Czech Republic’s state-controlled entity EDU II has signed a $18bn contract with South Korea’s KHNP for the construction of two new 1,000MW nuclear reactors after a high court lifted an injunction. The move seeks to expand the country’s nuclear energy capabilities.
The development comes as Prime Minister Petra Fiala announced that a legal hurdle obstructing the project had been overcome following a favourable high court decision, as reported by Reuters.
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The deal represents the nation’s largest-ever procurement and forms an integral component of its strategy to phase out older coal and nuclear facilities.
After the signing of the agreement, which took place digitally between EDU II and KHNP representatives, Prime Minister Fiala stated at a news conference: “We have removed all doubts and legal obstacles that prevented the nuclear power plant project from being launched.”
The Dukovany site with additional units marks KHNP’s initial venture into Europe.
The first unit will be completed by 2036.
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By GlobalDataThe losing bidder, the French company EDF, had contested the tender and successfully obtained an injunction from a lower court in May 2025..
This legal action disrupted the scheduled signing of the contract, which had set for 7 May. A ceremony had been arranged, and a Korean delegation was already on its way to Prague.
EDU II, in which CEZ held a controlling interest until May, and KHNP appealed that decision, and on Wednesday, 28 May the court declared the injunction illegal and unverifiable.
A representative from KHNP stated that the court’s decision “clears the way for the timely advancement of this strategically important project.”
EDF has refrained from making immediate comments on the court rulings.
Approximately 40% of the Czech Republic’s electricity is generated by its two existing nuclear power plants. However, the country’s power exports are decreasing as the surplus diminishes, largely due to the closure of coal-fired power plants.
The estimated cost for constructing two new nuclear units is Kč 407bn ($18.75bn) in “overnight” costs, excluding financing costs and potential increases due to inflation clauses in the contracts and exchange rate variations.
