[Why&Next] '30 Trillion Jackpot' Czech Nuclear Power Plant Contract Battle... Korea "Matching Price and Schedule" vs France "We Are One EU Family"

Preferred Negotiation Candidates Selected for June-July
Korean Construction Costs Half of France's

South Korea is making a final all-out effort to win the Czech nuclear power plant project, estimated to be worth a total of 30 trillion won. If successful, it will secure an overseas nuclear power plant construction project for the first time in 15 years since the Barakah nuclear power plant in the United Arab Emirates (UAE) in 2009. South Korea is emphasizing price competitiveness and on-time construction within the set budget, while its competitor France is leveraging its nuclear power plant construction experience within Europe and the EU nuclear alliance as an EU member state.

According to the government and Korea Hydro & Nuclear Power on the 24th, the preferred bidder for the Czech nuclear power plant project will be selected as early as the end of next month.

The Czech new nuclear power plant construction project involves building up to four nuclear reactors with a capacity of less than 1200 MW in the Dukovany and Temelin regions. Initially, the Czech government planned to build one reactor (Dukovany Unit 5) in the Dukovany area, but in January this year, it expanded the construction scale to a total of four units by adding Dukovany Unit 6 and Temelin Units 3 and 4. Accordingly, the project cost has increased significantly from 8 trillion won to about 30 trillion won.

Originally, five countries including South Korea, China, Russia, the United States, and France were expected to participate in the Czech nuclear power plant bidding. However, in 2021, the Czech government excluded China and Russia from the bidding due to security concerns. Earlier this year, the U.S. company Westinghouse was also eliminated after failing to submit a legally binding proposal, leaving South Korea and France as the final two contenders.

Korea Hydro & Nuclear Power (KHNP) proposed supplying the APR-1000, a reduced-capacity version of the APR-1400 developed independently and supplied to Barakah, tailored to meet the Czech requirement of "less than 1200 MW." The French Electric Utility Company (EDF) is competing with the EPR-1200, based on the EPR-1600.

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South Korea's greatest strengths are price and on-time construction, i.e., "On time On budget." According to the World Nuclear Association (WNA), as of 2021, South Korea's nuclear power plant construction cost was $3,571 per kW, about half that of France ($7,931). Professor Jeong Dong-wook of the Department of Energy Systems Engineering at Chung-Ang University explained, "The construction cost of the EPR-1600 model applied in Finland and France is about 12 to 13.5 billion euros (approximately 17.75 to 19.96 trillion won) per unit, which is about three times more expensive than Korea's APR-1400. The EPR-1200 proposed by EDF to the Czech Republic this time has not significantly reduced costs, so KHNP is far ahead in price competitiveness." In particular, South Korea has proven its ability to construct the UAE nuclear power plant at half the cost of France and the U.S. within the set deadline.

France is pursuing an "EU strategy," saying, "We cannot give up the European nuclear power market." In March this year, 12 member countries, including the Czech Republic, formed a pro-nuclear expansion camp centered on France and issued a statement to strengthen EU-level nuclear policies. Last month, An Deok-geun, Minister of Trade, Industry and Energy, said, "France, as a fellow European country, is pushing a strategy called 'we are one' by forming a European nuclear alliance. Although we are politically and diplomatically at a disadvantage, South Korea is also making every effort by emphasizing strengths such as nuclear power plant construction capabilities, so we have to wait and see the results."

EDF also emphasizes its advantage in licensing within Europe. Just as the EPR reactors built in its home country and Finland smoothly passed European approval procedures, the EPR-1200 is expected to receive rapid approval.

“Team Korea,” composed of the Ministry of Trade, Industry and Energy, KHNP, Korea Electric Power Technology, Doosan Enerbility, and Daewoo Engineering & Construction, plans to devote all efforts to the bidding competition until the preferred bidder is selected based on Czech information. On the 13th, Park Jung-won, chairman of the Doosan Group, personally visited the Czech Republic to hold the "Doosan Partnership Day" and discuss cooperation plans for the Czech nuclear power plant project. At the end of this month, Baek Jeong-wan, CEO of Daewoo Engineering & Construction, which is to take charge of construction, will head to the Czech Republic to preside over the "Korea-Czech Nuclear Power Plant Construction Forum."

The Czech utility company, the project owner, will evaluate the bid documents from KHNP and EDF and submit a review report to the government. Based on this, the Czech government is expected to select the preferred bidder between late June and mid-July. The main contract is scheduled to be signed in March next year, with construction starting in 2029 and commercial operation targeted for 2036.