The Czech Republic’s Supreme Administrative Court has overturned a regional court ruling that blocked the signing of a major contract for the construction of two new nuclear reactors at the Dukovany plant. The €18 billion deal between the Czech energy company Elektrárna Dukovany II (EDU II), part of the ČEZ Group, and South Korea’s Korea Hydro & Nuclear Power (KHNP) is based on now free to proceed. This project represents the largest infrastructure investment in the country’s history.

The court’s decision lifts an injunction that was imposed following a complaint by French energy company EDF, which lost the tender process. EDF argued that the Czech government’s direct support for the project might constitute illegal state aid under EU rules and has also filed a complaint with the European Commission. Despite this, the Czech government and ČEZ remain confident that the deal will withstand any further legal scrutiny.

Prime Minister Petr Fiala welcomed the ruling, calling the nuclear expansion essential for ensuring energy security and reducing carbon emissions. KHNP expressed its readiness to begin the project immediately, while the Czech government emphasized that this step is crucial for the country’s long-term energy strategy. A separate legal challenge by EDF remains pending, with a court hearing scheduled for later this month.

Source: CTK

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo