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Hungarian Power Companies Ltd.

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 F.A.Q.

 
    • Why is it necessary to construct new nuclear power plant units?

      According to the National Energy Strategy, the energy sector has to be developed in such a way as to guarantee the country’s security of supply, to support sustainable development and to implement the goals of the entire society. In Hungary, nuclear energy is the only electricity generation technology that can be operated reliably (independently of the weather conditions), at an industrial scale, and without pollutant emissions, that generates electricity at an affordable price and can also guarantee long-term security of supply.

      The construction of the new nuclear power plant units is being prepared with the implementation of the Nation Energy Strategy in mind. In Hungary, a number of inefficient conventional (fossil-based, i.e. coal-, oil- or gas-fired) power plants, which will become obsolete, will have to be shut down in the coming decades, and the lost capacities will need to be made up for. If we did not act, in Hungary by 2030 the amount of electricity generated by large power plants and small power plants would decrease to about half and two-thirds, respectively. Thus a capacity shortage of up to 7,000 MW would arise, which could be covered only by imports. Even the extended lifetime of the existing Paks units will last only until the mid-2030s, and more than 40 per cent of our electricity output would need to be made up for suddenly then. Furthermore, it is important that according to MAVIR Ltd.’s forecast, there is a slow but steadily growing domestic demand for electricity.

      Therefore it is subservient to provide the construction of approx. 5500 MW capatiy by 2027 and approxx. 7000 MW of capacity by 2032 in the Hungarian electricity system, the two new nuclear power plant units would be part of this. Since the establishment of nuclear power plants is a very long process, it was necessary to start the preparation of the project, since only the acquisition of the licenses can take years.

      The establishment of the new nuclear power plant units is not only an issue of environmental protection and economic efficiency; security of supply is also just as important. A nuclear power plant can generate electricity even if the sun is not shining, the wind is not blowing or the coal is frozen. Furthermore, it is easier to stockpile an amount of nuclear fuel sufficient for several years, it can be stored in a small space and cheaply. In the operating costs of nuclear power plants, the price of the fuel (uranium) represents a low proportion (only about 10%). As a result, a change in the world market price of uranium affects the price of electricity generated at the nuclear power plant only to a small extent. The expected service time of the proposed new units is 60 years, which guarantees the security of supply in the long term.

      Today’s high share of imported electricity means a high risk for Hungary’s safe and cheap electricity supply. One third of the consumption is from foreign producers, in addition from mostly coal-fired power plants, mainly from Ukraine, Poland and the Czech Republic.

      It is important the operation of the nuclear power plant is pollutant emission free, is in accordance with the EU’s energy policy, thus is an important component in the fight against climate change. The main tool of the European Unions’s aspirition to reduce emissions of greenhouse gases is the carbon trading system from the operation of polluting factories and power plants. The price of carbon quotas, according to forecasts (and due to the efforts of the European Commission) will soon start to rise, which will significantly increase the cost of electricity produced in coal and gas power plants, namely the import is expected to become more expensive soon.

    • How many units are planned?
      Hungary plans to construct two additional units, each with a gross electrical capacity of 1,200 MW, next to the existing four nuclear power plant units, each with a capacity of 500 MW. It is expedient to construct more than one unit within a project, because in this way the capital costs will be lower compared to the costs of units constructed independently of each other.
    • Where will the new units be constructed? Why there?
      According to the decision of Parliament, the new units will be established at Paks, because there is a planned, prepared site provided with construction infrastructure. 

       
      The site is assessed and data series covering several decades are available. Therefore, the approval process is faster and cheaper than it would be in the case of a greenfield project. Technical culture and human resources, as well as support of the region’s population, are available in Paks.​​

       
      The site license issued on 30 March 2017 by the Hungarian Atomic Energy Authority (HAEA) verifies that the site of Paks II. is suitable to accomodate new nuclear power plant units according to the Hungarian legal system. This site is also suitable for the construction of new units according to international recommendations.
    • What type of units will be constructed?
      One of the most modern, Generation 3+, pressurised water reactor types will be constructed, in the design of which nuclear safety, economical operation and a 60-year design life were primary considerations.

