Czech concerns over costs and delays cast shadow on French EDF nuclear bid

In the race to secure a nuclear unit tender for the Dukovany power plant, Czechia express concerns over cost overruns and delays, casting a shadow on French company EDF’s bid.

French President Emmanuel Macron visited Prague on Tuesday to support the French company EDF in its efforts to win a contract to build new nuclear units at the Dukovany power plant in the Czech Republic.

Particularly, Macron stressed that Czechia should prefer European partners instead of non-European ones, such as the US or South Korean companies, who are also interested in the tender. However, EDF faces major delays and price increases in all its current projects.

Jozef Síkela, the Czech minister of industry and trade, stressed the need for contracts to cover costs and deadlines.

“We will try to achieve as much contractual coverage as possible,” Síkela told Euractiv Czechia. He also said the contract with the potential nuclear unit supplier should leave no room for changes in the final price and technical parameters and guarantee the project’s timely completion.

According to the minister, the Czech Republic will evaluate bids based on several factors. In addition to price and schedule, it will also consider safety guarantees and potential subcontractors.

Meanwhile, a Czech NGO – sceptical of nuclear energy in general – warns against the potential French supplier.

“The French nuclear industry is facing really serious problems,” said Edvard Sequens, an energy consultant with Calla – the Association for the Preservation of the Environment. “It is unable to build new reactors on time and at the promised price. It lacks the sufficient professional capacity to maintain its ageing domestic nuclear power plants (and) if it has to build new ones, they will probably take precedence over foreign contracts.”

“Moreover, for Dukovany, EDF offers a reactor that does not yet exist. (This is) reason enough to look at Macron’s nuclear mission in Prague with a critical eye,” he added.

The tender now has two leading bidders – EDF and the South Korean company KHNP – who have successfully submitted their bids. The bid of the US company Westinghouse did not meet the conditions set by the Czech government, but it has until 15 April to submit a new bid.

“At the moment (…), we are not in a position to evaluate the offer from Westinghouse,” Síkela said.

“We are interested in the lowest possible price, the highest possible guarantees and the highest possible guarantee that it will be built on time. And if Westinghouse comes up with such an attractive offer (…), it will probably complicate my life, and I will probably have to deal with lawyers (…), but if it would lead to better conditions for the Czech Republic, I’m happy to let it complicate my life,” he added.

The contract with the selected company is expected to be signed at the end of 2024.

(Aneta Zachová, Barbora Pištorová | Euractiv.cz)