Hungary proposes amendments to Paks nuclear plant contract with Rosatom

On November 19, 2024, the Hungarian government introduced a bill to its parliament seeking to amend the existing contract with Russia’s Rosatom for the expansion of the Paks nuclear power plant. 

The Paks expansion, valued at €12.5 billion ($13.2 billion), includes two 1.2 GW VVER reactors and is critical for Hungary’s energy strategy. The plant currently supplies 40% of the country’s electricity. 

Delays stemming from permitting challenges, the Covid-19 pandemic, and sanctions on Russia have pushed back the project’s timeline, with completion now targeted for the early 2030s.

Hungary, which secured a €10 billion interstate loan from Russia to finance the majority of the project, remains committed to nuclear energy expansion despite geopolitical tensions and economic pressures. 

The government argues that completing the project, even under revised terms, is less detrimental than abandoning it.

To bridge the delay gap, Hungary has extended the lifespan of the existing four reactors at the Paks plant by 20 years. 

This move aligns with Prime Minister Viktor Orban’s strategy to meet rising power demands driven by Hungary’s growing electric vehicle production sector.