Choi Won-hyung • 4 October 2024
After Korea Hydro & Nuclear Power (KHNP) was selected in July as the preferred bidder for the construction of nuclear facilities in Dukovany, Czech Republic, the World Nuclear Industry Status Report 2024 now claims that the estimated construction cost of US$17.5 billion is “too much for Czech governmental financing.”
It was recently revealed that during the tender process, KHNP submitted a letter of interest indicating the availability of financial assistance for the construction of three reactors the Czech government was unable to fund. This most recent report backs up the notion that there are “financing issues” that serve as the background to such an offer of financial support.
“The only possible financing option for the Czech Government appears to be a loan from South Korea through the Export-Import Bank of Korea or equity participation from KHNP,” the report explained, “and then selling power over several decades after construction to recover investment.”
However, the report added that “there is still a great deal of uncertainty as to whether it would be beneficial for South Korea to finance a project with a payback period of maybe 30 years or more.” Other topics covered in the report include US export controls and intellectual property rights issues involving Westinghouse.
The report listed Korea as one of 16 “focus countries” and described the Yoon Suk-yeol administration’s upcoming “pro-nuclear” policy, the construction of new nuclear reactors and the promotion of exports.
The report noted that Korea operates the “world’s fifth-largest nuclear power program” and “the national nuclear utility [KEPCO and KHNP] is responding to calls for tender for reactor construction in various countries.” However, this was qualified by a note that Korea has “refused to reveal financial records on the sole previous foreign deal with the UAE.” This reflects the widely held belief that it is difficult to scrutinize the practical economic feasibility of the nuclear facilities exported to the UAE in 2009 since information related to the contract terms has not been made public. “By mid-2024, KEPCO’s debt load stood at an unparalleled US$147 billion,” the report stated.
In the focus countries section, the report cited the “continued pro-nuclear policy of the Yoon administration” and described the 11th Basic Plan for Long-term Electricity Supply and Demand that purports to build three new reactors, extend the lifetime of nuclear power plants, and increase budgetary support for nuclear power.
Regarding the commencement of operations at Shin-Hanul-2 in Wolseong, North Gyeongsang Province, last year, the report stated: “With the startup of Shin-Hanul-2, Hanul Nuclear Power Plant (NPP) located in Ulchin-gun [sic], Gyeongsangbuk-do, became one of only two NPPs in the world hosting eight units, along with Canada’s Bruce NPP in Ontario, which is the largest number of reactors at a single site.”
The report stated that units Shin-Hanul-3 and -4, which were recently granted a construction license after eight years, are “to be the ninth and tenth nuclear reactor at the world’s densest and largest nuclear power plant” while pointing out the problems with the “practice of pre-manufacturing equipment before a construction license has been granted.”
For the Saeul-3 and -4 reactors that are currently under construction, the report said, “With the exception of Türkiye that is building four units, South Korea and the UK have the largest number of nuclear reactors (two each) under construction among the OECD member countries.”
“This illustrates the limited scope of nuclear power plant construction in industrialized countries,” the report read.
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