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Publish Date: Tue, 27 Aug 2024, 11:36 AM
- Companies appeal selection of KHNP
- KHNP says dispute with Westinghouse won't affect Czech work
- CEZ says it will help anti-monopoly office with investigation
PRAGUE, Aug 27 (Reuters) - EDF and Westinghouse have appealed against the Czech government's decision to award a multibillion-dollar nuclear power plant tender to South Korea's KHNP, the Czech anti-monopoly office said on Tuesday.
The appeals are a potential sticking point for the Czech Republic's largest-ever energy investment as it seeks to expand nuclear energy in the coming decades while coal-fired power plants are de-commissioned.
The government in July picked Korea Hydro & Nuclear Power (KHNP) to build two new nuclear power units, and possibly more, choosing it over France's EDF in the final round of tender that U.S. group Westinghouse was not invited to join.
A spokesperson for Czech anti-monopoly office UOHS said it would study the appeals that took issue with some steps in the selection process.
EDF did not immediately comment.
Westinghouse said in a statement it had appealed on the grounds that KHNP did not have a licensing agreement to export its reactors, which are based on Westinghouse technology.
That has been the subject of an ongoing international arbitration process, and Westinghouse said a decision from the arbitration was not expected before the second half of 2025.
KHNP said in a statement that "KHNP will respond sufficiently to the dispute with Westinghouse to avoid negative impacts on the Czech nuclear project".
The Czech Republic has sought to finalise contract details with KHNP by the first quarter of next year. Earlier this year it widened the tender, which has been run by 70%-state-owned energy company CEZ (CEZP.PR) , opens new tab, to have the option to build multiple units, up from an originally planned one.
CEZ said it had also received objections from bidders in recent weeks and was ready to provide answers to UOHS in its investigation.
Czech governments have long sought to build up the country's nuclear power fleet. A previous tender was abandoned in 2014.
The price for one new unit when building two at the same site was estimated at 200 billion crowns ($8.9 billion) at current prices, the government said last month.
CEZ aims to start construction of the first of two new units at its Dukovany nuclear power plant later this decade, with expected completion in 2036. Two more units at CEZ's Temelin plant could possibly be added later.
Nuclear power is seen composing half the country's generation mix in the future, up from around 37% now.
($1 = 22.4290 Czech crowns)
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https://www.reuters.com/business/energy/edf-westinghouse-appeal-against-czech-nuclear-tender-2024-08-27/