Czech Court Blocks $18 Billion Nuclear Deal Between CEZ and KHNP Amid EDF Legal Challenge

Court Ruling Delays Dukovany Nuclear Project Over French EDF’s Complaint

A Czech court has temporarily blocked a major $18 billion nuclear contract between CEZ and South Korea’s Korea Hydro & Nuclear Power (KHNP). This decision follows a legal complaint from France’s EDF, which lost the original bid.

The Brno Regional Court suspended the deal, which CEZ planned to sign this week. The court stated that EDF could unfairly lose its right to compete if the deal proceeds before litigation ends. The French utility had filed the case after the Czech competition authority (UOHS) rejected its earlier appeal.

The court’s ruling highlights the ongoing legal uncertainty surrounding the high-stakes project. CEZ may now appeal the decision to the Supreme Administrative Court.

Legal Dispute Jeopardizes Reactor Construction Plans at Dukovany

In 2023, CEZ selected KHNP to build two new 1,000MW reactors at the Dukovany nuclear power plant. Since then, EDF has pursued several legal actions, arguing that its offer was unfairly dismissed.

The Czech government recently acquired an 80% stake in CEZ subsidiary EDU II, which manages the Dukovany expansion. The project was exempted from standard EU procurement rules due to national security concerns. This exemption allowed CEZ to follow modified evaluation procedures during the bidding process.

Both CEZ and Czech authorities insist KHNP’s bid surpassed EDF’s in technical and financial evaluations. Despite this, EDF welcomed the court’s intervention, while CEZ expressed frustration. CEZ stated it would seek damages if the courts ultimately validate its selection of KHNP. KHNP has also reserved the right to pursue its own legal remedies.

Czech Prime Minister Petr Fiala has urged for a swift court resolution. Meanwhile, UOHS continues to defend its earlier decisions in favor of CEZ.

This legal standoff could delay the construction of crucial nuclear infrastructure in the Czech Republic. SuperMetalPrice will continue monitoring developments that impact the European nuclear and energy sectors.