Hungary: MVM to rethink NPP Paks for electricity price competiveness

, SEE Energy News

Hungarian state-owned energy company MVM believes that the market price of produced electricity will not be high enough in order to justify the investment in the construction of two additional reactors at the country’s sole nuclear power plant Paks.

According to the company’s new strategy for the period 2016-2020, electricity prices amounted to 90-100 euros/MWh several years ago, but the current price is about 30 euros/MWh with no indications that it will increase in the foreseeable future.

When the agreement for the expansion of NPP Paks was signed with Russian Rosatom in early 2014, MVM considered it as good investment which should be even made with its own funds. However, recent calculations show that the price of electricity during the 60-years operational life of new reactors should be between 50.5 and 57.4 euros/MWh in order to return the investment, while the Government expects that the price will be even higher, up to 65 euros/MWh.

The Management of MVM denied allegation that it is against the implementation of the project for NPP Paks expansion, but stated that the project will not even affect the strategy in the said period since it will not be completed by 2020. Since nobody can predict the prices after 2020, the company cannot say with certainty whether the project will be profitable or not, transmits

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