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KHNP Signs Final Nuclear Power Plant Contract with Czech Republic, Marking First Entry into European Market After Overcoming French Challenge

Contract Halted by EDF Lawsuit, Finalized After Supreme Court Dismissal
Full-Scale Construction of Dukovany Units 5 and 6 Begins
Potential for Winning Temelin Nuclear Power Plant Project Also Opens

KHNP Signs Final Nuclear Power Plant Contract with Czech Republic, Marking First Entry into European Market After Overcoming French Challenge

On June 4 (local time), Korea Hydro & Nuclear Power (KHNP) signed a final contract with the Czech Dukovany II Nuclear Power Plant (EDU II) for a new nuclear power project. Previously, a local Czech court had banned the signing of the contract due to a lawsuit filed by bidding competitor Electricite de France (EDF), but the Supreme Administrative Court ultimately dismissed the case, allowing the contract to be concluded. This marks the first time in 16 years since the export of nuclear power plants to the United Arab Emirates (UAE) in 2009, and it is also the first entry of South Korea into the European nuclear power market.


According to KHNP, this project, commissioned by the Czech government, is the country’s largest energy infrastructure initiative. Through this contract, KHNP will supply two units of the Korean-designed APR1000 nuclear reactors, each with a capacity of 1,000 MW, to the Dukovany region in the Czech Republic.


This contract, which was signed after about nine months of technical and commercial negotiations following KHNP’s selection as the preferred bidder in July last year, is South Korea’s second overseas nuclear power plant order after the 2009 Barakah project in the UAE. It holds historical significance, especially as South Korea, which had imported European-type nuclear reactors such as Hanul Units 1 and 2 in 1982, is now exporting nuclear reactors to Europe.


The negotiation process was intense. Immediately after being selected as the preferred bidder in July last year, KHNP formed a dedicated negotiation team and held more than 200 meetings. In November last year, a delegation of about 60 negotiators from EDU II visited South Korea to inspect nuclear power sites and hold face-to-face discussions. In December, a quality assurance audit was conducted at KHNP’s headquarters. Both sides concluded all negotiations by the end of March this year.


The Czech government has a plan to build up to four new nuclear power plants to achieve energy security and carbon neutrality goals. Initially, the bidding was limited to a single unit, Dukovany Unit 5, but the Czech government later expanded the project scope and requested proposals for an additional three units (Dukovany Unit 6, Temelin Units 3 and 4). KHNP will first construct Dukovany Units 5 and 6, and there is potential for the project to expand to the Temelin site within the next five years.


As the main contractor for this project, KHNP will oversee the entire nuclear power plant construction process together with “Team Korea,” which includes Korea Electric Power Corporation Engineering & Construction (design), Doosan Enerbility (main equipment manufacturing and construction), Daewoo Engineering & Construction (construction), KEPCO Nuclear Fuel (nuclear fuel), and KEPCO KPS (commissioning and maintenance).


Going forward, the two companies will hold a kick-off meeting and begin the full-scale project. KHNP plans to sign subcontracting agreements with major partners and hold two domestic briefings this year to provide guidance on supplier registration procedures and technical standards. In addition, KHNP will establish a construction office at the Dukovany site and accelerate pre-construction activities such as permitting and site surveys. EDU II aims to begin construction of Dukovany Unit 5 in 2029 and has entered the design and construction preparation phase.


KHNP President Hwang Jooho said, “This contract is another demonstration of the international competitiveness and reliability of Korean nuclear power technology,” adding, “We will fulfill our responsibility to successfully complete cooperation with the Czech Republic and provide safe and sustainable energy for future generations.”


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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