France’s nuclear ambitions have taken a heavy hit as the Czech Republic officially awards its multi-billion-euro reactor contract to South Korea’s Korea Hydro & Nuclear Power (KHNP). This setback marks a significant loss for EDF, France’s energy giant, in what was once seen as a promising expansion of its nuclear footprint in Europe. The defeat also signals a shift in the global nuclear landscape, with Asian players making inroads in a market long dominated by Western companies.
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EDF’s Legal Challenge Falls Short in Czech Republic
On April 24, 2025, the Czech Competition Authority rejected EDF’s appeal against the awarding process that favored KHNP for the country’s new nuclear reactors. The ruling was firm: because the project fell under a special security exemption, it didn’t follow the usual public procurement rules, leaving no legal ground for EDF’s contestation. As Petr Misna, president of the Authority, explained, “The law does not allow objections to acts carried out outside of the formal procurement process.”
EDF also raised concerns over foreign subsidies and whether the economic efficiency principles were properly respected. These arguments were dismissed as outside the jurisdiction of the Authority, effectively closing the door on EDF’s legal avenues for now.
South Korea’s KHNP Edges Out EDF and Westinghouse
Originally, three heavyweights were in the running: EDF with its EPR1200, Westinghouse offering the AP1000, and KHNP pitching its APR1000 reactor. Westinghouse was eliminated early on for failing to meet technical criteria, leaving a fierce contest between France and South Korea.
In July 2024, the Czech government chose KHNP, citing a more competitive price and superior overall conditions. The deal, valued at roughly €8.6 billion per reactor, included an advantageous offer to build two units simultaneously. Negotiations aimed to finalize the first contract by March 2025, but legal challenges delayed the timeline.
The “Four-for-One” Strategy Shifts the Stakes
Initially, the Czech plan was to build just one new reactor at Dukovany. However, in October 2023, the government pivoted to demand firm bids for four reactors in total: an additional unit at Dukovany and two more at Temelín. This bold move was designed to slash overall costs by an estimated 25%, bringing the total investment to about €25.8 billion for all four reactors.
Prime Minister Petr Fiala defended the shift as a more rational and economic approach that also bolsters the nation’s long-term energy security. For a country where nuclear power already supplies roughly one-third of electricity—via four older reactors at Dukovany and two more at Temelín—the stakes could not be higher.
A Strategic Win for the Czech Republic
The nuclear renewal plan is crucial for the Czech Republic to reduce its dependence on fossil fuels and secure a cleaner, more stable energy future. The timeline is ambitious: construction expected to start by 2029, testing by 2036, and full commercial operation by 2038. KHNP faces strict deadlines and severe penalties if it fails to deliver on time.
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This decision also highlights the Czech Republic’s pragmatic approach, prioritizing cost efficiency and timely delivery over national pride or legacy partnerships.
A Tough European Setback for EDF
For EDF, the loss stings deeply, especially as the company hoped to build momentum with its EPR reactors following positive developments at Sizewell C in the UK. However, the smaller, more cost-effective APR1000 from KHNP clearly appealed to the Czech government’s budget-conscious mindset.
While EDF can still appeal to a regional court, the legal framework appears tightly controlled, making a successful challenge unlikely.
The Rise of Asian Nuclear Power Players
This episode underscores a growing trend in the nuclear sector: Asian firms are becoming formidable competitors on the international stage, gradually eroding the dominance that European and North American companies have held for decades. KHNP’s victory in the Czech Republic reflects this shift and raises questions about the future balance of power in global nuclear energy markets.
France’s Strong Footprint in Czech Industry Beyond Energy
Despite this setback, French companies remain a significant presence in the Czech Republic, especially in sectors like automotive, construction, energy, and financial services. With some 550 to 900 French subsidiaries employing over 70,000 people and generating around €18 billion in revenue, groups like PSA (now Stellantis), EDF, Veolia, and Vinci continue to fuel a dynamic economic relationship. France ranks as the third-largest foreign investor in the country, with direct investments estimated at €13.3 billion.
This vibrant cooperation is a reminder that while one door closes, many others remain wide open for French industry in the heart of Europe.