The state aid, which the Hungarian government will allocate for extension of NPP Paks, is in line with European rules, according to the latest analyzes of the European Commission. The state support activities will have minimal impact on competition in the sector.
Hungary will grant financial assistance for the construction of two new reactors at NPP Paks. They will replace outdated equipment, as currently the power plant has four reactors at the plant in operation since 1980s. The plant provides about 50% of electricity generated in Hungary.
The EC recall that each country in the community has the freedom itself to determines its energy mix and invest in nuclear power plants. The role of Brussels is to ensure that public funds are spent in line with state aid rules in order to preserve competition in the single EU market.
According to the conclusions of the European Commission, the country agrees with the lower return on the project, as opposed to private investors.
The construction of new reactors to begin in 2018. Hungary chose Rosatom, as provider of the new facilities. The cost of the project is about 12 billion EUR and the fears of its opponents are that it will weigh many budget of Hungary.
Hungary signed a loan from Russia for building the plant, for which are called into question the transparency of the conditions under which Budapest receives the funds.