After the UAE, it is the first export of nuclear power in 16 years.

K Nuclear Power has accelerated its pace to capture the global market with the Czech Republic's new nuclear power plant project contract worth approximately 26 trillion Korean won [40 billion crowns]. It is evaluated that reconfirming K Nuclear Power's competitiveness again after being selected as the preferred negotiation partner over 10 months ago and finally sealing the deal proves its competitive edge, beating the nuclear power mainstay country the US and the European leader France.

This order marks 16 years since K Nuclear Power successfully contracted the Barakah nuclear power plant in the UAE in 2009 and officially entered the global nuclear power market. Observers believe that with cooperation expanding in the nuclear field with the US, K Nuclear Power's entry into the new nuclear market in Europe will further enhance its influence in the global nuclear power market.

The Czech government approved the construction budget for the new Dukovany nuclear power plant units 5 and 6 at a press conference held after the cabinet meeting on the 30th of last month, indicating that they would sign the final contract with Korea Hydro & Nuclear Power on May 7th. Czech Prime Minister Petr Fiala stated on the same day: "We will sign the contract with Korea Hydro & Nuclear Power on May 7th. This project will reduce energy prices and ensure the long-term competitiveness of the Czech industry." This is only 10 months since Korea Hydro & Nuclear Power was selected as the preferred negotiation partner for the new Czech nuclear power project last July. Previously, Westinghouse and Electricite de France (EDF), who were in a three-way rivalry with K Nuclear Power, raised objections, causing concerns that the contract might be significantly delayed or, in the worst-case scenario, fall through. However, the contracting party EDU II and Korea Hydro & Nuclear Power almost completed the contract by the end of March as planned.

Total project cost reaches 26 trillion Korean won.

The Czech Republic's new nuclear power plant project involves constructing two 1,000 MW units, Dukovany units 5 and 6, in the Dukovany area in central Czech Republic. The Czech government, which currently operates four 510 MW units at Dukovany and two 1,080 MW units at Temelin, has been advancing this project to meet the surging demand for electricity.

Including South Korea, five countries—America, Russia, France, and China—competed for this project. Influenced by the outbreak of the Russia-Ukraine war in February 2022, Russia and China were excluded, reducing the bidding process to a tripartite competition between South Korea, America, and France. After a tough competition with the "originator" Westinghouse, which built the world's first commercial nuclear reactor, and EDF, which operates in Europe's home turf, Korea Hydro & Nuclear Power emerged victorious. Prime Minister Fiala stated that Korea Hydro & Nuclear Power won hearts by engaging with the locals based on its capabilities in "on-time and on-budget" execution and "customized customer design," adding that "in all aspects, South Korea's conditions were excellent."

However, difficulties arose during the contract negotiations after being selected as the preferred negotiation partner. Westinghouse, which failed to qualify due to inadequate qualifications in January last year, raised issues regarding intellectual property rights by claiming Korea Hydro & Nuclear Power used its source technology; EDF, which faced backlash for advocating that "nuclear plants in Europe should be built by European companies," questioned procedural matters and filed an objection with the Czech Antitrust Authority. Facing such actions from overseas competitors, some expressed concerns about whether the contract could be signed. However, Westinghouse reached a consensus with Korea Hydro & Nuclear Power to terminate the intellectual property dispute in January this year, withdrew the complaint, and the Czech Antitrust Authority ultimately dismissed EDF's objection last month, removing the obstacles.

This large-scale project, with an estimated total project cost of 26 trillion Korean won [approximately 132.1 billion yuan], is set to begin construction in 2029 and complete in 2037. It will play a significant role in reviving the previously stagnant nuclear power ecosystem. Korea Hydro & Nuclear Power plans to sign subsequent contracts related to design, construction, and material procurement with KEPCO Engineering & Construction, Daewoo Construction, and Doosan Energy after signing the final contract. Professor Jeong Yong-Hoon [name phonetically] of KAIST said: "We expect domestic nuclear power supply chain companies to benefit. The Czech Republic values timely and budgeted completion highly." If the progress of Dukovany units 5 and 6 goes smoothly, expectations for signing additional contracts for Temelin units 3 and 4 will also increase.

Breaking the dumping controversy

The Czech government stated today that it will purchase 80% of the shares of the contracting party EDU II while confirming the signing date. Through the nationalization of EDU II, which oversees the Dukovany new nuclear power plant project, the government is managing the project directly, accelerating the EU Commission's approval of the procedure. Unlike a subsidiary of Czech Electricity, which is a publicly listed company, as a state-owned enterprise, government financial support will be smoother. Finance Minister Zbynek Stanjura of the Czech Republic stated on the same day: "From signing the contract to the start-up of the unit, the construction of the new nuclear power plant will be funded through government loans." Previously, there were suspicions that Korea's financial institutions might provide funds at low interest rates to engage in "dumping" exports for Dukovany unit 6, but this statement by the Czech government has dispelled such controversies.

Professor Jeong Tong-Ho of Chung-Ang University said: "Acquiring shares in EDU II means that the Czech government will steadily advance the project without wavering due to funding issues."

Source: Chosun Ilbo

Original article: https://www.toutiao.com/article/7500050809275662858/

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