      The reactor type selected for Paks is the VVER-1200 model with a unit capacity of 1,200 MW, which is the most recent development of Rosatom. The specialists have used the design and operational results of the VVER models, which have had excellent performance for many years, and their experience for the design of this model, increasing the efficiency of energy production and safety systems. The operational (VVER-440) units of the Paks Nuclear Power Plant belong to the previous Generation 2 of the ‘VVER family’.

       
    • What are the technical risks of implementation?

      The establishment of the new nuclear power plant units is aimed primarily at replacement of the capaticy of the Paks Nuclear Power Plants units, following their decommission between 2032-2037 after its life-time extension. As early as in the preparatory phase, we aim to treat all possible technical risks in a satisfactory and reassuring way. Thus, for example, we ascertained that the generation capacities concentrated on one site cannot cause any problem even if there is an extreme high or low level of water in the Danube or there are extreme fluctuations in the electricity system. The proposed new units have the important advantage that they can be implemented in a concentrated way, in a relatively small area, thus they will not take away land from the natural environment or agricultural production.

       
    • What will guarantee safe operation? What do we know about the proposed safety system?

      The construction of nuclear power plants is regulated by both international and Hungarian organisations. The most important and unavoidable criterion of establishment is nuclear safety. At the proposed power plant, so-called Generation 3+ reactors will operate, which are developed from Generation 2 reactors. The biggest difference between the two generations involves safety. The reason for this is that the safety systems have been further expanded, because issues that had not been taken into consideration so far due to the low probability of any occurrence have also been included in the design requirements (design basis). During the design process special efforts were made to simplify the systems, laying particular emphasis on the prevention of serious accidents and the mitigation of their possible consequences. In the spirit of this, the subsequent modern solutions have been included in the newly designed units, which will prevent, even in a presumed serious accident, the release of radioactive materials into the environment.

       

      • Passive safety systems are used, which do not require an external power supply, such that they are able to restore the safe condition of a unit even during an incident similar to the Fukushima earthquake and tsunami in 2011.Use of automatic systems; a decreasing number of interventions are required by the operating personnel (the possibility of the occurrence of human error is much lower);
      • Application of simpler systems, thereby reducing the possibility of failures;
      • Use of modern structural materials that have an increased load-bearing capacity;
      • More advanced serious accident management systems (in the case of the VVER-1200 type, e.g. even in a complete meltdown, the core is collected in a core catcher designed for it, where appropriate cooling of the corium can be ensured);
      • Taking into account a wider range of possible external incidents during design (application of technical solutions for management of incidents such as an earthquake, the impact of an aeroplane crash, flooding or fire);
      • One safety function is provided by several systems, which are physically separated from each other; thus if one of them happens to be maintained and another fails, the safety function can be carried out without hindrance by the appropriate system.
         

       

    • When will electricity generation start?

      After issuing the necessary licences, the construction of the two new nuclear power plant units might start.

    • What will be the generation capacity?

      The rated gross electrical capacity of a proposed unit is 1,200 MW, thus the total capacity of the two units is planned to be 2,400 MW.

    • When will the operating licence expire?
      The tests conducted and design experience relating to previous power plans allow the new nuclear power plant units to be designed for an operating lifetime of 60 years.
    • What will be the proportion of Hungarian suppliers?

      At the negotiations conducted before the signing of the intergovernmental agreement between Hungary and Russia, the parties agreed on a 40% proportion of Hungarian suppliers. The establishment of the proposed new nuclear power plant units could be the largest industrial project of the century in Hungary and could create a large number of jobs at a variety of manufacturing and service companies, as well as in education.

    • How did the Fukushima accident influence the safety requirements?

      The nuclear industry and responsible international nuclear power plant operators have been working on the continuous improvement of nuclear safety for decades. Following the Fukushima nuclear power plant accident, the so-called Targeted Safety Assessments performed at all nuclear power plant units in the European Union did not reveal significant deficiencies. In effect, regarding the Paks Nuclear Power Plant, such development and additional safety enhancement possibilities were identified, that Hungarian specialists had already planned and are able to implement from the Company’s own resources.

