Péter Csiba, CEO of MVM Zrt., the state-owned energy company which operates the Paks nuclear plant, is concerned about the future of energy prices in Hungary. According to nol.hu, energy prices are on the decrease and will continue going down. If they do so (and stay down) in the foreseeable future, the Paks 2 expansion will require a lot of state aid.
The government has taken out a EUR 12 billion loan in anticipation of rising electricity prices.
Why is this important?
“We clearly see that energy prices will decrease in the future,” Csiba said. “A few years ago we were talking about 90-100 EUR per Mwh. Now we are around 30 and we don’t really see this increasing in the future.”
During last week’s government marathon press conference, Minister Overseeing the Office of the Prime Minister János Lázár cited a 2015 study commissioned by the government according to which the Paks 2 expansion would break even if the energy prices can stay around 50.5-57.4 EUR per Mwh for the next several decades.
According to Paks operator MVM Zrt., energy prices are going down and staying down.
The European Commission has expressed concerns about Hungary’s deal with Russia to build two reactors at the Paks Atomic Energy Plant. If it turns out that the Hungarian government’s calculations are overly optimistic and losses ensue, the state will have to step in and cover its losses. This, in turn, would violate EU competition laws and would constitute restricted state aid.