The demand for nuclear power plants is expected to increase worldwide. Even countries without a single nuclear power plant have expressed their intention to place orders. Numerous variables come into play in nuclear power projects. If either the ordering party or the supplier bears all the risks, nuclear construction cannot become vigorous. A structure that shares the risks must be established.

On the 30th, Park Gyun, head of the overseas nuclear power plant business group at Korea Hydro & Nuclear Power (KHNP), said this during the third session of the '2025 Korea Nuclear Annual Conference' held at Lotte Hotel in Jung-gu, Seoul. The theme for this session was 'Accelerating nuclear power deployment for global energy transition.'

From the left, Jamie Fairchild, OECD NEA researcher, is sharing opinions with panelists on the topic 'Accelerating Nuclear Power Plant Deployment for Global Energy Transition' at the '2025 Korea Nuclear Annual Conference' held at Lotte Hotel in Jung-gu, Seoul on the 30th. From the left are Zachary Radd, CRO of LucidCatalyst, Sadika Tupi, Vice President of Eskom, Lee Hee-yong, CEO of Jeil Partners, Bernard Blanc, Vice President of A-Systems, Kim Yeon-hwan, Head of Nuclear Export Strategy at Korea Electric Power Corporation, and Park Kyun, Head of the Overseas Nuclear Business Department at Korea Hydro & Nuclear Power. /Courtesy of In-A Lee.

Typically, nuclear power plants proceed with the ordering party placing an order and multiple suppliers participating in the bidding to establish contracts. For example, the ordering party for the new nuclear power plant in Dukovany, Czech Republic, is Dukovany II Nuclear Power Company (EDU II), a subsidiary of Czech Electricity Company (CEZ). In Korea, KHNP, France's EDF, and the U.S. firm Westinghouse engaged in fierce competition to be selected as suppliers.

Nuclear plant construction generally involves the ordering party and the supplier signing a turnkey contract using Engineering Procurement Construction (EPC). It is a structure where one supplier leads the project from design to construction. This method offers advantages such as shortening the construction period and clarifying responsibility. KHNP is also expected to finalize the contract for the Czech nuclear plant using the EPC turnkey method.

The problem is that nuclear plant construction is a long-term project that takes over 10 years, so there are many unpredictable variables. Deputy Minister Park said, 'When risks like construction delays and excessive expenses arise during nuclear construction, the supplier ends up shouldering all the problems. Sometimes, disputes arise with the ordering party after completion. Consequently, there is a growing trend among suppliers to contract only the parts they excel at rather than securing the entire project at once. If suppliers collaborate, it could lead to better conditions.'

Deputy Minister Park expressed concern that the more selfish contract terms suppliers impose, the fewer nuclear orders there will be. He noted, 'If suppliers only contract for the aspects they excel at and leave out others, it is understandable that ordering parties without experience in nuclear construction would feel anxious. For the development of the nuclear market, various suppliers need to collaborate and secure nuclear projects.'