Czech court halts signing of nuclear reactor deal with South Korea

In the Czech Republic, a court temporarily prevented the government from finalizing a significant deal with South Korea's Korea Hydro and Nuclear Power (KHNP) to build two nuclear reactors at the Dukovany power plant. This ruling came as part of a legal challenge initiated by the French company EDF, which had lost the tender to KHNP. The court's ruling, announced on a Tuesday, necessitated a pause on any contract signing, originally scheduled for the following Wednesday, while it reviews the complaint from EDF regarding the tender process. South Korean officials emphasized the nature of this decision as a minor setback and conveyed confidence that the deal would eventually proceed. They reiterated that all other project procedures would continue as planned unless the court ruled otherwise. In context, CEZ, the largest electricity company in the Czech Republic and a majority state-owned entity, expressed its belief that the tendering process was fair and transparent in favoring KHNP's proposal against EDF's bid. Prime Minister Petr Fiala also declared confidence in the legitimacy of the tender process. The new reactors are part of a strategy to reduce reliance on fossil fuels and modernize the Dukovany facility, which consists of four older reactors completed in the 1980s. Each of the two new reactors is estimated to cost around 200 billion koruna (about $9.1 billion), with operational trials anticipated to begin by 2036. This court ruling has inadvertently placed the Czech government's energy strategy and investment plans at a pivotal crossroads, prompting ongoing discussions about the future of nuclear energy development in the region.