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What's at stake for EDF in Czech nuclear tender?

The stakes are high for France's nuclear power operator EDF, as it waits for the outcomes of a tender to build up to 4 brand-new reactors in the Czech Republic.

The French state-owned company stated on Tuesday that it had submitted an upgraded bid for the job and anticipates a choice from Czech utility CEZ this year.

WHY IS THIS PROJECT IMPORTANT FOR EDF?

If it wins, it would be the company's very first abroad agreement since it landed the Hinkley Point task in Britain in 2016, marking a significant vote of confidence in the company.

In the house, EDF has yet to complete its very first EPR (European. Pressurized Reactor) at Flamanville after a hold-up of 12 years. and faces scepticism about its ability to execute plans for. another 6 brand-new reactors in the country.

Everyone has an eye on Prague's choice, Vakis Ramany,. EDF senior vice president in charge of global brand-new nuclear. development, said ahead of the bid submission.

WHY IS THE CZECH CONTRACT IMPORTANT FOR EUROPE?

A win is not simply critical to the business however likewise to its. strategy to decrease expenses and increase the performance of other. nuclear reactors prepared in France and throughout Europe.

Europe's leading nuclear power-plant builder intends to provide. a couple of reactors a year on the continent from the 2030s, a. speed not seen because France commissioned its fleet of nuclear. stations in the 1980s and 1990s.

This is the speed necessary for us to continue to. regularly enhance our efficiency from one task to the. next, so that synergies can be maximised, said Ramany.

EDF is pushing for a major revival of nuclear power in. Europe, which it states is essential to cut carbon emissions and. strengthen energy security.

WHO ELSE IS BIDDING?

EDF is up against hard competitors from Korea Hydro &&. Nuclear Power (KHNP), a subsidiary of Korean conglomerate KEPCO.

The Korean company beat EDF 15 years earlier on a bid to develop. four reactors in the United Arab Emirates, after the French. business went into the process late and with higher costs.

KHNP's bid likely has much lower costs, state industry. participants.

The cost of a single EDF reactor is around 10 billion euros. ($ 10.73 billion), according to French paper Les Echos.

EDF declined to discuss the quote, in addition to expenses in. its proposal. KHNP also declined to talk about costs.

The costs for EDF's Flamanville EPR is now at 13.2 billion. euros ($ 14.14 billion), while the two Hinkley Point reactors are. expected to cost up to 35 billion pounds ($ 43.93 billion) based. on 2015 worths.

U.S. company Westinghouse has withdrawn from the. tender.

WHAT ARE EDF'S OPPORTUNITIES OF SUCCESS?

EDF needs to benefit from its proximity to the Czech Republic,. and its proposition to include Czech market in the job, stated. Marc-Antoine Eyl-Mazzega, director of the Energy and Environment. Center at the French Institute of International Relations.

Nevertheless, EDF has never developed an EPR1200, a streamlined. variation of its timeless EPR that it is proposing for the Czech. tender, and still requires certification for the new model.

It needs to pass this absolutely important stage so that the. Czech authorities are persuaded and have full confidence, stated. Eyl-Mazzega.

There are also still questions over whether Prague will be. able to finance the project, he added, describing it as a. gigantic financial gamble.

(source: Reuters)