Nuclear power: South Korean company builds new Czech reactors

The South Korean group Korea Hydro & Nuclear Power Company (KHNP) is to build two reactors at the existing Dukovany nuclear power plant site. This was decided by the Czech government on Wednesday, giving KNHP preference over the second applicant, EDF. The two new reactor units are to be built simultaneously and go into commercial operation in 2038. In a statement, the Czech government put the construction costs at 200 billion crowns each, the equivalent of 7.9 billion euros.

Plans to build two more reactors in Temelin in addition to the one in Dukovany are now becoming more concrete. The Czech government is now negotiating this option with KNHP, according to reports. There were signs of this in February of this year. At the time, the government said that during the tender for Dukovany it had become clear that it would be more cost-effective to commission several reactors at once. A lot of work would not have to be done twice. Due to the economies of scale, the reactors could be built around 20 percent more cheaply. KHNP has developed a 1000 MWe modification of its APR1400 design for Dukovany.

There are already two pressurized water reactors of the VVER 1000/320 type in Temelin in southern Bohemia, less than 60 kilometers from the borders with Bavaria and Lower Austria, while the four reactors of the Soviet design VVER-440/213 in Dukovany in southern Moravia are just under 100 kilometers from Vienna.

Half of the electricity to come from nuclear power

"This project will ensure the Czech Republic's energy security and self-sufficiency for several decades," writes the government. The project is also important for the Czech economy. Both the economy and private households will be guaranteed a sufficient energy supply at an acceptable price. At present, one third of the Czech Republic's electricity needs are covered by nuclear power; in the future, this figure is set to rise to around half.

According to the press release, the price per MWh at which KHNP and EDF want to produce electricity was the decisive factor for the 200 experts involved in evaluating the bids of the two applicants, who were presented with around 200,000 pages of documents. All "known risks" were considered. KHNP had offered guarantees for the control of costs and the schedule for the entire project, Czech Industry Minister Jozef Síkela explained.

A concrete financing model for the planned new reactors in Dukovany does not yet exist. A working group of the Czech government is currently working on this and should be finished by the end of this year. So far, there is talk of a state loan with a term of 30 years, on which no interest will be paid during the period before the two units are commissioned. To protect investors from external risks, there will be a 40-year purchase guarantee for the electricity generated there, with a predetermined price and a compensation system based on price developments on the market.

(anw)