Korea Kori Nuclear Power Plant. Photo: Korea Kori NPP, Wikimedia Commons
What is happening?
On July 17, the Czech Republic selected Korea Hydro & Nuclear Power (KHNP) as the preferred bidder for constructing two new 1000 MW nuclear reactors in the Dukovany region. This decision comes after a competitive bidding process that saw KHNP and France’s EDF vying for the contract. The total estimated cost for the project is approximately 400 billion CZK (approx. 17.3 billion USD), with the final contract amount to be determined through future negotiations. KHNP, along with Team Korea—a consortium of South Korean companies including KEPCO E&C, Doosan Enerbility, Daewoo E&C, KEPCO NF, and KEPCO KPS—will be responsible for the comprehensive construction services. These services encompass design, procurement, construction, commissioning, and nuclear fuel supply.
KHNP was selected based on several factors. Team Korea proposed a reactor design optimized for the Czech Republic’s geographical and infrastructural conditions and demonstrated superior technological prowess and safety standards, having obtained European operator certification. The accumulated experience from over 50 years of involvement in nuclear projects and the successful execution of the Barakah project in the United Arab Emirates bolstered their bid. Furthermore, KHNP offered competitive pricing, quality, and a reliable delivery schedule, which were pivotal in securing the contract. Local Czech media highlighted that the cost proposed by KHNP was significantly lower than EDF’s, promising timely construction within the set budget.
What is the broader picture?
The Czech Republic’s decision to partner with KHNP reflects its strategic shift towards nuclear power and renewable energy as it phases out coal by 2033 to reduce carbon emissions. This move starkly contrasts its western neighbors, Austria and Germany, which have been moving away from nuclear energy. The Czech government’s commitment to nuclear power is evident in its plan to construct two additional large-scale nuclear plants in Dukovany and Temelín, aiming for enhanced energy security and independence.
This project marks a significant milestone for South Korea, representing its first nuclear reactor export to Europe. The success of this bid is expected to pave the way for South Korea to secure more nuclear deals across Europe, including in Finland, the Netherlands, Poland, and Sweden. For KHNP and Team Korea, this project demonstrates their competitive edge in the global nuclear market and strengthens their international reputation.
The collaboration also underscores the growing strategic ties between South Korea and the Czech Republic. Numerous South Korean companies’ involvement in the project highlights the depth of economic cooperation between the two countries. Furthermore, the project is expected to bring economic benefits to the Czech Republic by creating jobs and fostering local industry partnerships.
Why does it matter?
This development has significant implications on multiple fronts. For the Czech Republic, expanding its nuclear energy capacity is critical to achieving energy security and reducing reliance on fossil fuels. Nuclear power offers a stable, low-carbon energy source that can help meet the country’s future energy needs while aligning with its environmental goals. The construction of new nuclear reactors is expected to provide a reliable energy supply, mitigate the impacts of energy crises, and reduce greenhouse gas emissions.
For South Korea, winning the bid is a significant achievement that validates its nuclear technology capabilities and enhances its standing in the global energy market. This deal is particularly noteworthy given the competitive nature of the bidding process and the high stakes involved. It signifies a breakthrough in South Korea’s efforts to revive its nuclear power industry, which has faced challenges in recent years. The success of this project could lead to more international contracts, boosting the country’s economy and supporting its nuclear energy sector.
Politically, the deal is also important for both countries. For the Czech government, it demonstrates proactive measures to secure energy independence and sustainability, which could garner public and political support. For South Korea, it provides a diplomatic and economic win that could bolster President Yoon Suk-yeol’s administration, especially amidst domestic political challenges. The agreement also strengthens bilateral relations, showcasing a successful partnership that could extend to other areas of cooperation.
