24-trillion-won contract to build nuclear power plants in the Czech Republic should be steppingstone for normalization of nuclear power plant industry and SMR

The “Team Korea” consortium, led by Korea Hydro & Nuclear Power, was selected as a preferred bidder for a project to build new 24-trillion-won nuclear power plants in the Czech Republic. This is the first time South Korea entered the European market by beating France, a strong leader in the nuclear power plant industry, which will serve as an important opportunity for the country to build its K-nuclear power plant export market. In addition, the new contract, which will provide stable demand by 2036 when the newly built power plants in the Czech Republic begin commercial operation, will serve as the foundation to normalize the nuclear power plant industry, which struggled due to the previous administration’s denuclearization policy, and for South Korea to lead the next-generation small modular reactor (SMR) market.

The two new power plants to be built in the Czech Republic by Korea Hydro & Nuclear Power, along with Doosan Enerbility and Daewoo E&C, are 100-megawatt APR 1000. This is the first foreign contract to be won by South Korea since the Barakah nuclear power plant in the United Arab Emirates in 2009. The new contract is worth more than 20 trillion won of the Barakah plant, and the contract amount will be much larger if South Korea wins the contract for two additional power plants to be ordered by the Czech Republic in the next five years.

The Czech government cited Korea Hydro & Nuclear Power’s capability to build power plants before the deadline within the limited budget as one of the reasons for selecting the bidder. The organization’s experience of completing the Barakah plat before the construction deadline under poor conditions in the desert was appreciated. As the construction of a nuclear power plant is a difficult task, even companies in advanced countries such as France sometimes take longer than ten years to finish the project before the promised deadline. South Korea, which can build a nuclear power plant for less than half the cost of France by reducing the construction period, has price competitiveness. South Korean nuclear facilities are also ranked the highest in the world in terms of safety, including any potential accidents.

The contract is especially meaningful as it was won during a time when the nuclear power plant is garnering renewed appreciation in the world as a stable energy source without carbon emissions as the artificial intelligence technology and electric cars require a large amount of electricity. Italy, which was the first country to denuclearize in the world, officially announced to reintroduce nuclear power plants since its denuclearization announcement in 35 years, and Sweden, which has been reducing nuclear facilities since 1980, announced a plan to build new nuclear power plants. In particular, South Korean companies are bidding to win contracts for nuclear facilities in Poland and Romania.

South Korea is one of the few countries in the world capable of building next-generation SMRs for nuclear power plants, which generate less electricity but significantly improve safety compared to traditional nuclear power plants. With the newly won contract in the Czech Republic, the South Korean government and related companies should make further efforts to develop Korean SMRs to ensure price competitiveness, construction capabilities, and outstanding technological capabilities.