South Korea has officially secured the final contract for the new Dukovany nuclear power plant project in the Czech Republic.

According to sources from the nuclear power industry, Czech state utility company CEZ finalized the deal by electronically signing the contract signed earlier by the Korean side on Wednesday, local time.

Czech Prime Minister Petr Fiala also noted on Wednesday that a new nuclear plant contract was signed between Korea Hydro & Nuclear Power Co. (KHNP), Korea’s state-run nuclear power agency, and EDU II, the operator of Dukovany II Nuclear Power Plant.

The contract, which is valued at 400 billion Czech koruna ($18.41 billion), had been stalled since it fell through on May 7. The Czech Supreme Administrative Court later ruled in favor of KHNP.

The court dismissed the injunction request filed by French electricity utility Électricité de France SA (EDF) which had sought to block the contract between KHNP and EDU II.

Following the ruling, the Czech government immediately signed the contract, bringing it into effect.

Sources viewed this move as an active step to prevent any further obstruction from EDF.

The French electricity utility also filed a complaint with the European Union (EU), claiming that KHNP violated the Foreign Subsidies Regulation (FSR).

The EU is currently reviewing whether to launch an official investigation.

“The Czech government seems to have made the decision to finalize the contract to avoid the risk of indefinite delays if the European Commission were to begin its own investigation,” a source said.

The Czech government had already completed all necessary administrative procedures.

It granted preliminary approval of the nuclear contract during a cabinet meeting on May 7, allowing it to be signed as soon as the court made a favorable ruling.

Prime Minister Fiala stated at the time that “we want to ensure that there is not even a single day of delay in signing the contract.”

Construction of the Dukovany plant is scheduled to begin in 2029, with trial operations in 2036 and commercial operations targeted for 2038.

KHNP, serving as the main contractor, will work with KEPCO Engineering & Construction Co. (nuclear design), Doosan Enerbility Co. (main equipment supply), Daewoo Engineering & Construction Co. (construction), KEPCO Nuclear Fuel Co. (nuclear fuel), and KEPCO KPS (commissioning and maintenance) to form a Team Korea, which will provide a full package of services including design, procurement, construction, commissioning, and fuel supply for the 1,000-megawatt (MW) APR1000 large-scale reactor

The Czech government has also agreed that if it decides to build new reactors at the Temelín site (units 3 and 4) within five years of the Dukovany contract date, KHNP will be granted preferred bidder status.

If Team Korea secures these two additional reactors along with Dukovany, the total contract value could reach as high as 50 trillion won ($36.71 billion).

This nuclear contract marks a major milestone for Korea - its first such win in 16 years since the Barakah project in the United Arab Emirates (UAE) in 2009. It also signifies a strategic foothold in Europe, which is embarking on new commercial nuclear projects.

The contract also holds symbolic significance, as Korea, which imported European-style reactors in 1982, has now evolved into a country exporting nuclear power plants back to Europe.

The bidding process was fiercely competitive, involving top global nuclear powers.

The United States, widely regarded as the world‘s leading nuclear power country, and France, a dominant force in the European nuclear alliance with extensive experience in the region, were seen as strong contenders.

However, the Czech government ultimately favored Team Korea, citing its strength in delivering projects “On Time, On Budget.”

Sources also pointed to the highly attractive proposal submitted by Team Korea as a factor that swayed the Czech government.

Czech authorities had consistently evaluated KHNP’s bid as the best.

CEZ estimated that the power generation cost per MW from rival bidder U.S. nuclear power company Westinghouse Electric Company LLC would be 110 to 135 euros, and from EDF over 100 euros.

In contrast, KHNP proposed a cost of up to 90 euros per MW - more than 10 percent lower than its competitors.

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