Serbia’s big energy move: Partnering with Hungary’s Paks Nuclear Plant

The Paks Nuclear Power Plant plays a pivotal role in Hungary’s energy sector as its sole operational nuclear facility. Comprising four VVER-440 reactors built with Soviet-era technology, Paks generates nearly half of Hungary’s electricity. Over the years, the plant has undergone significant upgrades, boosting its capacity to 2,000 MW.

The future of Hungarian nuclear energy lies in the Paks II expansion project, which aims to construct two additional 1,200 MW reactors designed by Russia. Funded through a combination of a Russian state loan and Hungarian resources, this project has received European Commission approval. The primary aim is to enhance energy independence as the existing reactors approach the end of their operational lifespan by the late 2030s.

The benefits of nuclear energy

Hungary’s nuclear ambitions are not without challenges. While nuclear energy is promoted as a cost-effective and environmentally friendly solution, the Paks II project has faced criticism over financial transparency and potential cost overruns. Critics are also concerned that the focus on nuclear energy might divert funding away from renewable energy initiatives. Furthermore, public support for nuclear energy has waned since the Fukushima disaster, further complicating the discourse.

The Paks Nuclear Power Plant’s new partner: Serbia

According to Szabad Európa, Serbia is looking to diversify its energy portfolio, with President Aleksandar Vučić recently revealing plans to acquire up to a 10% stake in Hungary’s Paks Nuclear Power Plant. During a visit to Budapest, Vučić proposed the idea to Hungarian Prime Minister Viktor Orbán, emphasising that Belgrade would be prepared to pay the full market price for the stake. However, the Hungarian government has yet to respond.