Government: Paks upgrade covers Hungary’s energy needs for next 6 decades

Budapest (MTI) – The European Commission’s approval of the upgrade of Hungary’s Paks nuclear plant will secure the country’s energy needs with low prices for the next six decades, government office chief János Lázár told a regular press briefing on Thursday.

Lázár hailed the outcome as a triumph of economic diplomacy.

The project has cleared all legal obstacles set by the EU and preparatory work will start this year, while construction will begin in 2018, he said.

The commission found that Russian technology complies with all EU and international requirements. Hungary had the right to conclude the contract with Russia and the conditions of Hungarian state financing abide by EU rules, Lázár said.

Lázár cited a preparatory financial study on the project by the Rothschild Group, which concluded that the upgraded power plant would pay for the costs of its fuel, operation, maintenance, waste management and eventual dismantling while generating a profit of 3-4 percent.

Lázár insisted that the power plant’s ability to turn a profit was guaranteed by the fact that Hungary had signed a fixed-price contract for its expansion and would receive a “turnkey” nuclear plant.