A Czech court has suspended a $18 billion nuclear reactor deal between Prague and South Korea’s KHNP after a last-minute legal challenge from French energy giant EDF, throwing the future of the country’s energy independence into uncertainty.
At a Glance
- A Czech court blocked a multi-billion-dollar deal with South Korea’s KHNP for two nuclear reactors following an EDF complaint
- KHNP won the original contract in July, but EDF challenged the decision through Czech courts after losing the bid
- The court issued a pre-emptive ruling preventing the deal’s signature until a final verdict is delivered
- The Czech Republic relies on nuclear power for 40% of its electricity and plans to increase this to 50% by 2050
- Construction was planned to start in 2029, with the first reactor operational by 2036
French Company Blocks Major Nuclear Deal
A regional court in Brno, Czech Republic has halted a significant nuclear power agreement between the Czech government and Korea Hydro & Nuclear Power (KHNP). The court intervened after French energy corporation EDF filed a lawsuit challenging the bidding process. This legal action comes after KHNP won the contract in July to build two new reactors at the Dukovany nuclear plant, a facility currently operated by the state-run CEZ group. The deal, valued at approximately 200 billion Czech koruna ($9 billion) per reactor, was expected to be finalized by March 2025.
“Issued a pre-emptive ruling banning the signature,” stated the regional court in the second Czech city of Brno.
The court’s decision prevents the official signing of the contract until a final verdict is delivered on EDF’s claims. This measure is designed to preserve EDF’s chance to compete for the contract if the court later rules in its favor. EDF had previously filed an appeal with the Czech antitrust watchdog UOHS, which was rejected, prompting the company to escalate the matter to the judiciary.
Claims of Unfair Bidding Process
EDF has welcomed the postponement, stating that it “provides the necessary time for a thorough assessment of any potential infringement of its rights.” The French company claims it can offer 60% of the contract’s value to Czech companies, which it states is more than what KHNP has proposed. This argument forms part of EDF’s broader claim that the selection process lacked transparency and fairness, allegations that both CEZ and the Czech antitrust body have firmly denied.
Despite the legal challenge, both KHNP and Czech officials maintain confidence in the correctness of the tender process. Czech Prime Minister Petr Fiala has publicly stated that KHNP’s bid was superior in all assessed criteria, defending the government’s original decision. CEZ has even challenged EDF to make its bid public to demonstrate the transparency of the selection process. KHNP has acknowledged the postponement but expressed confidence that the tender was conducted properly.
Energy Independence at Stake
The dispute comes at a critical time for the Czech Republic’s energy strategy. The nation currently relies on nuclear power for 40% of its electricity production and has ambitious plans to increase this to 50% by 2050. This nuclear expansion is central to the country’s efforts to reduce dependence on fossil fuels and enhance energy security. CEZ had planned to start construction in 2029, with the first reactor entering trial operation by 2036. The legal delay now places this timeline in jeopardy.
“Provides the necessary time for a thorough assessment of any potential infringement of its rights,” stated EDF regarding the court’s decision.
The Dukovany nuclear plant expansion has already faced previous challenges. US-based Westinghouse was eliminated from the tender in January 2024 and also filed an appeal with the Czech antitrust watchdog, which was rejected. This latest setback with EDF’s legal challenge represents another hurdle in the Czech Republic’s efforts to modernize and expand its nuclear infrastructure. The court’s final decision will determine whether the country can proceed with its chosen South Korean partner or if the bidding process will need to be revisited.
