The future of Hungary’s Paks II nuclear project is now under scrutiny following the electoral success of Péter Magyar and the Tisza party. The newly elected administration has initiated a thorough review of this pivotal energy initiative, which has raised concerns regarding one of Hungary’s major long-term investments in energy infrastructure.
Paks II aims to enhance the country’s nuclear capacity through the construction of two VVER-1200 reactors, primarily funded by a Russian state loan. The project has been progressing for several years, with significant milestones already reached, including the anticipated pouring of first concrete slated for early 2026. A grid connection is expected in the early 2030s. Notably, this project stands as the only Russian-led nuclear construction endeavor currently active within the European Union.
In light of the recent political shift, Rosatom has expressed its willingness to collaborate with Hungary’s new government on all facets of the Paks II project. CEO Alexey Likhachev reaffirmed that the development process has adhered to transparency principles and involved international experts, ensuring compliance with standards set by the International Atomic Energy Agency (IAEA).
Proponents assert that completing Paks II could significantly bolster Hungary’s energy security, positioning nuclear power as a key player in domestic electricity generation and potentially unlocking export opportunities. However, the incoming government faces a complex challenge: balancing its commitment to reevaluate existing agreements against the financial implications and strategic risks associated with any alterations or cancellations.
The current Paks Nuclear Power Plant operates four reactors from the 1980s and is integral to Hungary’s electricity grid. The expansion plan would introduce two advanced units at this site, thereby increasing overall capacity and reinforcing nuclear energy’s role in providing stable baseload generation.
Compounding these issues are potential contractual penalties tied to project cancellation and Hungary’s ongoing demand for reliable baseload generation capacity. Analysts suggest that Rosatom’s readiness to negotiate technical and financial aspects may indicate confidence in both the project’s legal framework and an intention to mitigate extended political uncertainty regarding its future.
