Latest news with #Dukovany
CNA
04-06-2025
- Business
- CNA
Czechs sign nuclear power plant deal with KHNP after court injunction lifted
PRAGUE :The Czech state-controlled company EDU II and South Korea's KHNP signed final contracts to build two new nuclear power reactors on Wednesday, Prime Minister Petra Fiala said, after a court lifted an injunction barring the deal's closing. A Czech court gave the green light on Wednesday to the $18 billion deal to build two new nuclear power reactors, cancelling an injunction threatening to derail the transaction. The Supreme Administrative Court's decision, announced on Wednesday, meant the biggest Czech procurement deal ever, and a key part of the country's drive to replace ageing coal and nuclear units, could be signed. France's EDF had challenged the tender and won the injunction from a lower court last month, derailing the signing of the contract that was planned for May 7, with a ceremony prepared and a Korean delegation already en route to Prague. However, the state-controlled company EDU II building the plant and KHNP appealed that ruling. The court said on Wednesday it heeded those complaints and found the injunction issued by a lower court illegal and unverifiable. "By cancelling the preliminary injunction with today's judgment, the court lifted the ban on concluding a contract for the fulfillment of a public contract for the construction of a new nuclear power plant in the Dukovany location," the court said. The injunction was a major obstacle threatening the project's timeline amid possibly lengthy court battles and the looming expiration of KHNP's bid. KHNP said in a statement that Wednesday's decision "clears the way for the timely advancement of this strategically important project." Last year, power firm CEZ picked KHNP to build two 1,000-megawatt units to expand its Dukovany nuclear plant, giving KHNP its first project in Europe. EDF has sought to overturn the decision on multiple fronts. The government, which will provide loans and a pricing scheme to make the project profitable, took an 80 per cent stake in the EDU II firm running the project from CEZ in April, with CEZ retaining 20 per cent. CEZ and EDF had no immediate comment on Wednesday's ruling. The lower court which issued the injunction will hold a hearing on the matter of EDF's complaint against the tender itself on June 25. Separately, EDF, the only European company building nuclear plants, sought to cancel KHNP's win through the European Commission on competition grounds, suggesting KHNP's offer was so low that it implied state aid. KHNP has denied any state aid. The Czechs also need to get new EU approval for state loans and an electricity price mechanism for the plant after they expanded the project last year from one reactor - which won EU clearance - to two.
CNA
04-06-2025
- Business
- CNA
Czech court rules $18 billion nuclear power plant deal with KHNP can go ahead
PRAGUE : A Czech court has cancelled an injunction preventing a state-controlled company and South Korea's KHNP from signing an $18 billion contract to build two new nuclear power reactors, paving the way for the project to go ahead. The Supreme Administrative Court's decision, announced on Wednesday, means the biggest Czech procurement deal ever, and a key part of the country's drive to replace ageing coal and nuclear units can be signed, although it still faces court challenges and a potential European Commission probe. France's EDF had challenged the tender and won the injunction from a lower court last month, derailing the signing of the contract that was planned for May 7, with a ceremony prepared and a Korean delegation already en route to Prague. However, the state-controlled company EDU II building the plant and KHNP appealed that ruling. The court said on Wednesday it heeded those complaints and found the injunction issued by a lower court illegal and unverifiable. "By cancelling the preliminary injunction with today's judgment, the court lifted the ban on concluding a contract for the fulfillment of a public contract for the construction of a new nuclear power plant in the Dukovany location," the court said. Last year, power firm CEZ picked KHNP to build two 1,000-megawatt units to expand its Dukovany nuclear plant, giving KHNP its first project in Europe. EDF has sought to overturn the decision on multiple fronts. The government, which will provide loans and a pricing scheme to make the project profitable, took an 80 per cent stake in the EDU II firm running the project from CEZ in April, with CEZ retaining 20 per cent. CEZ, EDF and KHNP had no immediate comment on Wednesday's ruling. The lower court which issued the injunction will hold a hearing on the matter of EDF's complaint against the tender itself on June 25. Separately, EDF, the only European company building nuclear plants, sought to cancel KHNP's win through the European Commission on competition grounds, suggesting KHNP's offer was so low that it implied state aid. KHNP has denied any state aid.
The Independent
04-06-2025
- Business
- The Independent
A Czech deal to build nuclear reactors worth $18 billion is unblocked after a court clears the way
A deal to build at least two nuclear reactors in Czechia was unblocked Wednesday, after an appeals court dismissed on Wednesday a lower court ruling that blocked the government from signing a deal with South Korea's KHNP power utility. The Supreme Administrative Court said that the ruling was not in line with law, meaning the signing of the deal could go ahead. KHNP won a lucrative public tender last year, beating a competing bid by France's EDF. The two new reactors will be built at the existing Dukovany power plant in an effort for the country to wean itself off fossil fuels. The contract between the dominant power company CEZ, where the Czech state has a majority stake, and KHNP was due to be signed on May 7 but EDF lodged a legal challenge at the regional court in the second-largest Czech city of Brno after the Czech anti-monopoly office dismissed its complaint about the tender. The regional court said on May 6 that the deal could not be signed before it rules on the EDF case, because then there would be no way to change it even if the French company won. CEZ and KHNP challenged that. The two new reactors will complement Dukovany's four 510-megawatt units that were completed in the 1980s. The total cost is estimated to be over over 400 billion koruna ($18 billion). The first new reactor is expected to become operational for a trial by 2036, the second about two years later.
