Dukovany: Czech Republic Leans Towards Korean KHNP for New Reactors
The Czech Republic has selected Korea Hydro & Nuclear Power (KHNP) for exclusive negotiations to construct two reactors at Dukovany, favoring the Korean APR1000 over EDF’s EPR1200. This decision is not without uncertainties, especially as Westinghouse may block the Korean industrialist, arguing that the export of the APR1000 requires prior approval from the United States.
In the final selection against EDF, the Czech authorities preferred KHNP’s proposal to enter into exclusive negotiations to build two reactors at the Dukovany power plant. The two APR1000 reactors offered by the Asian operator were chosen in the final phase over the two EPR1200s (a variant of the EPR) proposed by EDF. The French electricity company had heavily invested in this tender, while also needing to mobilize the French and European supply chain. A final decision is expected in the first quarter of 2025.
Westinghouse Challenges KHNP Again
According to Czech Prime Minister Petr Fiala, “The Korean offer was better on all evaluated criteria.” However, the work to finalize the agreement is still lengthy. Indeed, negotiations are overshadowed by the prospect of a U.S. veto. In a statement, the American company Westinghouse writes, “KHNP is not authorized to use Westinghouse’s reactor technology, which forms the basis of KHNP’s offer and references for the Czech nuclear tender, without Westinghouse’s agreement.”
KHNP would need authorization from the U.S. government before sharing the technology beyond what was agreed with Korea. The company adds, “Westinghouse reserves the right to contest this in the relevant national and international jurisdictions.” Neither KHNP nor the Czech authorities have yet responded. A similar offensive was launched against KHNP when Poland was seeking a partner for its nuclear program. In that first case, the complaint was dismissed by the Columbia court of justice in late 2023, but the case continues.
“The decision has no bearing on the ongoing arbitration proceeding against Kepco/KHNP involving Kepco/KHNP’s non-allowed transfer of Westinghouse’s intellectual property outside Korea. Westinghouse is committed to protecting our intellectual property, and we fully expect to be successful in the arbitration on all issues. The arbitration panel has confirmed that a final ruling is not expected until late 2025.” Westinghouse had stated.
Economic Stakes
Another issue raises questions among observers close to the case. The Korean offer is based on a fixed price of about 200 billion Czech korunas per unit, which is just under 8 billion euros. This marketing model is unusual in the market and could expose the project to difficulties like those encountered by Areva in Finland with the Olkiluoto project.
Lastly, while the Korean offer promises to use 60% local labor, some regret that the European revival of nuclear power does not rely more on European resources. EDF had highlighted this aspect in its offer by working for several years with the Czech industrial fabric, particularly involving it in the Hinkley Point C project in the United Kingdom.
European Position
In this discussion with this “preferred bidder,” the new European Commission (whose President Ursula von der Leyen was re-elected on July 18) will also conduct its review. It is worth noting that the former Commission had provided initial support for the project by validating its financing model. This includes a state loan at zero interest covering 98% of investment costs, a revenue guarantee for the operator over 40 years, and a protection mechanism against unforeseen events from the construction phase.
Today, the Czech electricity company CEZ operates six Russian-designed reactors within its territory: four at the Dukovany power plant and two at the Temelín site. This represents about 37.5% of its electricity mix (dominated by coal at 44%). To aim for a decarbonization goal, Prague launched a tender in 2022 that could eventually involve four new reactors.
While EDF notes the choice made by Prague, the French company states it remains ready to continue or restart discussions with CEZ and the Czech government if the tender process needs to be modified or adjusted in the coming weeks or months. ■
By Ludovic Dupin (Sfen)
Photo: Dukovany nuclear power plant in the Czech Republic – @Shutterstock