       

      The Hungarian and international nuclear safety regulations and rules have become significantly more stringent after Fukushima. However, the new units to be established belong to the most advanced types and due to their high safety standard they are able meet the more stringent regulation.

       
    • Will it be necessary to import electricity once the new nuclear power plant is completed?
      On the basis of preliminary calculations, only 62% of the installed electrical capacity of power plants existing in 2016 will be available in the Hungarian electricity system by 2031. With the construction of the new nuclear power plant units, the effect of the shut-down of large, conventional (fossil-based) power plant capacities forecast for the 2020s can be fully compensated for.
       

      A third of the Hungarian electricity consumption today is imported, and we face the growth of this proportion with the future aging and the expected shutdown of our power plants. Once the new units will become operational this import will decline. The new units will predominantly aim to meet the Hungarian demands, reduce imports, thereby improving security of supply. A further advantage of the new power plants units is that they are expected to supply our country’s carbon free electricity by the end of the century.

    • What will happen with the old units once the new ones are completed?

      Due to careful operating and maintenance practices and a number of refurbishments and safety enhancement measures, the condition of the four currently operational units of the Paks Nuclear Power Plant allows the extension of the original design life of 30 years by 20 years, taking into account, first and foremost, safe operation. This means that the units will have to be shut down between 2032 and 2037.

    • What happens if the new units are not constructed?

      When the establishment of the new nuclear power plant units is evaluated, it must be taken into consideration that no country can afford to live without own electricity generation and depend on its neighbours or energy producers farther away. For this very reason, Parliament voted in favour of the National Energy Strategy and laid down the ‘nuclear-coal-renewable’ scenario in it, which lays emphasis on all three energy sources.

      On the basis of preliminary calculations, only 62% of the installed electrical capacity of power plants existing in 2016 will be available in the Hungarian electricity system by 2031. Then the operational units of the Paks Nuclear Power Plant are expected to be shut down between 2032 and 2037. To avoid the increase in imports, we have to replace the loss of capacity, and the slight but ongoing growth of electricity consumption will have to be met.
       

      According to the goal set out in the National Energy Strategy, we strive for an export/import balance of around zero in the long term, i.e. the electricity required for consumption in Hungary must be produced with Hungarian power plants.

      If the new units are not constructed, we’ll face a serious lack of capacity, and we’ll have to prepare for a dramatically increasing and unmatched level of import. This would erode the merits of our country's security of supply and competitiveness.

    • Is sufficient fuel available for the new units as well?

      Yes. In addition to Russia, France, Great Britain and the United States of America can also supply fuel assemblies required for the operation of nuclear power plants. Furthermore, it is easy to stockpile a sufficient amount of nuclear fuel even for years. At present, the Paks Nuclear Power Plant is storing fuel for two years in an area the size of a large room, and this stock can be easily increased if necessary.

       
       
    • What is the guarantee that the planned deadlines and the projected cost requirements can be met in the future?
      According to the so-called turn key contract, the Russian Contractor will deliver the nuclear power plant with every necessary equipment and accessory with a fixed technical content, with a fixed quality ready for commercial operation at a fixed price. Thanks to the fixed price of the contract, the 12,5 Bn EUR investment value won’t rise, it can not be deviated from. Even the European Commission acknowledged it, that our country needs to construct the new nuclear power plant units, they will bring back the invested money and will also make profit.

       

       
       
       
       
    • How would the construction of the new units affect the use of renewable energy sources in Hungary?

      By adopting the National Energy Strategy and with the ‘nuclear-coal-renewable’ scenario laid down in it, Parliament has declared that it also wishes to lay great emphasis on renewable energy sources in the future.

      The establishment of the new nuclear power plant units can provide solid, safe grounds for electricity supply in Hungary. This does not hinder renewable energy generation in replacing obsolete, conventional power plants polluting the environment and emitting greenhouse gases. In fact, it may allow renewable power plants, which generate electricity in an inflexible way, to reduce environmental load with the help of the balancing capacity of quick-start gas power plants, which are not operating at present.

