Hi Investment & Securities analyzed on the 27th that KEPCO Engineering & Construction will benefit as the possibility of winning orders in countries such as the Czech Republic and the UAE increases due to the expansion of global nuclear power plants and the rise in new nuclear power plant construction plans.
KEPCO Engineering & Construction is a subsidiary of Korea Electric Power Corporation (KEPCO) and exclusively handles the design and engineering of domestic nuclear power plants, holding a dominant position in the field of nuclear power plant design engineering in South Korea.
Starting with the design of Hanbit Units 3 and 4 nuclear power plants, KEPCO Engineering & Construction independently carried out the design work for multiple units, standardizing the design of 1000MW-class nuclear power plants in the Korean style, and later developed the APR1400, a 1400MW-class advanced pressurized water reactor design technology with international competitiveness.
Researcher Lee Sang-heon of Hi Investment & Securities stated in a report on the same day, “New nuclear power plant construction plans are becoming visible in global markets including the Czech Republic, Poland, the UK, the UAE, T?rkiye, Saudi Arabia, Sweden, and the Netherlands,” adding, “In the case of the Czech Republic, a project is underway to build up to four 1200MW nuclear reactors, two each at Dukovany and Temelin, with an estimated project cost reaching 30 trillion KRW.”
He explained, “By June, the Czech Electricity Company (CEZ) will evaluate the final bids submitted by Korea Hydro & Nuclear Power (KHNP) and France’s EDF, and by July, the preferred bidder for the new nuclear power plant project will be announced,” adding, “Korea has an advantage over France not only in price and quality but also in delivery compliance competitiveness, so if Korea wins the Czech nuclear power plant order, it will serve as a foothold for the entry of Korean-style nuclear power plants into Europe and the expansion of exports.”
He further analyzed, “Following the Barakah nuclear power plants Units 1 to 4 in the UAE, which were won by the KEPCO consortium in 2009, it is expected that projects for Units 5 and 6 will be pursued, and if these are also secured, benefits are anticipated.”
Additionally, he noted, “The 11th Basic Plan for Electricity Supply and Demand is scheduled to be applied over 15 years from 2024 to 2038, with a draft to be announced soon and final confirmation in the second half of the year,” forecasting, “This 11th Basic Plan will likely include key elements such as upward revisions of electricity demand forecasts and an increase in the share of nuclear power including new nuclear power plant expansions.”
He added, “Above all, the number of newly constructed nuclear power plants, including large-scale plants and SMRs, will be specified,” concluding, “The expansion of the nuclear power market due to such new nuclear power plant constructions is expected to benefit KEPCO Engineering & Construction.”
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