Prague: A Czech court on Tuesday temporarily halted the government in Prague from signing a multibillion-dollar agreement with South Korea for the construction of two nuclear reactors, according to multiple reports. This development renders it highly unlikely that an official contract will be finalized this week.
According to Yonhap News Agency, a South Korean consortium led by Korea Hydro and Nuclear Power Co. (KHNP) had been scheduled to finalize the deal on Wednesday with Czech state-run energy company Elektrarna Dukovany II (EDU II), a subsidiary of the country's main electricity firm, CEZ. However, a regional court in Brno issued an injunction preventing CEZ from signing the estimated 26 trillion-won (US$18.6 billion) contract. This injunction will remain in place until a review is conducted on a legal complaint filed by France's EDF, which was a losing bidder in the tender.
Last year, EDF and another bidder, U.S.-based Westinghouse, filed complaints with the Czech Office for the Protection of Competition (UOHS) regarding the government's selection process. The UOHS rejected their appeals in October, leading EDF to escalate the case to the court. CEZ had selected KHNP to construct two 1,000-megawatt reactors in July 2024 as part of the expansion of its Dukovany Nuclear Power Plant, located about 200 kilometers south of Prague.
If the deal is finalized, it would signify South Korea's first overseas nuclear power plant project since KHNP secured the contract to build the Barakah Nuclear Power Plant in the United Arab Emirates in 2009. Following the court's decision, Czech Prime Minister Petr Fiala expressed confidence in the government's selection process. "I believe that the court is aware of all the context and risks, and will make a decision quickly," he stated in a message posted on X, formerly known as Twitter.
A South Korean delegation led by Industry Minister Ahn Duk-geun is scheduled to arrive in Prague later Tuesday. The delegation is expected to meet with the Czech prime minister for the contract signing. The Czech Republic is actively working to reduce its reliance on fossil fuels and aims to increase the share of nuclear energy, which currently accounts for about 40 percent of the country's energy supply, to over 50 percent in the coming years.
The two new reactors are intended to complement Dukovany's existing four 510-megawatt units, operational since the 1980s. The first of the new reactors is scheduled to begin trial operations by 2036, with the second expected to follow about two years later.