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The court has stopped the Czech government from purchasing a $18 billion South Korea-made nuclear reactor after an 11-hour complaint from rival bidder EDFs.
Executives from Korea Hydro & Murucle Power, a subsidiary of state-run KEPCO, were scheduled to travel to a Central European country on Wednesday after defeating France’s EDF and Westinghouse to US Westinghouse last year.
The new reactor represents South Korea’s first major overseas nuclear power project since its $20 billion contract to build four nuclear power plants in the United Arab Emirates more than 15 years ago.
However, the EDF filed a lawsuit blocking the contract after losing its appeal with the Czech Republic’s antitrust watchdog last Friday, and on Tuesday the district court issued a “first sanction” to stop the signature.
You cannot sign a contract until the court passes a verdict on the case.
The French state-run EDF is concerned with the precedent set by Czech deals as Korean businesses are planning to actively bid on several other projects across Europe.
Consultations have begun with Finland, Sweden and the UK. This is because more countries will turn to nuclear to support the transition from fossil fuels.
Completed projects of EDF in Europe, including the UK’s Hinckley Point C and the Finland’s Orkiruoto 3, have been hit by delays and significant cost overruns.
Seoul’s Kebko and the Ministry of Trade estimated South Korea’s costs to build nuclear power plants at $3,571 per kilowatt as of 2021, falling below $7,931 in France and $5,833 in the US.
KHNP plans to build two units at the Ducovany Nuclear Power Plant, run by the state-run Chez Group. The Czech Republic relies on nuclear power for 40% of its electricity.
Czech Prime Minister Petr Fiara has approved the court’s decision on social media platform X, but wrote that his government “confidently believes that the bidding process was carried out correctly in accordance with applicable laws.”
Chez did not immediately respond to requests for comment.
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The EDF welcomed the postponement and said it would “provide the time necessary to thoroughly assess potential infringement of its rights.”
It said it was “fully committed to pursuing all legal actions,” including an ongoing investigation with the European Commission through the recently created foreign grant regulations, adding that the lawsuits have been “strengthened in the past few days.”
He also said that legal procedures are expected to help create “critical localizations” that will lead to more local work being created by the project.