      Cleverly combining the benefits of nuclear and renewable energy production, deriving in long-term the outdated, enviromental-polluting fossil power plants, can our safe, affordable and enviromentally-friendly electricity supply be guaranteed.

       
       
    • Are new jobs expected to be created through the project? Will there be new job opportunities?

      Yes, the establishment of the new units may be the largest project of the century, and could create a large number of jobs at a variety of manufacturing and service companies, as well as in education. According to plans and the promise of suppliers, we may attain a 40 per cent proportion of Hungarian suppliers.

      Our calculations show that the establishment of the nuclear power plant units may create job opportunities in the long term for about eight thousand highly qualified specialists and an additional several thousand skilled workers, about 10,000-15,000 Hungarians in total. Jointly with world-renowned Hungarian nuclear specialists and professors, we have devised plans relating to vocational training and specialised higher education. We find it of utmost importance that for the construction of the new units there should be a sufficient number of already experienced engineers in Hungary for construction and operation.

    • Where are nuclear power plants being constructed at present? Can the cost plan and time schedule be adhered to?

      Nearly 70 nuclear power reactors are being constructed all over the world, primarily in Asia, which is leading the development of technology, but 17 new units in total are also being planned in Europe. After the millennium, in the European Union the establishment of two new nuclear power plant units has been started and these two are currently in the phase of specific construction and installation work. It is a fact that both the Finnish Olkiluoto and the French Flamanville projects have run over their original budgets and their planned finishing dates. However, both projects involve the establishment of a prototype reactor. 

       
       
       
    • If Germany has renounced nuclear energy, why do we insist on having it?

      Every country has the right to determine what energy sources it uses for generating electricity. For decades, Germany produced the electricity used in the country by using mostly coal, natural gas and nuclear energy. In the 2000s, it also set itself the objective of subsidising renewable energy sources and strengthening the industry. Due to this, an increasing number of solar and wind power plants were constructed in the country. After the unfortunate Fukushima nuclear power plant accident, also pursuing domestic policy objectives, the German government decided in 2011 that as of 2022, it would definitively shut down its nuclear power plants operating in the country. According to the plans of the German government, it will replace the electricity generated by nuclear power plants in part by using renewable energy sources, and will also provide a significant subsidy for this (in the form of mandatory feed-in tariffs) similarly to previous years. German electricity consumers (and, at the same time, voters) decided that they were willing to forego nuclear power plants that generate electricity at low cost and are willing to spend money on the subsidisation of renewable energy sources, primarily solar and wind energy, which have much higher prime costs than the wholesale market price at present. Therefore, in Germany, the retail price of electricity includes a considerable green subsidy element (this can be about half of the retail price of electricity in Hungary, up to HUF 20/kWh), and it is also due to this that while ing Hungary the consumer price of electricity is 35 HUF/kWh, in Germany where nuclear energy is rejected, it's approx. 94 HUF. To a considerable extent, this is the consequence of the subsidisation of renewable energy in Germany.

      On the other hand, it must be mentioned that the German electricity system is no longer able to receive the current renewable energy capacity (wind and solar power plants) without difficulties either. It is a basic principle in every EU Member State that the electricity consumption of the country has to be kept in balance with electricity generation, which can be realised in Germany only with foreign help due to the variable output of wind power plants and solar panels, which also shows high deviations. During the hours when the German wind and solar power plants also generate electricity, the German system operator is often not able to balance electricity generation and consumption in Germany. The reason for this is that the system operator is obliged to give priority for off-taking the electricity generated from renewable sources (mandatory off-take), and it cannot reduce the output of the other power plants to a corresponding extent. If the national electricity output exceeds consumption, the output of power plants other than those using renewable sources (mostly gas- but several times coal-fired power plants) is reduced. Since this reduction (what is called scale back or output reduction) cannot be carried out in the whole output range of the power plant (0% to 100%) for technological reasons, it may occur that the national output exceeds consumption even in the case of the maximum output reduction of controllable power plants. In this case, in accordance with the laws of physics, electricity ‘flows out’ of Germany, and the system operators of the neighbouring countries are compelled to tackle the balancing of this redundant electricity. In this case, i.e. at the time of the overproduction of electricity in Germany, it sometimes also occurs that the wholesale prices of electricity become negative, i.e. conventional power plants (not renewable ones!) pay for the off-take of electricity from them.

