Hungary Plans Additional ~EUR 300 Million in Funding for Paks II Nuclear Power Plant

The Hungarian government plans to allocate an additional HUF 111.6 billion, equivalent to approximately EUR 305.5 million, to the Paks II nuclear power plant project. The funds have been included in the draft amendment to the 2026 budget, which is expected to be submitted to the Hungarian Parliament for review.

According to the budget document, financial support for the Paks II project through the end of 2026 will increase from HUF 95 billion to HUF 206.6 billion, approximately EUR 565.5 million. Based on relevant calculations, over the past 12 years, the Hungarian government has directly allocated HUF 628.7 billion, exceeding EUR 1.7 billion, to the project; with the inclusion of this budget arrangement, cumulative financial support will exceed EUR 2.2 billion.

The Paks II nuclear power plant is being designed and constructed with the participation of Russia's State Atomic Energy Corporation (Rosatom). Rosatom has previously stated that construction is progressing in accordance with the schedule and the timeline approved by Hungarian contractors. On February 5 this year, the first concrete was poured for Unit 5. In accordance with International Atomic Energy Agency (IAEA) standards, this officially marked the project's transition into the plant construction phase, signifying a shift from preliminary preparations to main construction works.

The construction of the Paks II nuclear power plant is proceeding based on the intergovernmental agreement signed between Russia and Hungary in 2014, as well as the underlying contracts for the construction of two VVER-1200 units. The project has a total estimated investment of EUR 12.5 billion, with approximately 80% of the funding initially planned to come from Russian loans. The new units are scheduled to commence operation in the early 2030s.

The currently operating Paks nuclear power plant is located on the banks of the Danube River, approximately 100 kilometers south of Budapest. Built in the 1980s, it is equipped with four VVER-440 reactors. The plant accounts for approximately 45% of Hungary's electricity generation and 36% of the country's electricity consumption. After Paks II becomes operational, the total installed capacity of the Paks nuclear power plant is expected to increase from the current 2,000 megawatts to 4,400 megawatts.