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(Bloomberg) — The Czech Republic picked Korea Hydro & Nuclear Power Co. over Electricite de France SA as the preferred supplier of two nuclear reactors, a multibillion-dollar project that’s set to be the country’s biggest-ever investment.
KHNP will now negotiate with Czech officials and majority state-owned utility CEZ AS on contract terms for two reactors at the nation’s Dukovany complex, with a potential option for another two at the Temelin facility, Prime Minister Petr Fiala said Wednesday.
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A landlocked country with limited options for wind and solar power, the Czech Republic is betting on atomic energy as a key part of its plan to wean itself off coal, as well as Russian oil and gas. The government previously pledged financial support to help CEZ commission at least one large reactor that would start replacing its aging Soviet-era nuclear units.
The KHNP offer was “the best in all aspects” and implies a construction cost of about 200 billion koruna ($8.6 billion) for the first unit, Fiala said. That suggests the price of the electricity generated may be no more than €90 a megawatt-hour, he said.
The decision is a fresh setback for the French nuclear industry, which has faced construction delays and cost overruns over the past decade at reactor projects in France, Finland and the UK.
In 2022, Poland chose Westinghouse Electric Co. and Bechtel Group over EDF to build its first three nuclear reactors, while KHNP has been in talks on a separate deal with a private Polish partner.
Earlier this year, the Czech government excluded Westinghouse from its bidding process, saying it hadn’t met requirements. The country previously adopted regulations that prevented Russia and China from participating in nuclear projects for national security reasons.
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Europe remains divided over the future of nuclear energy. While Germany has now shunned atomic power, countries such as France and the Czech Republic see it as a way to reach the continent’s decarbonization goals. The latter’s plans for the sector would increase the share of nuclear in its energy mix to about 50% from roughly 30% now.
“The Czech Republic is — and wants to be — an even stronger center of nuclear energy,” the prime minister said. “We want to ensure energy security for the Czech Republic, including future generations, and we want enough energy for an acceptable price.”
South Korea’s Ministry of Trade, Industry and Energy said Wednesday it will immediately form a KHNP-led task force to ensure the deal is finalized in March next year.
—With assistance from Deana Kjuka, Francois de Beaupuy, Heesu Lee and Thomas Hall.
(Updates with further comment from prime minister in fourth paragraph.)
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