nuclear-news

Hungary’s nuclear regulator not independent, but European Commission approves its Russian-supplied nuclear reactors anyway

Brussels unswayed by concerns over Hungarian nuclear project http://www.politico.eu/article/brussels-unswayed-by-concerns-over-hungarian-nuclear-project-paks-ii-tender/  Opponents are continuing to fight, but Budapest insists the reactors will be built. Kalina Oroschakoff and Sara Stefanini 1/13/17,

The European Commission is standing behind its approval of Hungary’s decision to buy two nuclear reactors from Russia for its Paks II power plant without holding a tender.

The Commission dismissed the concerns of environmental groups questioning the lack of a bidding process in a letter, saying the “arguments put forward did not provide new elements that would have led the Commission to reconsider its previous position.”

Hungary had argued that only Rosatom’s VVER-1200 reactors could fulfill all of its requirements for the project.

Under EU rules, competitive tenders can be skipped when “for technical reasons the contract may be executed only by a particular economic operator.” Hungary wouldn’t be the first country to make use of that rule. France’s EDF handed the contract to build a reactor at the Flamanville nuclear power plant to state-owned Areva in 2007, arguing it was the only company that could fulfill the technical requirements.

Critics, including Greenpeace and Hungarian Green MEP Benedek Jávor, complained that the Commission hasn’t given an explanation as to why only Russian technology could fulfill Hungary’s requirements. They also pointed out that Hungary had been thinking of holding a competitive bid for the contract before opting for the Russian reactors.

The letter from the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs said that although Hungary may have initially thought of holding a competitive process, nothing precluded it from concluding that “only the Russian technology could technically fulfill the final Hungarian requirements.”

The Commission still needs to give its final say on whether financial support for the €12 billion project breaches EU state aid rules; Moscow is financing 80 percent of the costs with a loan. However, Brussels is expected to grant its approval in the coming weeks.

Hungary’s nuclear law raises concerns

Despite the Commission’s refusal to block Paks, opponents of the project are continuing a broader fight over Hungary’s nuclear policies.

The parliament in December passed amendments allowing the government to seize powers from the Hungarian Atomic Energy Agency.

The move has raised worries that the new rules not only compromise the regulator’s independence but also enable the Hungarian government to change the license conditions the agency set for Paks II. Environmental groups worry that this essentially makes the government the funder, owner, operator and regulator of the nuclear power station.

A group of NGOs called on the International Atomic Energy Agency to raise concerns about the developments at its next meeting on nuclear safety in March and April.

Budapest dismissed the claims in a statement to POLITICO, calling them attempts “to provoke international tension related to Hungary’s pro-nuclear stance.”

The government said it has no plans to reverse course on Paks II, saying it “is necessary, and we shall realize it — despite opposition from anti-nuclear green organizations.”

January 14, 2017 - Posted by Christina Macpherson | EUROPE, politics international