Korea Hydro & Nuclear Power Confirms Order for New Nuclear Power Plant Construction in Dukovany, Czech Republic

Korea Hydro & Nuclear Power has finalized its contract for the construction of a new nuclear power plant in Dukovany, Czech Republic.

Czech Prime Minister Petr Fiala stated on the 30th (local time) that "the government has agreed on a financing model for the construction of two new nuclear power plants" and that "a stake worth at least $18 billion will be secured from CEZ, the Czech electricity company, for the project."

Prime Minister Fiala further announced that a contract with Korea Hydro & Nuclear Power, selected as the nuclear power plant contractor, will be signed on May 7.

Czech Finance Minister Zbyněk Stanjura also explained that the government plans to offer loans for the financing of the new nuclear power plants and will seek approval from the European Union (EU) immediately after the contract is signed.

As an EU member state, Czech Republic shares its electricity grid, so approval from the European Commission is essential when constructing large power generation facilities such as nuclear power plants.

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Team Korea, led by Korea Hydro & Nuclear Power, faced fierce competition last year against Electricité de France (EDF) during the priority negotiation process for the nuclear power project.

Although EDF raised procedural objections and sought appeals, the Czech Antimonopoly Office (UOHS) dismissed EDF's appeal, removing obstacles to contract conclusion.

Should this contract be signed, Korea Hydro & Nuclear Power will construct Units 5 and 6 of the Dukovany nuclear power plant, with the project cost expected to reach approximately 400 billion korunas (about 26 trillion won). Korea Hydro & Nuclear Power has also bid for the construction of two nuclear power plants in the Temelin region; securing the Temelin project would further enhance the scale of its achievements.

This order is significant as it marks the first overseas export of nuclear power plants in 16 years since the Barakah nuclear power plant in the United Arab Emirates (UAE) in 2009. Notably, it is viewed as a great success in gaining international recognition for the technological prowess and competitiveness of South Korea’s nuclear power industry by securing a nuclear construction contract in the European market, where leading nuclear power countries like France are prominent.

The Team Korea consortium comprises Korea Hydro & Nuclear Power, along with its affiliates including Korea Electric Power Corporation Technology, KEPCO KPS, and KEPCO Nuclear Fuel, as well as private companies like Doosan Enerbility and Daewoo E&C, which is expected to have a positive ripple effect on the entire domestic nuclear power industry.

Image source: A panoramic view of the new nuclear power plant site in Dukovany, Czech Republic. (Provided by Korea Hydro & Nuclear Power) / News1