Hungary reconsiders Paks II as new government reviews major nuclear plans

Hungary’s plans to expand nuclear capacity are entering a more uncertain phase after the election victory of Péter Magyar and his Tisza party. The new government has announced a comprehensive review of the Paks II project, putting one of the country’s most consequential long-term energy investments back under political and strategic scrutiny.

Paks II timeline and current status

Paks II is largely financed through a Russian state loan and centers on the construction of two VVER-1200 reactors. Development has progressed over several years, with key early milestones already completed—most notably the pouring of first concrete in early 2026. Grid connection is currently planned for the early 2030s, and the project remains the only Russian-led nuclear construction undertaking currently underway within the European Union.

Rosatom signals openness to talks

Following Hungary’s announcement of a review, Rosatom said it is prepared to engage with Hungary’s new administration on all aspects of the project. CEO Alexey Likhachev said the development has been carried out transparently and with input from international experts, including oversight aligned with International Atomic Energy Agency (IAEA) standards.

Energy security case versus reassessment pressure

Supporters argue that completing Paks II would materially strengthen Hungary’s energy security. They contend it could allow nuclear power to become a dominant share of domestic electricity generation and potentially create export opportunities. Yet the incoming government faces a difficult trade-off between its campaign promise to reassess prior agreements and the financial and strategic implications of any modification or cancellation.

Contract risks and baseload needs

The stakes are heightened by Hungary’s existing nuclear footprint. The current Paks Nuclear Power Plant operates four reactors built in the 1980s, forming a central part of Hungary’s electricity system. The planned expansion would add two modern units at the same site, increasing installed capacity and reinforcing nuclear’s role in providing baseload generation.

Analysts also point to potential contractual penalties if the project is canceled, alongside Hungary’s ongoing need for stable baseload capacity. Rosatom’s willingness to discuss technical and financial parameters may reflect confidence in the project’s legal structure while also aiming to reduce prolonged political uncertainty around its future.