KHNP Dismisses Subsidy Allegations in Czech Nuclear Bid

  • KHNP denies subsidy claims related to its bid for two nuclear reactors in the Czech Republic, countering accusations from EDF and Westinghouse.
  • The Czech government plans to finalise an agreement with KHNP by March 2025. Construction is slated for 2029, and trial operations are planned for 2036.
  • Legal appeals from competitors could delay the project, but KHNP remains confident in the legitimacy of its tender process.

Korea Hydro & Nuclear Power (KHNP) denied accusations of receiving subsidies in its successful bid to build two nuclear reactors at the Dukovany power plant in the Czech Republic. The project sparked legal challenges from French group EDF and American company Westinghouse, raising concerns about the fairness of the bidding process.

EDF called for transparency, insisting that the tender follow “fair trade principles.” Westinghouse accused KHNP of using its technologies without permission. In a statement to Agence France-Presse (AFP), KHNP rejected these claims, stating, “KHNP has not received any subsidies nor promises of subsidies from the South Korean government in the context of the tender for the construction of new nuclear units in the Czech Republic.”

KHNP clarified that European Union regulations on foreign subsidies do not apply to the project. The tender process started in March 2022, before the EU introduced new regulations in January 2023. These rules aim to prevent financial support from non-EU countries from giving companies an unfair advantage in the European market, but KHNP emphasised that this does not affect the Czech project.

Despite the legal challenges, the Czech government plans to sign an agreement with KHNP by March 2025. KHNP will begin constructing the reactors in 2029, with trial operations for the first reactor slated for 2036. The company remains committed to delivering on time while maintaining high-quality standards.

KHNP also secured partnerships with 76 Czech companies, which will supply 60% of the materials for the reactors. This collaboration strengthens local industries and deepens ties between South Korea and the Czech Republic.

EDF and Westinghouse’s legal appeals could delay the project, but KHNP expressed confidence in the legitimacy of its bid. The outcome of these challenges could influence KHNP’s standing in the global nuclear energy market.

KHNP plans to incorporate advanced technologies into the Dukovany reactors to improve energy efficiency and safety. These innovations align with the Czech Republic’s and the EU’s goals for reducing carbon emissions and supporting the energy transition.

KHNP’s victory in this bid marks a significant milestone as it expands into the international nuclear energy market. However, the appeals from competitors highlight the intense competition in this sector. The legal process could affect the project’s timeline and reshape the global nuclear power landscape.

The Dukovany project represents a crucial step in the Czech Republic’s efforts to modernise its energy infrastructure. For KHNP, this project offers an opportunity to showcase its nuclear energy capabilities and strengthen its international reputation. However, resolving these legal disputes will be critical in shaping the project’s future trajectory.

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