Hungary wins final EU approval for Russian-built nuclear plant

(EurActiv, 7 Mar 2017) The European Commission cleared the last hurdle on Monday (6 March) for Hungary’s Paks II nuclear plant project, despite outstanding concerns about the role of the national regulator and uncertainties over how spent fuel will be managed.

The Commission said that Hungary’s investment, backed by a €10 billion loan from Russia, did represent a form of state aid, and imposed a number of conditions before giving the green light.

After assessing the project, Brussels concluded that Budapest would get a lower return than a private investor would have got, invalidating Hungary’s argument that the project was economically viable.

To ensure public support does not distort the market, the EU executive imposed three conditions.

  • First, profits generated should be used to pay back Hungary and not to reinvest in additional capacity.
  • Second, Paks II should be functionally and legally separated from the operator of Paks I.
  • Finally, the new project will be forced to sell at least 30% of its electricity on the open power exchange.

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EurActiv, 7 Mar 2017: Hungary wins final EU approval for Russian-built nuclear plant