Nuclear powers battle each other to market nuclear reactors to Czech Republic

The Czech Republic Is Caught in a Nuclear Tug of War, FP,

Competition among China, Russia, and the West is taking the form of a battle to build reactors in Eastern Europe. BY TIM GOSLING SEPTEMBER 8, 2020

”………………… The minority government of Czech Prime Minister Andrej Babis, who founded the ruling ANO 2011 party, has welcomed U.S. President Donald Trump’s embrace. But his stance looks less than certain as the country prepares to face one of its sternest geopolitical tests since the fall of communism 30 years ago: choosing a partner to expand its Soviet-built nuclear power capacity.

……….. Part of Pompeo’s mission to the Czech Republic was to convince Babis that it would pose a similar risk as Huawei should China or Russia win an upcoming tender to build a new 1.2-gigawatt reactor at the Dukovany nuclear power plant, at an estimated cost of over $7 billion. “If you choose one of these countries, it will jeopardize your freedom and sovereignty,” Pompeo reportedly stressed to the Czech leader.

However, Babis’s government is weak, and he faces building pressure at home and abroad to lean east. In turn, he has declined to exclude Chinese and Russian state-owned companies from bidding for the project and, despite welcoming Pompeo enthusiastically, demurred on signing a proffered cooperation agreement on nuclear energy…………

Part of Pompeo’s mission to the Czech Republic was to convince Babis that it would pose a similar risk as Huawei should China or Russia win an upcoming tender to build a new 1.2-gigawatt reactor at the Dukovany nuclear power plant, at an estimated cost of over $7 billion. “If you choose one of these countries, it will jeopardize your freedom and sovereignty,” Pompeo reportedly stressed to the Czech leader.

The expansion of the country’s two nuclear power plants—Dukovany and Temelin—are at the center of the Czech Republic’s long-term energy strategy. However, the government has struggled for years to find a financing model agreeable to the minority shareholders at state-controlled energy group CEZ, which is tasked with building and running the nuclear energy infrastructure.

The disagreement over funding saw plans to build two new units at Temelin scrapped in 2014. The two finalists in that race—which also brought a U.S. secretary of state to Prague—were the Russian state nuclear agency Rosatom and U.S.-based Westinghouse.

They’ve sat in the background in Prague since, awaiting the starting gun for new projects. In the Dukovany showdown, they’re set to be joined by bidders from China, France, and South Korea………..

In the wake of Pompeo’s trip to Prague, lobbying around the nuclear plant will ramp up. “Russia has been extremely active in lobbying for the past couple of years,” Karaskova said. “The U.S., through Mike Pompeo’s comments, also showed a strong interest, probably the first time so openly and publicly.” Petr Trescak, an opposition MP, veteran of the nuclear sector, and member of the government committee for new nuclear plants said that he expects intense lobbying will soon start.

Lipavsky said that the tender is already a regular topic with representatives of those countries that will bid, including the French and U.S. ambassadors. Public opinion is also key. Following Pompeo’s visit, Westinghouse launched a search for new senior PR operatives……… https://foreignpolicy.com/2020/09/08/czech-republic-nuclear-tug-of-war-china-russia-united-states/

September 10, 2020 - Posted by Christina Macpherson | EUROPE, marketing

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