KHNP chief expects only 'slight' delay in Czech nuclear power plant deal
Whang Joo-ho, president and CEO of South Korea's state-run Korea Hydro & Nuclear Power (KHNP), speaks during a press briefing at Government Complex Sejong, Feb. 20, 2024. Courtesy of KHNP
The chief of South Korea's state-run Korea Hydro & Nuclear Power (KHNP), which is leading a consortium to build nuclear reactors in the Czech Republic, said he expects the ongoing delay in the signing of the envisioned nuclear plant deal to be resolved in the near future, calling it a "slight" delay.
"There has been a slight delay to our original timeline, but we expect the issue to be resolved smoothly soon," Whang Joo-ho, president and CEO of KHNP, said while speaking with reporters in Prague on Thursday (local time).
The KHNP-led South Korean consortium had originally been scheduled to finalize the contract Wednesday with Elektrarna Dukovany II (EDU II), a subsidiary of the Czech state utility CEZ, for the construction of two nuclear power units at the Dukovany nuclear power plant, located some 200 kilometers southeast of Prague.
The signing of the estimated 26 trillion-won ($18.6 billion) deal was temporarily postponed due to a court injunction filed by French energy firm EDF, which lost in the bidding process.
Wang highlighted that the Czech Cabinet has already approved all elements of the contract, reaffirming that the final signing will move forward without major issues.
On Wednesday, the Czech Cabinet granted approval for EDU II to proceed with the contract as soon as the legal issue is resolved, with Prime Minister Petr Fiala expressing hope that the court would soon recognize the significance of the project for national security and energy stability.
The deal, once finalized, would mark the largest public procurement in Czech history, as it seeks to accelerate its transition away from coal and increase its reliance on nuclear energy.
The Czech government has been pushing to reduce its reliance on fossil fuels and increase the share of nuclear energy. Nuclear power currently provides about 40 percent of the country's electricity, and Prague aims to raise this to over 50 percent in the coming years.
The two new reactors will be built adjacent to the four existing 510-MW units at Dukovany, which have been in operation since the 1980s. The first new unit is expected to begin trial operations in 2036, with the second following approximately two years later.
Also on Wednesday, CEZ CEO Daniel Benes said the company would soon appeal the court's injunction, citing the project's importance for national interests.
However, it remains unclear when the Czech Supreme Administrative Court will make a final ruling on the appeal.
"We hope the matter will be concluded soon," Whang said, noting that the European country faces a limited window to replace its coal-fired power generation as it moves toward carbon neutrality.