The Supreme Administrative Court (SAC) annulled a preliminary measure that blocked the conclusion of a contract for the construction of new nuclear units at the Dukovany power plant. Decision comes after cassation complaints by Elektrárna Dukovany II and Korea Hydro & Nuclear Power (KHNP), which the Supreme Court upheld. The case is referred back to the Regional Court for further proceedings.
The plan for the expansion of the Dukovany nuclear power plant is a key part of the Czech energy strategy to ensure long-term energy self-sufficiency and meet climate goals. Elektrárna Dukovany II, a subsidiary of CEZ, has selected the South Korean company KHNP as a contractor to work on the project. However, the tender for the construction of two new units, worth over CZK 200 billion, was opposed by the French participant EDF, which challenged the tender procedure. This led the regional court to issue an interim measure prohibiting the conclusion of the contract between Elektrárna Dukovany II and KHNP until the dispute is resolved.
In its decision, the SAC found the interim measure unlawful and partly unreviewable. According to the Chamber of the SAC, the Regional Court incorrectly assessed the balance of interests. When deciding on an interim measure, the court must consider whether the public interest in the implementation of the contract outweighs the interests of the applicant, who is seeking to stop the contract. At the same time, it must assess the likelihood of success of the action.
The SAC criticised the regional court for completely disregarding the interests of KHNP and misjudging the public interest. According to the SAC, the public interest in the timely conclusion of the contract and the start of construction of the new nuclear units is significantly more important than the interests of the plaintiff, who is trying to prevent the conclusion of the contract, or the interest in reviewing the procedure of the contracting authority and the Office for the Protection of Competition (OPC). The SAC emphasised that the action appeared to be unfounded as a preliminary measure and therefore annulled the interim measure.
The lifting of the interim measure removes a key obstacle to the continuation of the project, which is considered strategic for the Czech Republic's energy future. The Dukovany nuclear power plant currently covers about 20 % of the country's electricity production, but its existing units are gradually reaching the end of their life. The new units are intended to ensure continuity of generation and help the Czech Republic reduce its dependence on coal-fired sources, which are to be phased out by 2033 in line with European climate targets.
However, the SAC's decision does not mean the end of the dispute. The case is being returned to the regional court, which will have to re-examine the arguments of all parties. In the meantime, the Dukovany II Power Plant and KHNP can continue preparations for the signing of the contract and the start of construction, which, according to earlier estimates, may take approximately 10 years.
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