KHNP wins nuclear tender in Czech Republic, displacing EDF
South Korean energy giant KHNP has won a multi-billion dollar tender to build two nuclear units in the Czech Republic, beating out EDF.
| Countries | Chine, Tchéquie, France, Corée du Sud, Russie |
|---|---|
| Companies | Westinghouse, Rosatom, EDF, CEZ, CGN |
| Sector | Énergie Nucléaire, Fission |
| Theme | Investissements & Transactions, Contrats |
South Korean giant Korea Hydro & Nuclear Power (KHNP) has won a crucial tender to build two nuclear units at the Dukovany power plant in the Czech Republic. This victory marks a significant milestone in the European energy sector, where KHNP outperformed the French company EDF, the initial favorite. The tender, launched in 2022, was aimed at strengthening the Czech Republic’s nuclear capacity with modern, reliable technologies.
The Czech authorities, led by Prime Minister Petr Fiala, justified their choice by underlining the superiority of the Korean offer on all the criteria assessed, particularly in terms of cost and technology. The chosen reactor model, the APR1000, is a 1050 MW pressurized water reactor, designed specifically to meet European standards.
A strategic choice for energy independence
The decision to build two units at Dukovany, with an option for two more at Temelin, reflects the Czech government’s determination to strengthen its energy independence. The price offered by KHNP, valued at around CZK 200 billion ($8.65 billion) per unit, was deemed particularly competitive. In addition, KHNP’s commitment to integrating 60% Czech companies into the construction process was a decisive factor.
The construction project, scheduled to start in 2029, aims to commission the first reactor in 2036. The Czech government plans to sign an agreement with KHNP by next March, consolidating their strategic partnership.
Reactions from key players
KHNP Managing Director Jooho Whang expressed his satisfaction on X (formerly Twitter), affirming his company’s commitment to keeping the project on time and on budget. As for EDF, although disappointed by the outcome, the French group remains open to possible future discussions with CEZ and the Czech government, should the bidding process be readjusted.
The decision to exclude bids from US giant Westinghouse, as well as Russian and Chinese companies, on the grounds of safety and technical shortcomings, underlines the rigor of the Czech selection process.
Impact on the Czech energy landscape
Nuclear power plants currently account for around 30% of electricity production in the Czech Republic. With the addition of the new units, this share should rise to around 50%, according to the Minister of Industry and Trade, Jozef Sikela. This significant increase in nuclear capacity is part of the country’s strategy to achieve greater energy independence and reduce its dependence on fossil fuels.
KHNP’s victory in this tender also reflects the dynamism and growing competitiveness of South Korean companies in the international nuclear power market.
All in all, this decision marks a major step forward for the Czech Republic in its quest for energy independence and the modernization of its nuclear infrastructure, while opening up new prospects for international cooperation with South Korea.
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