In July 2024, Czechia chosen South Korea’s state-run utility firm, Korea Hydro & Nuclear Energy (KHNP), as the preferred bidder to construct new nuclear reactors. KHNP was chosen to guide the development of three nuclear energy reactor models at Dukovany and Temelin, initiatives valued at approximately $17.3 billion. This choice was surprising as Électricité de France (EDF) has lengthy dominated the European nuclear power sector. Finalization of a deal is anticipated in March 2025
Czechia is now South Korea’s second profitable abroad bid within the nuclear energy sector, after building the Barakah Nuclear Energy Plant within the UAE. Nonetheless, this deal is South Korea’s first nuclear energy plant deal in Europe. This deal marks a transition within the world power market and opens a brand new alternative for each Czechia and South Korea.
Any nuclear energy challenge is intently associated to each political and financial points. Within the period of local weather disaster, decreasing carbon emissions is a key concern to deal with local weather change and its penalties. Czechia determined to part out coal by 2033 to cut back carbon emissions, and the choice to construct new nuclear energy crops is a part of Czechia’s shift to new power sources. Czechia Prime Minister Petr Fiala revealed that Czechia wanted to find a solution to provide secure energy supplies at an affordable value.
Additionally, geopolitical points had been thought of in Czechia’s resolution to develop new nuclear energy crops. Because of the Ukraine warfare, power safety is a urgent concern, significantly in jap Europe the place Russian oil and gas had been vital earlier than 2022. In accordance with Fiala, Czechia selected to spend money on nuclear energy as a strategy to both advance energy security and meet worldwide local weather objectives.
For the reason that Ukraine warfare, nuclear energy has regained its momentum as a dependable power supply in Europe. The South Korean authorities, which has pledged to export 10 more nuclear power plants by 2030, is eager to take benefit. Profitable the Czechia bid is a major alternative to construct the South Korean nuclear business’s fame within the European nuclear market. The nuclear challenge is anticipated to bring benefits to the Czech economy with the Czech corporations’ participation. Furthermore, the 2 nations will cooperate for further investments and commerce relations past this deal.
South Korea appears set to efficiently transfer ahead as a worldwide nuclear exporter after securing its first new abroad nuclear energy challenge since 2009. Nonetheless, the take care of Czechia has not been finalized but, and South Korea faces a number of challenges on the highway forward.
First, a U.S. firm contested KHNP’s profitable bid, submitting an attraction in August 2024. Westinghouse claimed that the expertise for constructing ARP-100 reactors could not be transferred to a third party with out its permission. In accordance with Westinghouse, KHNP based mostly its bid on proprietary expertise, which the Korean agency does not have the right to transfer and sublicense.
The legal battle started in October 2022 when Westinghouse filed a lawsuit in opposition to KHNP and its dad or mum firm, the Korea Electrical Energy Corp (KEPCO). The problem solely intensified after KHNP was efficiently chosen as the popular bidder for Czechia’s nuclear energy reactors. Thankfully, Westinghouse and KHNP/KEPCO reached a settlement of their mental property dispute in January, permitting “each events to maneuver ahead with certainty within the pursuit and deployment of latest nuclear reactors” – presumably together with the Czechia challenge.
One other concern that might complicate the Czechia deal is South Korea’s home political turmoil. On December 3, 2024, President Yoon Suk-yeol declared martial regulation; he was subsequently impeached and arrested on revolt prices. Whereas South Korea awaits the ultimate ruling from the Constitutional Court docket on Yoon’s impeachment, the nation’s nuclear business hangs in the balance. As president, Yoon has overseen a serious push to advertise nuclear power, however leaders from the opposition Democratic Get together – together with Yoon’s predecessor in addition to the DP’s candidate to succeed Yoon – are decidedly anti-nuclear.
Nonetheless, Czechia affirmed that the development of nuclear energy crops will not be affected by South Korea’s political crisis.
Czechia-South Korea nuclear deal marks a major shift within the world power order, significantly in Europe. Each side has proven clear political will to maneuver the settlement ahead, overcoming a number of hurdles already. This partnership opens a brand new part within the world nuclear market. Amid Western dominance within the nuclear business, South Korea has obtained a springboard to reinforce its standing as a serious exporter within the world nuclear power market.
