The recent electoral victory of Péter Magyar and the Tisza party has prompted a reevaluation of the Paks II nuclear project, a significant energy initiative in Hungary. The new government has initiated a thorough review of the project, which raises critical questions regarding its future and implications for Hungary’s energy landscape.
The Paks II project, primarily funded by a Russian state loan, aims to construct two VVER-1200 reactors. Development has been ongoing for several years, with key milestones such as the pouring of initial concrete expected in early 2026 and grid connection anticipated in the early 2030s. This initiative stands out as the only Russian-led nuclear construction project currently active within the European Union.
In light of the government’s review, Rosatom has expressed its willingness to collaborate with Hungary’s new administration on all facets of the project. CEO Alexey Likhachev emphasized that the development process has adhered to transparency standards and involved international experts, ensuring compliance with International Atomic Energy Agency (IAEA) guidelines.
Proponents of Paks II argue that completing the project would significantly enhance Hungary’s energy security, potentially allowing nuclear power to dominate domestic electricity generation and creating opportunities for energy exports. However, the new administration must navigate a complex situation, balancing its campaign promises to reassess existing agreements against the potential financial and strategic ramifications of altering or halting the project.
The existing Paks Nuclear Power Plant plays a crucial role in Hungary’s electricity supply, operating four reactors that were established in the 1980s. The planned expansion would introduce two modern units at the same site, further boosting installed capacity and solidifying nuclear energy’s role in providing baseload power.
Complicating matters are potential contractual penalties associated with any cancellation of the project, alongside Hungary’s ongoing necessity for reliable baseload generation capacity. Analysts suggest that Rosatom’s readiness to engage in discussions about technical and financial aspects may indicate confidence in the project’s legal framework and an intention to mitigate extended political uncertainty regarding its future.