      In the opposite case, i.e. when the output of wind and solar power plants is minimum, Germany is often not able to generate the quantity of electricity corresponding to its national consumption (load) within its boundaries and needs to import electricity.

      It must be mentioned, furthermore, that changing the output of controllable power plants (the output of which can be decreased and increased, which are typically coal- and gas-fired power plants) worsens the efficiency of power plants and also increases their specific carbon dioxide emissions.

      Therefore, the German energy policy decision, i.e. the shutdown of nuclear power plants and the subsidisation of renewable energy sources, have consequences. Although the subsidisation of renewable energy sources conforms to the commitment to the struggle against climate change from a certain aspect, it does not meet another energy policy goal, the objective of competitive energy supply, and the security of supply may also be compromised. According to the Hungarian National Energy Strategy adopted in 2011, the purpose of the Hungarian energy policy is not only to ensure that the energy system is climate friendly, but also that electricity supply is safe and continuous as well as electricity is available to consumers at a competitive price. Nuclear power plants meet all three objectives above therefore Hungary decided to maintain the current nuclear power plant capacity at Paks in the long run, i.e. to construct two new units.

    • What safety system guarantees that no disaster similar to that of Chernobyl and Fukushima can occur at Paks?

      In the case of Chernobyl accident primarily the reactor type itself, while in the case of Fukushima accident deficiencies in the design for risks of natural origin led to disasters. Both power plants belong to the what is called Generation 2, just like the four currently operational units of the Paks Nuclear Power Plant. However, the Chernobyl Nuclear Power Plant had a completely different technology than the one operating at Paks. At the Chernobyl Nuclear Power Plant, graphite-moderated reactors were in operation; on the basis of the laws of physics, an accident similar to the events that unfolded there cannot take place in light-water moderated nuclear reactors like that at Paks. The Chernobyl nuclear power plant did not have a protective building (what is called containment) either, which contains most radioactive materials in the case of an accident that might occur. The Paks Nuclear Power Plant has one, and the new units will be protected by an even safer, double-walled containment.

       

      At Fukushima, an accident occurred with the light-water reactors due to a tsunami that occurred as a result of an extremely strong earthquake. The accident could have been avoided by estimating the extent of the earthquake taken as a design basis in a more conservative way, which would have been facilitated if the supervisory authority responsible for nuclear safety and the operator of the Japanese nuclear power plant were appropriately independent of each other. In Hungary, these two organisations are appropriately unbundled. Moreover, thanks to continuous development, the Paks Nuclear Power Plant has a much more advanced accident management system than the Fukushima facility had (such as the so-called hydrogen-recombiner system used for fixing explosive hydrogen generated from water as a result of the accident). After the Fukushima accident, the result of the Targeted Safety Assessment carried out in the European Union (more commonly known as ‘stress test’) pointed out that due to continuous safety enhancement measures, the Paks units met the most stringent safety regulations applicable to currently operational nuclear power plants. The new units to be established represent one of the most modern pressurized water models, which is provided with a significantly increased number of efficient safety systems and equipment; thus compared to the previous designs it provides multiple protection against, among other things, earthquakes, flooding and even the impact of aeroplanes, which otherwise have a low probability in Hungary. Moreover, it can also safely resist the effects of hazard factors with much greater impacts than Generation 2 nuclear power plants. You can read about the safety system of the new nuclear power plant units in more detail under the heading ‘New Units’.

    • Will the energy remaining in the cooling water be made use of?

