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A court has halted the Czech government’s $18bn purchase of two South Korean-made nuclear reactors after an eleventh-hour complaint from rival bidder EDF.
Executives from Korea Hydro & Nuclear Power, a subsidiary of state-run Kepco, were due to travel to the central European country on Wednesday to sign contracts after beating France’s EDF and Westinghouse of the US to the deal last year.
The new reactors would represent South Korea’s first major overseas nuclear power project since a $20bn contract to build four nuclear plants in the United Arab Emirates more than 15 years ago.
However, EDF last Friday filed a lawsuit to block the contract after losing an appeal with the Czech Republic’s antitrust watchdog, and a regional court on Tuesday said it had issued a “pre-emptive ruling” to stop the signing.
The deal cannot now be signed until the court passes verdict on the case.
French state-owned EDF is concerned by the precedent set by the Czech deal, as the Korean business plans to bid aggressively for several other projects across Europe.
It has started talks with Finland, Sweden and the UK, as more countries turn to nuclear to help them transition away from fossil fuels.
EDF’s completed and ongoing projects in Europe, including the UK’s Hinkley Point C and Finland’s Olkiluoto 3, have been hit by delays and significant cost overruns.
Kepco and the trade ministry in Seoul estimated Korea’s cost to build a nuclear power plant at $3,571 per kilowatt as of 2021, much lower than $7,931 for France and $5,833 for the US.
KHNP is due to build two units at the Dukovany nuclear plant operated by state-run ČEZ Group. The Czech Republic relies on nuclear power for 40 per cent of its electricity.
Petr Fiala, Czech prime minister, wrote on social media platform X that he acknowledged the court’s decision, but also that his government was “convinced the bid process was conducted correctly and in accordance with applicable laws”.
ČEZ did not immediately respond to a request for comment.
EDF welcomed the postponement, saying it “provides the necessary time for a thorough assessment of any potential infringement of its rights”.
It said it was “fully committed to pursuing all legal actions”, including an ongoing probe with the European Commission through its recently created Foreign Subsidies Regulation, adding that these proceedings “have been intensified in the last few days”.
It also said it expected the legal proceedings to help create a “significant localisation” that would lead to more local jobs being created by the project.
