PRAGUE — In a significant move towards energy independence, the Czech Republic’s government has formalized an agreement with South Korea’s state-operated KHNP power utility for the construction of two nuclear reactors within the country. The deal was finalized shortly after a higher court overturned a previous jurisdictional decision that hindered the government’s ability to proceed with the contract.
Prime Minister Petr Fiala emphasized the importance of this development, stating that it was a “crucial step” in enhancing the nation’s energy self-sufficiency and security. Fiala reiterated the significance of nuclear power for the Czech Republic’s energy strategy.
Earlier that day, the Supreme Administrative Court ruled that the earlier legal block was inconsistent with the law, thereby allowing the contract with KHNP to be signed. KHNP emerged victorious from a competitive public tender last year by outperforming a bid from France’s EDF.
The planned reactors are set to be established at the existing Dukovany power plant. This initiative is part of the Czech Republic’s broader strategy to reduce dependence on fossil fuels. Though initially scheduled for signing on May 7, the agreement faced delays due to a legal challenge from EDF at a regional court located in Brno. The challenge followed the dismissal of EDF’s complaint by the Czech anti-monopoly office.
Keen to prevent irreversible decisions amidst the legal uncertainty, the regional court initially restricted the signing of the contract pending further rulings. CEZ and KHNP contested this hesitation, ultimately enabling the contract’s progression.
The new reactors are poised to augment the capability of Dukovany’s existing four 510-megawatt units, which date back to the 1980s. This venture demands significant financial investment, with CEZ’s chief executive, Daniel Beneš, disclosing a total cost of 407 billion koruna ($18.7 billion). The first reactor is expected to commence trial operations by 2036, with the second following approximately two years thereafter.
In contrast to its western neighbors, Austria and Germany, which are stepping back from nuclear energy, the Czech Republic is moving towards reliance on nuclear power and renewable sources. With plans to phase out coal for energy production by 2033 to curtail carbon emissions, nuclear energy forms a cornerstone of the country’s electricity generation, already accounting for over a third of its power. The state-controlled power company CEZ also operates two significant 1,000-megawatt reactors at the Temelin plant.