The Czech Republic plans to appeal a court injunction blocking a $18.6 billion nuclear deal with South Korea’s KHNP, after EDF’s legal challenge. The project, delayed at the last moment, would be South Korea’s first overseas nuclear contract since 2009.
The Czech Republic’s state-owned power utility, CEZ, will appeal a court injunction that has temporarily halted a major nuclear power agreement with South Korea, officials confirmed on Sunday.
The injunction, issued last week by a Czech regional court, suspends CEZ from signing a final contract with the South Korean consortium led by Korea Hydro & Nuclear Power Co. (KHNP). The estimated 26 trillion-won (US$18.6 billion) project involves building two 1,063-megawatt nuclear reactors at the Dukovany nuclear power plant, located approximately 200 kilometers southeast of Prague.
The court’s decision followed a legal challenge from the French energy company EDF, which lost to the KHNP-led consortium in the competitive tendering process. EDF claims irregularities in the bidding procedure, leading to the injunction that has now placed the entire agreement on hold.
Czech officials have since reassured their South Korean counterparts that CEZ, along with relevant government ministries, will lodge an appeal with the country’s highest administrative court within this week. The aim is to overturn the suspension and proceed with the landmark nuclear deal without further delay.
CEZ CEO Daniel Benes stated last week that he expects the court to act swiftly, acknowledging the strategic importance of the project for both the Czech Republic and South Korea. “Given the significance of this case, we anticipate a prompt resolution,” Benes said.
KHNP was set to finalize the contract last week with Elektrarna Dukovany II (EDU II), a CEZ subsidiary responsible for executing the nuclear project. The signing ceremony, which was to be attended by South Korean Industry Minister Ahn Duk-geun and a group of journalists in Prague, was postponed at the last moment due to the court’s injunction.
Expressing regret over the abrupt delay, Benes offered an apology to the South Korean delegation, many of whom had already arrived in the Czech capital for the signing.
Should the deal proceed as planned, it would mark South Korea’s first international nuclear power project since 2009, when a KHNP-led consortium secured the Barakah nuclear power plant contract in the United Arab Emirates.
The Dukovany expansion project is a centerpiece of the Czech Republic’s long-term energy strategy, aiming to reduce reliance on coal and boost its carbon-neutral energy capacity by the 2030s.
