Wedoany.com Report-Dec.26, The European Commission has launched an in-depth investigation into the financing plan for the construction of two new nuclear power units at the Dukovany Nuclear Power Plant in the Czech Republic, questioning whether it fully complies with EU state aid rules. In April last year, the EU approved the funding plan for a new reactor at the power plant. In July, Korea Hydro & Nuclear Power (KHNP) was selected as the contractor. In October this year, the Czech Republic expanded the plan to include two new units.

The Czech Republic plans to support the construction through three measures: providing low-interest, repayable state loans covering the entire construction cost; signing a 40-year two-way Contract for Difference (CfD) to ensure stable revenue; and establishing a mechanism to address policy changes and adverse impacts. While the European Commission acknowledges that the project contributes to decarbonizing the energy sector and diversifying the energy mix, it questions whether the proposed scheme can strike a balance between risk reduction and maintaining incentives for efficient behavior. It is also concerned about the impact of state aid measures on market competition, particularly as the design elements of the CfD are not clearly specified, making it impossible to fully assess whether the mechanism maintains effective incentives.

KHNP refuted allegations by Électricité de France (EDF) that its bid was unfeasible due to illegal state aid, stating to World Nuclear News: "We reiterate that the company's participation in the new nuclear power plant project in the Czech Republic strictly complies with all international regulations, including EU regulations. We emphasize that we have not received any subsidies that could harm or distort fair competition for this project." A European Commission spokesperson stated that they are evaluating a complaint filed by EDF under the Foreign Subsidies Regulation regarding KHNP's award of the tender and would not comment on the ongoing investigation.