The Paks II nuclear expansion project in Hungary has reached a pivotal juncture following the formal cessation of cooperation between Rosatom and Siemens Energy. This decision comes after years of mounting challenges in acquiring German export permits for essential control systems required for the two new reactors. The collaboration, once heralded as a leading initiative, has been increasingly marred by political and regulatory hurdles.
Initially, Framatome and Siemens Energy were selected to deliver the instrumentation and control technology necessary for the project. However, German authorities denied the necessary approvals, citing security concerns stemming from the ongoing conflict in Ukraine. Sources within the industry indicate that Siemens Energy’s withdrawal was not voluntary; rather, it was compelled by stringent government regulations that placed the company at odds with both its contractual obligations and national policy.
In an attempt to resolve these issues, Hungary proposed relocating Siemens Energy’s nuclear control unit to its territory last year. This strategy aimed to enable local oversight of approvals and potentially circumvent German regulatory constraints. The recent termination of the contract suggests that this approach either did not materialize or was deemed legally unfeasible within the project’s timeline.
Despite the departure of Siemens Energy, Rosatom has downplayed its impact, asserting that the components in question represent less than 4% of the total equipment value and are not considered mission-critical. The contractor indicated its readiness to explore alternative suppliers or develop in-house solutions. Construction on the two new 1,200 MW reactors is progressing, with initial concrete already poured under the framework of the 2014 Hungary-Russia agreement. These reactors are projected to commence operations around 2031-2032; however, it remains uncertain whether changing suppliers for the control systems will affect this timeline.
