nuclear-news

Economically unwise decision for Hungary to buy nuclear reactors from Russia

Hungary challenged on nuclear choice with Russia By Nick Thorpe BBC News, Hungary 11 June 15 Environmentalists in Hungary are hoping the European Commission will scupper a €12.5bn (£9bn) Hungarian-Russian deal to build two new 1,200 megawatt (MW) reactors at the Paks nuclear power station on the River Danube.

The expansion, they argue, will produce expensive energy, far beyond market prices, plunge Hungary into debt, and deepen dependence on Russia….
Mr Orban based his 2014 election victory on promises to keep utility prices low.

Months earlier he struck a deal with Russian President Vladimir Putin that saw Russia agree to loan Hungary around 80% of the estimated construction cost of the new reactors at Paks. Hungary will pay Russia back from the electricity generated.By the time Hungary has to start paying for this next generation of reactors, in 2025, Mr Orban should be in comfortable retirement.

Nevertheless, the decision to sign a deal with Russia took even his own Fidesz party by surprise.
Built by the Soviet Union in the 1980s, the working life of the four existing reactors at Paks will run out between 2032 and 2037.

That means that no new decision on replacing them would actually be necessary until 2020 at the earliest……….

opponents hope the European Commission will rule that Hungary’s 20% share of the construction costs will be judged to be a direct subsidy, which is illegal under competition rules.

A decision is expected in October http://www.bbc.com/news/world-europe-33078832

June 13, 2015 - Posted by Christina Macpherson | business and costs, EUROPE