Reuters
04-06-2025
- Business
- Reuters
Czech court rules $18 bln nuclear power plant deal with KHNP can go ahead
PRAGUE, June 4 (Reuters) - A Czech court has cancelled an injunction preventing a state-controlled company and South Korea's KHNP from signing an $18 billion contract to build two new nuclear power reactors, paving the way for the project to go ahead. The Supreme Administrative Court's decision, announced on Wednesday, means the biggest Czech procurement deal ever, and a key part of the country's drive to replace ageing coal and nuclear units can be signed, although it still faces court challenges and a potential European Commission probe. France's EDF had challenged the tender and won the injunction from a lower court last month, derailing the signing of the contract that was planned for May 7, with a ceremony prepared and a Korean delegation already en route to Prague. However, the state-controlled company EDU II building the plant and KHNP appealed that ruling. The court said on Wednesday it heeded those complaints and found the injunction issued by a lower court illegal and unverifiable. "By cancelling the preliminary injunction with today's judgment, the court lifted the ban on concluding a contract for the fulfillment of a public contract for the construction of a new nuclear power plant in the Dukovany location," the court said. Last year, power firm CEZ ( opens new tab picked KHNP to build two 1,000-megawatt units to expand its Dukovany nuclear plant, giving KHNP its first project in Europe. EDF has sought to overturn the decision on multiple fronts. The government, which will provide loans and a pricing scheme to make the project profitable, took an 80% stake in the EDU II firm running the project from CEZ in April, with CEZ retaining 20%. CEZ, EDF and KHNP had no immediate comment on Wednesday's ruling. The lower court which issued the injunction will hold a hearing on the matter of EDF's complaint against the tender itself on June 25. Separately, EDF, the only European company building nuclear plants, sought to cancel KHNP's win through the European Commission on competition grounds, suggesting KHNP's offer was so low that it implied state aid. KHNP has denied any state aid.
Korea Herald
08-05-2025
- Business
- Korea Herald
Korea-Czech nuclear deal advances despite court injunction
Czech PM vows swift action to avoid delays in $18 billion Dukovany project PRAGUE ― South Korea and the Czech Republic reaffirmed their commitment on Wednesday to advance their $18 billion nuclear power plant construction deal and expand cooperation across key industrial sectors, despite a court ruling that temporarily delayed the contract signing. The Czech government approved Elektrarna Dukovany II, a subsidiary of Czech state utility CEZ, to proceed with the contract to build two nuclear reactors with Korea Hydro & Nuclear Power at the "earliest possible timing," during a Cabinet meeting on the day. The deal, originally slated to be signed the same day, was postponed after a court injunction was granted in response to a legal challenge by French energy company EDF, an unsuccessful bidder in the tender. Czech Prime Minister Petr Fiala said the government would "avoid any delay of even a single day," expressing his willingness to complete all related procedures as soon as the legal obstacles are cleared. "Korean Hydro & Nuclear Power's proposal is the best in every respect and has been selected as the supplier," he said during a press conference following a meeting with South Korean Industry Minister Ahn Duk-geun and the Korean delegation. According to a statement released by the Czech government, Finance Minister Zbynek Stanjura affirmed the integrity of the bid evaluation process. 'We are convinced that the bid evaluation process was carried out correctly and in accordance with applicable laws. I believe the court will rule quickly so that we can continue preparing for the construction of new nuclear units and the state does not suffer any damage due to the delay,' he said. With the Czech government's backing, the deal is poised to move forward once CEZ's appeal against the injunction, filed by EDF, is accepted. The Czech state utility firm confirmed it plans to submit an appeal next week to the Czech Supreme Administrative Court against the Brno Regional Court's preliminary injunction ruling. The Korean minister also expressed confidence in keeping the bilateral agreement intact. 'While today's unforeseen circumstances prevented us from finalizing the main contract, I feel confident that -- like the saying 'the ground hardens after rain' -- this shared challenge has only strengthened the trust between our two countries,' Ahn said during a press briefing. The project — the largest public procurement initiative in Czech history — involves building two 1,055-megawatt reactors at the Dukovany site. It marks Korea's first nuclear export since 2009, with construction scheduled to begin in 2029 and the first reactor expected to be operational in 2036. Ahn emphasized that the Dukovany nuclear project could serve as a springboard for the two countries to jointly expand into third-country markets. Korea is currently constructing two domestic new nuclear reactors: the Shin Hanul 3 and 4. With the additional two reactors planned for the Czech Republic and ongoing talks with other countries, Korea's domestic ecosystem alone will not be sufficient to meet all demand, the minister explained. 'That is why we aim to leverage Czech assets — for example, turbine manufacturers like Doosan Skoda Power — and grow together as strategic partners in the global market,' Ahn said. Acknowledging the unexpected delay caused by the Brno Regional Court's preliminary injunction, Ahn described it as purely "procedural" and not indicative of any risk of cancellation. 'Once we clarify the facts to the Czech public, I believe this could become a positive turning point, especially for future projects like Temelin,' he said. 'Our goal is to present Korea as the most reliable long-term partner for 50-, 60- even 100-year nuclear projects.' During the meetings with Czech Prime Minister Fiala and Senate President Milos Vystrcil, the two sides agreed to strengthen their strategic partnership not only in nuclear energy, but also in advanced manufacturing, supply chains, energy, high technology and applied sciences. Among the 14 agreements and memorandums of understanding signed by the two governments and companies on Wednesday were a Korea-Czech battery cooperation deal and a commitment to strengthen joint responses to the forthcoming EU Battery Regulation.
