The shadow economy
16 May 2025
23 May 2025
The construction of the new nuclear unit at Dukovany has run into a serious legal complication in the past week. The Regional Court in Brno blocked the signing of the final contract between the state and the winner of the tender, the South Korean company KHNP. The move followed a lawsuit by France's EDF, which challenged the tender process and the decision of the Office for the Protection of Competition. The court issued an interim measure which effectively froze the completion of the multi-year tender. As a result, CEZ cannot sign the final contract with the Korean party and the project, which should have started to take shape, is again delayed.
EDU II, the company that is managing the construction, and KHNP immediately responded by filing a cassation complaint with the Supreme Administrative Court. According to ČEZ CEO Daniel Beneš, any delay could result in hundreds of millions of dollars in damages due to delays and the need to adjust related contracts and preparations. ČEZ and the government have long identified the construction as a key project for ensuring the country's energy security. Nevertheless, the project continues to come under criticism - mainly for the lack of involvement of Czech companies, with only a third of the volume of work guaranteed so far instead of the originally declared 60%.
At the same time, cooperation with representatives of Czech industry continues. KHNP has signed framework agreements with Czech partners such as Škoda JS, ÚJV Řež and Metrostav. These agreements include the supply of technological units, technical documentation and preparatory construction work. Despite the legal uncertainty, this maintains the continuity of the project and paves the way for a smoother start of construction if the courts clear the way for the main contract to be signed in the coming weeks.
The construction of the nuclear unit at Dukovany is critical not only for energy self-sufficiency but also because of the risk of electricity supply shortages in the coming decades. The Czech Republic is struggling with the gradual shutdown of coal-fired power plants and unstable generation from renewable sources cannot guarantee grid stability on its own. Events such as the recent blackout in Spain clearly show how fragile the energy balance is without sufficient stable sources. Nuclear energy is irreplaceable in this context - as an emission-free, reliable and predictable long-term source that can ensure a secure electricity supply even in crisis situations.