07/02/2024
Source: Energy & Management Powernews
The government in Prague wants to put four more reactors out to tender. However, the procedure and the locations are unclear.
The Czech government wants to push ahead with the expansion of nuclear energy even more than previously planned. At the end of January, the cabinet of Prime Minister Petr Fiala decided to amend a tender for the Dukovany nuclear power plant, which was originally to be expanded by one reactor that would go into operation in 2036. Bids can now be submitted for the construction of a total of four reactors. The official information on the location and financing has so far been mainly vague. This is because the nuclear power plant in Temelin could also come back into play.
Two bidders are currently in the running: the French company EDF and the South Korean group KHNP. Russia's Rosatom and the Chinese state-owned China General Nuclear Corporation had already been excluded from the tender some time ago.
Shortly before the cabinet decision, the US company Westinghouse was also surprisingly rejected. A few days before the cabinet's decision, the company had made a commitment to the alliance of Czech energy companies to involve Czech companies in 70 percent of the construction of the potential reactors if it was awarded the contract. EDF and KHNP had promised a share of at least 65 percent.
According to Minister of Industry Jozef Síkela, Westinghouse has not submitted a suitable offer. Price guarantees and also proposals for sanctions in the event of a breach of contract, for example due to delays, had been requested. The US company had not submitted any documents in this regard. The US company had held out the prospect of building a reactor with an installed capacity of 1,200 MW and was able to point to relevant experience in China and the USA.
However, the remaining two bidders were also prepared to build comparable large-scale plants. KHNP is planning to use an APR 1000 unit, which is derived from the APR 1400 type and is in operation in South Korea and the United Arab Emirates. EDF, on the other hand, is planning the EPR 1200 reactor, which is based on the EPR 1600 model already in use in China and Finland and under construction in France and the UK.
Multiple units are cheaper as a package
The cost of building a reactor was last estimated at the equivalent of 6.44 billion euros per unit in 2020. In the meantime, it has become clear that building several units in a package is much cheaper than building just one, emphasizes Prime Minister Fiala. Compared to a single reactor block, a quarter of the preparation and construction costs could be saved.
A larger order would also bring more orders for Czech industry, according to Minister of Industry and Trade Jozef Sikela. According to him, two units could initially be built in Dukovany and then two more at the Temelin nuclear power plant.
Sikela does not even rule out the construction of further nuclear units. Looking to the future, large reactors will be needed in Dukovany and Temelin, as well as small and medium-sized reactors. In the Czech Republic, electricity demand will increase by two thirds to 100 billion kWh by 2050 compared to today, mainly due to the electrification of transportation and heating. At the same time, resources are ageing. Of the existing sources, only the Temelín nuclear power plant with units 1 and 2 will still be in operation in 2050.
Soviet-style nuclear power plants are currently in operation at two locations in the Czech Republic. Two reactors with a capacity of 2,164 MW are in operation in Temelin and four older reactors with a capacity of 1,792 MW in Dukovany.
EDF and KHNP are now to submit updated offers by April 15. These will be evaluated by the semi-state energy group CEZ by the end of May 2024. The contract with the winner of the tender is expected to be signed towards the end of this year or at the beginning of next year.
Author: Karin Rogalska
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