'24 Trillion Won Jackpot' Korea Wins Czech Nuclear Power Plant... Export Triumph After 15 Years (Comprehensive)

Korea Hydro & Nuclear Power Selected as 'Preferred Negotiator' Over France's EDF
Government: "Securing a Foothold for Entry into the European Market"

South Korea has secured a Czech nuclear power plant project worth 24 trillion won. This is a remarkable achievement 15 years after winning the UAE nuclear power plant project in 2009.

On the 17th (local time), the Ministry of Trade, Industry and Energy announced that the Czech government selected Korea Hydro & Nuclear Power (KHNP) as the preferred negotiator for the new nuclear power plant construction project.

This project involves constructing up to four large nuclear reactors at the Dukovany and Temel?n sites in the Czech Republic, known as the largest investment project in Czech history. According to the Czech government, the total estimated project cost is about 200 billion koruna (approximately 12 trillion won) per unit, and about 400 billion koruna (approximately 24 trillion won) for two units. The contract amount with KHNP will be finalized through future negotiations.

KHNP (main contractor) will form a 'Team Korea' with KEPCO Engineering & Construction Company (design), Doosan Enerbility (main equipment and construction), Daewoo Engineering & Construction (construction), KEPCO Nuclear Fuel (nuclear fuel), and KEPCO KPS (commissioning and maintenance) to provide an integrated supply of the entire nuclear power plant construction services including design, procurement, construction, commissioning, and nuclear fuel supply for the 1000 MW-class large nuclear power plant (APR1000). One APR1000 unit can produce about 1.2 times the annual electricity consumption of Prague (5.8 TWh) based on an 80% utilization rate.

Exterior view of the Dukovany Nuclear Power Plant operated by the Czech Republic.

◆ South Korea Introduced European-Style Nuclear Power Plants in 1982... Now Exporting Nuclear Power Plants to Europe

The selection of the preferred negotiator is regarded as a remarkable achievement 15 years after winning the UAE Barakah nuclear power plant project in 2009. A Ministry of Trade, Industry and Energy official said, "Following the Middle East, we have established a foothold to enter the European market, the birthplace of commercial nuclear power plants," emphasizing, "South Korea, which introduced European-style nuclear power plants in 1982, has now grown into a country capable of exporting nuclear power plants to Europe."

This order could serve as a strong momentum to achieve the goal of exporting 10 nuclear power plants by 2030. It demonstrated world-class competitiveness in a national all-out competition for orders and increased the possibility of subsequent third and fourth nuclear power plant exports.

The government expects that this achievement will accelerate the restoration of the nuclear power ecosystem, which the Korean government has been focusing on. If the Czech nuclear power export contract is finalized following the resumption of construction of Shin Hanul Units 3 and 4 and the ongoing procedures for the continued operation of 10 nuclear power plants, a large volume of high-quality export orders will be supplied, revitalizing the domestic nuclear power industry.

Barakah Nuclear Power Plant in the UAE. (File photo)

◆ Korean Technology and Safety Surpass France, Leader of the EU Nuclear Alliance

The Czech nuclear power plant bidding began in March 2022 with the international open competition announcement for the construction of Dukovany Unit 5 by the Czech Power Company. In November of the same year, KHNP, EDF (France), and Westinghouse (USA) submitted bids, entering into a fierce competition among global companies.

In January this year, the Czech Power Company expanded the bidding scale from one unit to up to four units to maximize energy security and national interests, narrowing the competition to a two-way race between KHNP and EDF, who submitted revised bids. A government official said, "At that time, it was widely believed that EDF, with extensive European nuclear business experience under the strong influence of France leading the European nuclear alliance, had an advantage. However, the Czech side highly evaluated the competitiveness and reliability of Korean nuclear power accumulated over the past 50 years and selected KHNP as the preferred negotiator, reaffirming the international status of the Korean nuclear industry to the world."

Overseas nuclear power projects are a national competition and an all-out national effort. This good news is the result of more than two years of joint efforts by KHNP, partner companies, the nuclear academia and research institutes, government ministries, and support agencies. Considering the geographical conditions as a landlocked country and power infrastructure, Korea proposed a 1000 MW-class model optimized for the Czech environment and obtained European operator requirements certification in March 2023, proving its technology and safety. Additionally, leveraging the world-class construction capability accumulated over the past 50 years and the experience of completing the UAE Barakah nuclear power project on budget and on time, Korea proposed a business plan with competitive pricing, quality, and delivery.

◆ Final Contract in March Next Year... Government Plans to Review Follow-up Measures

Although the selection of the preferred negotiator marks passing the critical stage of nuclear power export, successful contract negotiations between KHNP and the client company must be completed for the final contract to be signed around March next year.

First, a 'Negotiation Task Force (TF)' centered on KHNP will be formed to ensure thorough contract negotiations, and the government plans to strengthen support in coordination with the private sector. To this end, the Ministry of Trade, Industry and Energy plans to promptly hold the 'Nuclear Power Export Strategy Promotion Committee' chaired by the minister to review follow-up measures.

Moreover, the government plans to advance the nuclear power export strategy so that this achievement leads to third and fourth nuclear power plant exports, enabling the Korean nuclear industry to emerge as a global leading industry. It will expand cooperation with promising export countries and promote customized marketing by country, while simultaneously exporting nuclear power plant equipment along with new nuclear power plant orders to leap forward as a comprehensive nuclear power export powerhouse. Additionally, the government will establish a '2050 Nuclear Industry Roadmap' and promote the enactment of a 'Special Act on Nuclear Industry Support' to present a long-term vision for nuclear power exports and strengthen related support systems.

A Ministry of Trade, Industry and Energy official said, "Using the nuclear power project as a medium, we will deepen the 'strategic partnership' on the occasion of the 35th anniversary of Korea-Czech diplomatic relations in 2025," adding, "We will actively discover and promote promising cooperative projects such as concluding a trade and investment promotion framework, expanding joint research and development (R&D) in science, technology, industry, and energy, revitalizing human exchanges including increasing direct flights, and nurturing nuclear power personnel."