      What is known as waste steam conveyed from the turbine to the condenser has such a low temperature and pressure that it can no longer be used for work. In order to enable it to work again, first it has to be made to condense, then the medium has to be conveyed to a steam generator in a liquid state (water) to restore its condition suitable for work. Condensation is carried out by means of cooling water, frequently the water of a river, lake or sea. The waste steam transfers its residual heat to the cooling water on the surfaces of a heat exchanger, and turns into liquid phase (water). During this, the temperature of the cooling water increases by 5° to 10°C; however, even with this temperature increase, its temperature will be too low for allowing the energy to be extracted from it economically.

      At present, the level of the cooling water discharged from the power plant at Paks is higher compared to the water level of the Danube due to flood control considerations and it is also planned to be higher in the case of the new units. Thus, this difference in potential energy resulting from the difference of elevations could be utilised with what is called a recuperation power plant provided with a water turbine.

    • Are the four currently operational units safe?

      Yes, and it is not only we who say so, but also organisations independent of the Hungarian industry and Hungary itself, such as the specialists of the European Union, who reviewed the National Report on the Targeted Safety Assessment. They found the Hungarian assessment to be one of the most thorough ones, and the nuclear power plant to be one of the most compliant ones among all European units. The Targeted Safety Assessment established that in addition to extremely high and low water levels of the Danube, the Paks Nuclear Power Plant could be operated safely in the case of a number of other possibilities.

      The specialists of the Paks Nuclear Power Plant have been extending and improving the safety of the power plant almost since the beginning. In contrast to public belief, this nuclear power plant and these units are no longer the same that were commissioned 30 years ago, and they meet the technical and safety standard of any Western European nuclear power plant of a similar age.

       
    • What is the house load of the power plant?

      Due to the consumption of the high performance pumps of the power plant (e.g. the main circulating pumps of the primary loop, the feedwater pumps of the secondary loop and the pumps of the condenser cooling water), as well as the various power plant systems and equipment, the new units are expected to have a house load of 5% to 7%, the magnitude of which is equal to the house load ratio of the current units. In the case of a 1,200 MW unit, this means a house load consumption of 60 to 84 MW.

    • Is the management of the produced radioactive waste ensured?

      During the operation of nuclear power plants, in addition to the electricity produced, radioactive waste and spent fuel assemblies are also produced as by-products. On the basis of the definition of Act CXVI of 1996 on Nuclear Energy, radioactive materials that cannot be managed as common waste on the basis of radiation protection parameters and that are no longer used are called radioactive wastes.

      Taking also into consideration international recommendations, on the basis of radioactivity levels (heat generation rate) and the lifespan of the waste, the Hungarian legal system distinguishes between low-, intermediate- and high-level radioactive waste, and within that, short- and long-life wastes. According to Decree No. 47/2003 (VIII.8.) EszCsM, radioactive waste in which heat generation is negligible during disposal (storage) qualifies as low- and intermediate-level radioactive waste, while the Decree talks about high-level radioactive waste if heat generation has also to be taken into account as early as during the design and operation of storage (disposal). Although the legislation draws a specific line between low- and intermediate-level radioactive wastes on the basis of the activity concentration of radioisotope(s) found in the waste and the clearance level activity concentration, in waste management practices based on conservative engineering considerations, which is typical of the nuclear industry, the two waste categories are managed and stored jointly by taking into account the more stringent regulations in order for the radioactive waste definitely not to pose a hazard either to the population or the natural environment in the long term. On the basis of the currently adopted international safety philosophy, repository types established on or near the ground surface are sufficient for the disposal of short-life wastes (with a short half-life), while in other cases, geological disposal has to be applied.

      Accordingly, in Hungary the National Radioactive Waste Repository has been established underground in the area of Bátaapáti for low- and intermediate-level radioactive wastes. It has sufficient capacity for the final disposal of the total quantity of wastes produced by the currently operational and proposed nuclear power plant units.

