The planned upgrade of Hungary’s Paks Nuclear Power Plant that has been criticised by Austria involves no state aid, the Prime Minister’s Office has said.
Presenting the government’s position, the office said in a statement that building two new blocks at the Paks nuclear power plant in central Hungary is a profitable investment, even amid free market conditions. The office responded to an official statement by Austria sent to the European Commission, in which that country complains that the Paks project had received illegal state aid for the “use of an unprofitable technology which would distort competition on the electricity market”. Energy producers using renewables in a cost efficient way could be prevented from reaching markets or could be squeezed out, the Austrian economy ministry said.
In response, the Prime Minister’s Office said that the Hungarian National Assembly has confirmed that it agrees with the long-term preservation of the current ratio of nuclear energy production every year since 2009, in view of the fact that it assures a supply of cheap and safe electricity to Hungarian households and industry.
“It is the firm standpoint of the Hungarian Government that the Paks II project does not include state funding and is also a competitive and profitable investment under free market conditions. The Hungarian Government officially notified the Commission of its standpoint on 22 May 2015. The Government’s standpoint has also been confirmed by the Rothschild Bank’s detailed economic analysis prepared using international comparative data, which is available in full on the project secretariat’s website and on the kormany.hu government portal”, the Prime Minister’s Office wrote in the statement.
via hungarymatters.hu and kormany.hu