by Staff Writers
Budapest (AFP) May 30, 2016
Falling energy costs, including from the rise of renewables, are making the controversial expansion of Hungary's sole nuclear plant with Russian reactors less viable, one of the country's energy chiefs said Monday.
"Due to the development of renewable resources, we can see clearly that the price of energy will fall in the future," said the chief executive of Hungary's national electricity company MVM, Peter Csiba, in an interview in the leading Hungarian daily Nepszabadsag.
Construction of the two 1,200 megawatt reactors at the Paks plant outside Budapest is considered a strategic project by Prime Minister Viktor Orban, but is viewed sceptically by the opposition and the European Commission.
The 12.5-billion-euro ($13.9 billion) deal, awarded in 2015 to Russia's Rosatom, was based on a provisional price of electricity of 57 to 65 euros per megawatt/hour, according to Csiba.
Wholesale electricity prices were around 90 to 100 euros per megawatt/hour until quite recently, but "we're around 30 euros now" due to the fall in oil prices and the rise of renewables, said Csiba.
The head of MVM, which operates Paks, indicated he would prefer to invest in renewable energy.
Hungarian opposition groups have critcised the lack of transparency in awarding the contract to Rosatom.
The terms of the deal, due to be financed with a 10-billion-euro loan from Moscow, has been classified by the Hungarian government for 30 years.
Brussels said in November last year it was opening an in-depth probe to determine whether the construction of the reactors was economically justified and ensure there was no illegal state aid.
The Hungarian government said recently it was willing to consider other financing for the reactors, construction of which is due begin in 2018 and be completed by 2023.
Paks, which contains four ageing Soviet-built reactors, currently produces around 40 percent of Hungary's electricity.
Nuclear Power News - Nuclear Science, Nuclear Technology
Powering The World in the 21st Century at Energy-Daily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|