The Paks II nuclear expansion initiative in Hungary is moving forward following the termination of Rosatom’s collaboration with Siemens Energy. This development marks a significant shift in a project that has faced persistent challenges, particularly in obtaining German export permits for essential control systems needed for the new reactors. The partnership, which was once viewed as a cornerstone of Hungary’s nuclear strategy, has been increasingly strained by geopolitical tensions and regulatory hurdles.
Initially, Framatome and Siemens Energy were selected to provide critical instrumentation and control technology for the Paks II project. However, German authorities have consistently 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 a matter of choice but rather a consequence of stringent government restrictions that complicated its ability to fulfill contractual obligations.
In an attempt to resolve these issues, Hungarian officials proposed relocating Siemens Energy’s nuclear control unit to Hungary last year. This strategy aimed to allow local oversight of the approval process and circumvent German regulatory constraints. The recent termination of the contract suggests that this alternative approach either could not be implemented or was deemed legally impractical within the required timeframe.
Despite Siemens Energy’s exit, Rosatom has downplayed its impact on the overall project, asserting that the components involved represented less than 4% of the total equipment value and were not mission-critical. The Russian contractor has indicated its readiness to explore alternative suppliers or utilize internal resources to meet project demands. Construction activities have continued unabated, with the first concrete poured for two new reactors, each with a capacity of 1,200 MW, as part of the 2014 Hungary–Russia agreement. The new units are projected to begin operations around 2031–2032; however, it remains unclear whether changes in the control system supplier will affect this timeline.
