Korea Hydro & Nuclear Power (KHNP) had a contract signing ceremony for the construction of a new nuclear power plant in the Czech Republic halted a day prior due to a decision by the Czech court, but there are predictions that the possibility of losing priority negotiation status, like the Moorside nuclear project in the UK in 2017, is low. Analysis suggests that the lawsuit filed by Électricité de France (EDF), which failed in the Dukovany nuclear project bid, reflects the political situation within France.
On the 8th, according to the nuclear power industry, the French Court of Auditors recently advised EDF to ensure that ongoing domestic and international projects do not get delayed. EDF is involved in the construction of the Olkiluoto 3 nuclear power plant in Finland, but it has been delayed for 13 years. The Flamanville nuclear power plant being built in France is also delayed by 12 years. The analysis is that France, a nuclear power, is trying to hinder KHNP's winning of the nuclear bid in the Czech Republic after failing in securing the same European nuclear project and facing pressure from the Court of Auditors.
Jeong Beom-jin, a professor at Kyunghee University’s Department of Nuclear Engineering, said, 'The reason EDF filed the lawsuit was to question the priority negotiation selection process for KHNP, but the Czech Prime Minister stated that the process was conducted transparently. South Korea, which is weaker than France politically and lacks a president, won the nuclear bid in the Czech Republic purely on its technological prowess. Therefore, this contract is bound to be maintained.'
There have been cases in the past where priority negotiation parties were selected but later collapsed. In 2017, Korea Electric Power Corporation (KEPCO) was chosen as the priority negotiation party for the Moorside nuclear project in the UK, but Toshiba, which held 100% equity of NuGen, which possessed the nuclear project rights at that time, notified KEPCO of the cancellation of its priority negotiation status in July 2018. The Moorside nuclear project was canceled that November.
There have also been cancellations of nuclear projects in the Czech Republic. The Czech government pushed for the construction of the Temelín nuclear reactors 3 and 4 from 2013 to 2014, but the plans were canceled due to lack of economic feasibility and political factors. As of now, the construction of new nuclear reactors in Temelín has not proceeded.
The nuclear industry views that the Dukovany nuclear project is different from the Moorside and Temelín projects. The Czech government has shown its intention to sign a contract with KHNP. On the 7th, ČEZ, the Czech energy company, held a press briefing and announced, 'Next week, we will file a request with the Czech Supreme Administrative Court to dismiss the injunction.' Additionally, the Czech government stated in a press release published on its website on the 8th that it has pre-approved the Dukovany nuclear project contract so that it can sign with KHNP immediately after the local court's injunction decision, which states that no contracts can be signed until the ruling on EDF's administrative lawsuit is made, is canceled.
Previously, the Brno District Court in the Czech Republic issued an injunction prohibiting the signing of a contract between KHNP and the local contractor EDU II (Dukovany II Nuclear Power Plant). As a result, the contract process will be halted until the ruling on the administrative lawsuit filed by EDF is issued.