Czech Nuclear Plant Contract Faces EC Scrutiny Over Foreign Subsidy Concerns

Wedoany.com Report-May 14, The European Commission has requested that the Czech Republic delay finalizing a significant nuclear power plant contract with South Korea’s KHNP, valued at a minimum of $18 billion. The request follows a complaint from France’s EDF, a competing bidder, regarding the bidding process and concerns about potential foreign subsidies.

The contract in question is part of the Czech Republic’s largest public procurement, aiming to phase out coal and update old nuclear facilities.

A Commission spokesperson, responding to inquiries first reported by the Czech news agency CTK, stated: “We are raising concerns under the rules of the foreign subsidies regulation regarding the South Korean bidder.” The spokesperson clarified that no timeline has been established for the investigation, and an in-depth probe has not yet begun.

The contract is part of the Czech Republic’s largest public procurement initiative, focused on phasing out coal and modernizing aging nuclear facilities. A Czech regional court has temporarily halted CEZ, a majority state-owned electricity company, from signing with KHNP until it addresses EDF’s concerns about the tender process.

Czech Prime Minister Petr Fiala noted that the letter from Commissioner for Industrial Strategy Stephane Sejourne does not reflect the European Commission’s official stance and is not legally binding. KHNP, in response, expressed confidence in its adherence to the bidding procedures.

EDU II, a CEZ subsidiary responsible for constructing the plant, urged EDF to disclose its own bid, describing EDF’s complaint as speculative. The Czech government recently agreed to acquire an 80% stake in EDU II from CEZ to reduce the utility’s financial burden, with CEZ retaining a 20% share and managing the plant’s construction.

EDU II suggested that EDF’s actions might aim to hinder the nuclear plant’s development. CEZ has warned it will seek compensation from EDF for any delays, which could jeopardize the planned 2036 completion of the first of two 1,063 MW units.

This situation highlights efforts to ensure fair competition in major energy projects while supporting the Czech Republic’s transition to sustainable energy infrastructure through careful project oversight.