EDF blocks Czech nuclear contract with KHNP on legal grounds

EDF is challenging the legality of the nuclear contract awarded to KHNP, citing potential South Korean state support in violation of EU rules, leading to a temporary suspension of the Dukovany II project.

Share:

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

*renews at 199$/year, cancel anytime before renewal.

French utility Électricité de France (EDF) secured a court injunction in the Czech Republic on 6 May to halt the signing of a contract between the Czech government and Korea Hydro & Nuclear Power (KHNP), selected to build new reactors at the Dukovany power plant. This follows a prior complaint by EDF, dismissed by the Czech competition authority, questioning the integrity of the tender process.

A complaint based on European rules

EDF maintains that its action aims solely to ensure compliance of the project with European regulations. Vakis Ramany, Senior Vice President for International Nuclear Development at EDF, told Czech media that KHNP’s offer—estimated at approximately CZK200bn ($8.6bn) per unit—would be economically unfeasible without illegal state aid. He stated that this allegation is based on publicly available data and statements from the Czech government.

EDF claims its own bid, based on a 1,200 MW reactor versus KHNP’s 1,000 MW, was priced comparably, with only a marginal difference. The company guarantees technology, deadlines and costs for more than half of the contract but highlights that it cannot bear the risks associated with local administrative procedures.

Czech and South Korean opposition

Project company Elektrárna Dukovany II has appealed to the Czech Supreme Administrative Court to lift the injunction, supported by KHNP. The Czech Ministry of Industry and Trade argues that the contract does not fall under the EU’s foreign subsidy regulation, as the tender process began before the regulation took effect.

KHNP has rejected the subsidy allegations as baseless and considers EDF’s actions a threat to regional energy security. The company insists it has complied with all international regulations.

Ongoing EU review

On 2 May, European Commissioner for Industrial Strategy Stéphane Séjourné sent a letter requesting a delay in signing the contract, citing a preliminary review by the European Commission into possible distortions of the internal market caused by foreign subsidies. The Czech government described the letter as non-binding.

An agreement was reached between Prague and Brussels to fast-track consultations on the legal and technical aspects of the engineering, procurement and construction (EPC) contract. According to Reuters, the contract signing may now be delayed until after the general election scheduled for October.

Industrial stakes for the Czech sector

EDF claims its bid guaranteed 40% of the contract for Czech firms, potentially rising to 60% if four units are built. This could represent up to CZK350bn in local contracts, and an additional CZK750bn via EDF-led European nuclear projects.

According to Ramany, EDF does not oppose the construction of new nuclear reactors in the Czech Republic but seeks to ensure the project fully aligns with European standards. He added that only a builder receiving state subsidies could absorb the risks inherent in a complex European regulatory environment.

Nano Nuclear Energy has signed a memorandum of understanding with Dioxitek, Argentina’s only uranium supplier for nuclear fuel, to assess the development of local conversion and enrichment capacities.
Stockholm plans to restart uranium extraction by lifting the 2018 ban, aiming to secure strategic supply chains and support domestic nuclear electricity production.
The French Atomic Energy Commission has signed a letter of intent with start-up Calogena to study the installation of a 30 MW thermal small nuclear reactor at its Cadarache site.
A Guidehouse Research report anticipates strong growth in the global nuclear modular reactor market, with revenues rising from $375.8 million in 2025 to $8.1 billion in 2034.
KHNP, Doosan, POSCO and Samsung C&T join US partners to develop 5 GW of modular reactors, expand uranium enrichment and build an 11 GW energy complex in Texas.
The US Department of Energy is creating an industrial consortium to accelerate domestic enriched uranium production and reduce reliance on foreign imports ahead of the Russian supply ban in 2027.
The kamikaze drone damaged an auxiliary transformer at the Kursk plant, halving the output of its only reactor in operation, according to Rosatom and the International Atomic Energy Agency.
The four production units at the Gravelines nuclear power plant, shut down in mid-August by a massive jellyfish incursion, are back online, restoring the site’s full capacity.
enCore Energy Corp. has completed a $115 million fundraising through convertible notes maturing in 2030, strengthening its financial capacity for upcoming operations.
Vattenfall advances its nuclear project in Sweden by selecting two modular reactor suppliers, GE Vernova and Rolls-Royce SMR, for a potential installation on the Värö Peninsula.
NANO Nuclear Energy has been selected to compete in the final round of xTechSearch 9, a US Army initiative aimed at identifying high-potential dual-use technology solutions.
Aalo Atomics completes Series B funding, bringing its total to USD 136 million, to build its first modular nuclear power plant dedicated to data centers.
The Malaysian government initiates a national assessment on nuclear energy feasibility, targeting regions facing energy supply constraints and integrating international regulatory requirements.
The merger between Premier American Uranium and Nuclear Fuels reaches a key milestone following final approval of the arrangement plan by the Supreme Court of British Columbia.
TVA, Google, and Kairos Power formalize an agreement to connect an advanced reactor to the grid, supporting data center energy growth and reinforcing the U.S. nuclear industry.
The U.S. Department of Defense has signed an agreement with X-energy to develop a commercial nuclear microreactor intended to power sensitive military infrastructure.
With cash reserves multiplied sevenfold in nine months, NANO Nuclear intensifies development of its KRONOS MMR and positions itself in the Canadian and U.S. modular nuclear markets.
Equinix signed a preorder for 20 Kaleidos nuclear microreactors and a letter of intent for a power purchase agreement with ULC-Energy, reinforcing its energy supply strategy for its data centers.
The U.S. Department of Energy selects Oklo and its subsidiary Atomic Alchemy for three pilot reactor projects aiming for criticality before July 2026.
The United States Department of Energy has selected eleven companies to build experimental nuclear reactors by July 2026, under a programme aimed at meeting rising electricity demand.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.