakah nuclear power plant in the United Arab Emirates. For the Czech Republic, the project not only represents the largest public procurement in history but also a critical pillar in its strategy to transition away from coal and toward more reliable and cost-effective energy sources through nuclear power.
"The Czech government appeared more stunned by the injunction than we were," said a senior South Korean official, speaking on condition of anonymity. "They clearly did not anticipate such a decision."
Daniel Benes, CEO of the Czech state-run energy company CEZ, personally apologized to the South Korean delegation and pledged that a motion to dismiss the injunction would be filed within the week. "Given the importance of the project, we expect the court to make a swift decision," Benes said at an abruptly arranged press conference.
Doosan Skoda Power, Doosan Enerbility's Czech subsidiary and a member of the KHNP-led consortium, is also positioned to play a major role in the Dukovany project. Based in Plzen and founded in 1869, the company was once a symbol of Czech industrial strength. It was acquired by Doosan in 2009 in a deal worth approximately 660 billion won. Since then, it has become a notable example of successful cross-border industrial cooperation.
"In addition to manufacturing new steam turbines, we are planning to expand our turbine service business soon," said Lim Young-ki, CEO of Doosan Skoda Power. "Service operations offer the advantage of stable revenue and high profitability, which add long-term value to our presence in the region." The company noted that turbine maintenance services require both significant time and advanced technological capabilities -- factors that often result in long-term partnerships between service providers and clients.
While last week's Czech court ruling has introduced a degree of legal uncertainty, industry experts say the overall momentum toward a cleaner nuclear-powered energy future remains undeterred. "As the Czech Republic also must phase out coal-fired power plants within a set timeframe to achieve carbon neutrality, there is limited time to secure alternative sources of electricity," said KHNP President and CEO Whang Joo-ho. He added that such a trend is especially evident across Europe, where nuclear energy is regaining importance as a reliable and sustainable energy source.
Observers emphasize that maintaining trust and open communication between South Korea and the Czech Republic will be vital, not only to resolve the current delay but also to ensure long-term collaboration in clean energy development across Europe and beyond.