French state-owned power company EDF has suffered a significant setback after losing a bid to build at least two new nuclear reactors in the Czech Republic. The project, awarded to Korea’s KHNP, marks a major blow to Europe’s sole nuclear power plant builder at a time when the company desperately needed a confidence boost.
A Critical Blow
EDF, which had hoped to secure its first contract since the Hinkley Point project in Great Britain in 2016, faced a critical defeat. The loss undermines EDF’s plans to rebuild its credibility in Europe, especially as it struggles with delays and cost overruns on several major projects.
A source within EDF expressed the company’s disappointment, stating, “We were counting on this project to give credibility to our offer on a European scale.” However, they acknowledged that the financial realities overshadowed any political rhetoric.
Despite the setback, EDF remains hopeful. The company issued a statement saying it is ready to restart discussions with the Czech government if the bidding process changes in the coming weeks.
EDF’s Struggles
EDF’s bid loss is a testament to its recent troubled track record. The Flamanville project in France, for example, has seen costs balloon from an estimated €3 billion to €13.2 billion by the end of 2022, with a decade-long delay. Similarly, the Hinkley Point C project in Britain is now set to commence operations in 2029, well past its original 2017 target.
The Czech bid was lost to KHNP due to several factors, including price and proven technology. KHNP has already demonstrated success with its reactors in Abu Dhabi, making their proposal more attractive. Czech Prime Minister Petr Fiala commented that the Korean offer excelled in almost all evaluated criteria.
EDF’s proposal involved a new reactor model that has yet to be tested, adding to the gamble. Nicolas Goldberg, an associate director at Colombus Consulting, noted, “The Koreans had a lot going for them, particularly in terms of the price and the proof of concept.”
Future Uncertainties
EDF’s future in the international market is now uncertain. The loss of the Czech project follows another significant defeat in 2022 when Poland opted for Westinghouse over EDF for a plant on the Baltic Sea. The Czech projects could have boosted EDF’s efficiency and reduced costs, positioning the company strategically in Eastern Europe, a region keen on nuclear energy for its heavy industries.
However, some within EDF felt the company wasn’t ready for the Czech challenge, citing current industrial capacity issues. “It was too soon,” said another EDF insider.
France’s finance ministry declined to comment on the matter, leaving open questions about EDF’s ability to secure future international contracts. Goldberg emphasized, “There’s still a big question mark over our ability to export.”
Source: Reuters
