In brief
Korea Hydro & Nuclear Power Co. (KHNP) ended talks with the Daewoo – Doosan consortium over contract terms for the Czech Republic’s Dukovany nuclear plant. The dispute centers on revised contract conditions that the consortium deems unfair, prompting KHNP to start a new tender process. The Czech government has pledged support for the project’s continuation.
Korea Hydro & Nuclear Power Co. (KHNP) announced on 29 October 2026 that it would terminate its negotiations with the local Daewoo Engineering & Construction and Doosan Enerbility consortium over the construction contract for the Dukovany nuclear plant in the Czech Republic. The two‑party talks have collapsed after KHNP introduced revised contract terms that the consortium said were unfavourable and impossible to incorporate into the existing design of the two 1,000‑megawatt APR1000 reactors.
The Dukovany project, worth approximately 25 trillion won (US$17½ billion), was awarded to a South‑Korean‑led team last year after a competitive selection. The APR1000, a reactor design developed in South Korea, is now slated for construction in Slovakia’s seat of energy ambition, a move that could help the Czech Republic move toward a lower‑emission electricity grid.
Nuclear power is a controversial yet pivotal part of many European countries’ climate strategies. While it produces no direct CO2 during operation, concerns over safety, waste management and high construction costs often temper its appeal. In the Czech context, a new APR1000 would add 2,000 MW of baseload capacity, a critical boost to a grid that remains heavily reliant on fossil fuels.
KHNP said the disagreement stemmed from “key contract terms” that the operator had rewritten in early October. The consortium’s president – whose name was not disclosed – complained that the new clauses would shift unanticipated design‑change costs onto contractors. The new terms, which KHNP called necessary to meet evolving safety regulations, were rejected after the consortium requested an extension of the 29 October deadline for reply.
The local consortium released a statement saying it regretted the contract’s collapse and warned that the revised terms would unfairly burden construction contractors with extra costs associated with design changes. It also alleged that KHNP had violated the principle of good faith by refusing to re‑enter talks unless the consortium accepted the new conditions. The letter urged the nuclear operator to resume negotiations in what it called the broader national interest.
In a press release, KHNP said it would formally end the negotiations and initiate a new tender to select a construction contractor. The company stressed that the termination does not bring the Dukovany project to a halt, and that it is already preparing follow‑up measures to ensure the plant’s timeline and budget remain on track.
Under the new tender process, KHNP will publish a request for proposals and solicit bids from qualified construction firms. While the exact timetable remains undetermined, industry observers warn that the delay could push the first reactors’ completion by several years, potentially affecting the Czech Republic’s target for reducing CO2 emissions by 2030.
Industry Minister Kim Jung‑kwan posted on Facebook that he “respects KHNP’s decision and pledged government support for the successful construction of the nuclear power plant in the Czech Republic.” The minister’s comment signals that the government will back the new tender process and remains committed to achieving the project’s climate‑friendly goals.
If the new tender process stalls, the Czech Republic could face increased reliance on coal and natural gas for the remainder of the decade, widening the gap between its climate‑mitigation commitments and actual emissions. Conversely, a timely completion of the APR1000 would provide a low‑carbon power base that could offset the need for fossil‑fuel peaking plants during periods of high demand.
Beyond the technical disagreements, the dispute underscores the broad environmental debate that surrounds nuclear power. While the plant’s operation would contribute zero CO2 to the grid, the large capital outlay, long construction timelines, and waste‑management responsibilities remain significant environmental and social considerations for both host countries and sourcing nations like South Korea.
Moving forward, the outcome of the new tender will determine whether the Dukovany project continues to align with the Czech Republic’s sustainability trajectory. The decision set in motion today may shape the pace at which the country expands clean baseload capacity, with wider implications for regional energy security and climate resilience.