      However, we must not forget about high-level radioactive wastes and spent fuel assemblies, since in their case, due to their different properties (heat generation and long life), efficient isolation from the biosphere has to be provided for a longer period and be subject to more stringent conditions. There are basically two options for the management of the spent fuel: (1) the final disposal of the spent fuel in a so-called deep geological repository or (2) the reprocessing, which means recycling and then the final disposal of the high-level waste in deep geological repository. Accordingly the research of a possible deep geological repository’s site is currently ongoing in Western-Mecsek, which is the held as the safest disposal solution in the international practice.

      The Radioactive Waste Management Not-for-profit Company established on 2 July 1998 and operating under the supervision of the HAEA is responsible for the safe storage of the radioactive wastes and spent fuel described above in a reassuring way, for the design and operation of radioactive waste repositories in Hungary, as well as for devising a concept for waste management. In keeping with the forms of business operating in the European Union, this company has been performing its tasks specified in a separate legal rule as a Not-for-profit Limited Liability Company since 7 January 2008.

    • How will the demand for electricity generation change over the next two decades, and what will be the expected proportion of nuclear in power generation?

      According to the forecast issued by the International Energy Agency in 2015 (World Energy Outlook 2013), electricity generation in the world will increase by more than 70 per cent by 2040 and within that, the proportion of nuclear energy generation will remain stable by 2030, while it might increase by more than 60% in absolute value.

    • What is the cost of a nuclear power plant project?
      The EUR 10 billion credit line stated in the loan contract between Hungary and Russia will provide 80% of the cost of the project, and the remaining 20% will be raised by the Hungarian party from its own funds. The tenor of this loan bearing a tiered interest rate, which is more favourable than the market interest rate, is 30 years, and repayment is due to start after commissioning.
       
    • How did the Fukushima accident influence the cost level?

      The Fukushima accident provided a lot of lessons about the safety of nuclear power plants. The required reviews and assessments have been carried out all over the world. In certain cases, modifications have also been carried out at operational nuclear power plants, such as the establishment of protection against flooding, increasing the protection of diesel generators or, as in the case of the Paks units, ensuring the long-term cooling of the spent fuel pool. However, their costs are negligible compared to the capital cost of a nuclear power plant. The units being constructed today have a significant number of safety innovations compared to the previous nuclear power plant generations, due to which they would protect the unit from damage in the case of an incident similar to the double natural disaster occurring at Fukushima. It is important to emphasise that these items of equipment had already been basic requirements prior to the Fukushima accident in the case of new types of power plants. Consequently, they do not represent a further increase in costs.

    • What are the most important tasks of Paks II. Ltd.?

      The most important tasks of our Company include the identification of the scope of establishment, thus laying down the technical and commercial terms.  Obtaining site, environmental, water and establishment licences are also important elements of the project work. are also important elements of the project work. The Paks II. company's task is to establish, to put into operation and later to operate the new nuclear power plants units..

      The Company does not have an independent source of revenues coming from its core business. The amount of 47,1 billion HUF constituting its registered capital serves the financing of the company's core business.

    • What can be known about the loan agreement?

      The details of the Hungarian-Russian loan agreement with favorable parameters can be found in the Hungarian Gazette’s 91. copy of 3 July 2014 (the law can also be found here: http://njt.hu/cgi_bin/njt_doc.cgi?docid=170314.276744). According to the XXIV. law of 2014 Russia provides up to EUR 10 billion for Hungary for the design, construction, works, services and equipment purchases necessary for the startup of the two new nuclear power plant units in Paks. This loan will cover 80% of the cost and can be used from 2014-2025. The repayment is over 21 years. The start of the repayment is due on 15 March or 15 September, closer to the startup of the new units, or at 15 March 2026 at the latest. The repayment is made according to this:

      Period The amount to be repaid Interest rate
      Until the first installment’s repayment - 3,95%
      In the first 7 seven years of repayment 25% of the actually used amount, in 14 equal installments 4,50%
      In the second 7 seven years of repayment 35% of the actually used amount, in 14 equal installments 4,80%
      In the last 7 seven years of repayment 40% of the actually used amount, in 14 equal installments 4,95%

      After prior notification any amount drawn under the loan can be prepaid par value and without any additional charges at any times.