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HUNGARY

(updated on Mar. 2009)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

Hungary is a landlocked central European country. It has borders with Austria, Slovakia, Ukraine, Romania, Serbia, Croatia and Slovenia. It is strategically located astride main land routes between Western Europe and the Balkan peninsula as well as between Ukraine and the Mediterranean basin. Most of Hungary is a fertile, tolling plain lying east of the Danube River and drained by the Danube and Tisza rivers. In the extreme Northwest is the Little Hungarian Plain. South of that area is Lake Balaton (648 km²). Hungary covers an area of 93,032 square kilometres.

Hungary is a Republic. The National Assembly, consisting of 386 members elected to four-year terms, is the legislative body. The National Assembly elects the President. At present, the representatives of five political parties are the members of the National Assembly. The last election was in May 2006, the next one will be in 2010.

Hungary has a continental climate with Mediterranean and Atlantic influences with humid winters and warm summers. The average temperature in January is 2 °C (28 °F) and in July 23 °C (73 °F).

In 2007 10 045 000 people lived in the country and the population density is 108 inhabitants per square kilometre. The long-term population curve - reflecting losses of war periods and of the 1956 revolution - was increasing up to 1980, and then it showed a downward trend. At present according to data of 2007 the natural decrease of population is 0.35%, while there is an increase of 0.14% due to migration from other countries. The net decrease was 0. 21% in 2007.  Following table gives the population statistics till 2006.

TABLE on POPULATION INFORMATION

 Source: World Bank World Development Indicators

1.1.1.  Economic Indicators

In international terms, Hungary has a relatively limited economic potential with a sensitive foreign economy. Based on its GDP, Hungary is ranked as a relatively small unit in the world economy. The Hungarian economy has undergone a dramatic transformation since 1995 and until 2005 the gross domestic product per employed person showed continuous improvement. (According to the data of the Hungarian Central Statistical Office the GDP/capita increased from 4284 USD to 9975 USD at current USD between 1995 and 2004). Hungary has become the member of the European Union in 2004 and it greatly influenced its economical development. Simultaneously with somewhat moderating Western European boom, the Hungarian economy was characterised by minimally decelerating growth that still exceeded 4% in 2005. From 2006 the rate of the growth of GDP started to decrease and in 2007 it was only 1.3% . According to detailed data the slowing down compared to former years results from the downfall of consumption since the beginning of the year from the expenditure side, which was partly offset only by growing capital formation and favourable external trade trends. The demand-reducing effect of economic policy measures, the drop of real wages and the cut of social transfers by the government may be mentioned among the reasons for the setback. Following an annual rise of 6.6% in 2006, actual final consumption of government was down by 3.2%, thus total actual final consumption in the national economy was 2.2% lower than in the preceding year.

From production side, the industrial boom relying on exports somewhat offset the slowing dynamics and falling performance of other branches. The value added by industry increased by 6.2%, of which manufacturing by 6.8%. There was a 12% decline in construction, primarily resulting from the slowdown of works concerning public road network developments. The value added by agriculture, which represents 4.2% of gross value added, dropped by 13%. Among services branches the volume of value added by typically state financed services was down by 2.1%, while an increase was observed for the remaining branches. It was the value added by transport, storage and communication branches that went up the most, by 4.0%, and trade branches the least, by 1.5%.

In 2007 average gross earnings lessened by 1.5%, while average net earnings by 0.2%. Within this latter an 8.5% growth of earnings was registered in the private sector. Real earnings were down by 6.8% compared to a year before.

The number of employed persons was by 1.7% less than a year before. The unemployment rate rose to 8.1%. Labour force trends were influenced by earlier retirements due to the change of legal rules on pensions, and also by the low number of persons working in “supported forms of employment” (e.g. public works).

Consumer prices were about 7.0% higher compared to 2006. It was food prices that went up the most, by 13%, but prices of household energy, other commodities and fuel increased at or above the average rate, too. Prices of consumer durables and clothing articles diminished.

Since revision of budgetary plans in 2006 budgetary processes have been progressing. The measures aimed at decreasing expenditures and increasing revenues improved the state budget deficit. In 2007 the current account deficit was about 7% less than in the previous year.

TABLE 1. PER CAPITA GROSS DOMESTIC PRODUCT (GDP) AT CURRENT PRICES, 1990-2007
 

Source: Hungarian Central Statistical Office

TABLE on GROSS DOMESTIC PRODUCT (GDP)

 Source: World Bank World Development Indicators

1.1.2.  Energy Situation

Hungary has estimated coal reserves of more than 3,3 billion tonnes. The bulk of this is lignite, with 2,9 billion tonnes, followed by 0,2 billion tonnes of brown coal and 0,2 billion tonnes of hard coal. The coal found in Hungary has comparatively low calorific value with high ash and sulphur content. Only lignite deposits in the north-east region of Hungary represent profitable and prospective possibility of mining. An important element of coal mining is the rigorous application of environmental protection requirements. Although the major share is used for power generation, a significant amount of coal was used for heating and cooking in households and communal facilities until the early 1990s: since that it has rapidly declined. Domestic production has declined for the last two decades. Hungary produced 2,2 Mtoe of coal in 2004, and imported 1,15 Mtoe. Net imports amount to over 35% of total supply and come mostly from the Czech Republic, Poland and Russia.

The decreasing importance of coal is also illustrated in Table 2.

TABLE 2. TOTAL PRIMARY ENERGY SUPPLY (TPES) %

 

TABLE on ENERGY STATISTICS

Source: IAEA Energy and Economic Database
 

Hungary is a producer of crude oil. Oil reserves are put at 58m tons. Gas reserves are estimated to be about 113 billion m3. Domestic crude oil production will most probably drop by 8-15% and natural gas by 7-10% per annum in the forthcoming 10 years.

The mining of uranium began in Hungary in the 1950s. Under a special arrangement, the total production was exported to the former USSR. Hungary's only uranium ore mine, located in the south of the country, was the primary source nuclear fuel of the Hungarian nuclear power plant. As production costs were above world prices, the mine closed down in 1997.

The energy supply of the country was secure in 2005. Energy demand was 1130 PJ, 27 Mtoe in oil equivalent (3.9% higher than in 2004). The increase of the energy demand was partly due to less favourable weather condition and partly to industrial expansion (with special regard to construction (17.8%) and the chemical industry (7.2%)). The total domestic energy production was 1.6% higher in 2005 than in the previous year. Energy imports rose by 10% compared to 2004. The share of hydrocarbons within the imported resources was 90.5%.

1.2.  Energy Policy

The Hungarian energy policy aims at maintaining a balance between security of supply, cost-effectiveness, energy efficiency and protection of the environment. The EU accession in 2004 has changed the energy outlook in Hungary. The transposition of the Acquis Communautaire and the unification of Hungarian markets with EU markets, including conformity with the relevant EU directives, are acting as the main drivers for energy policy development.

In February 2008 the National Climate Change Strategy for the period of 2008-2025 was adopted by the Hungarian Parliament. The strategy is emphasizing the need for increasing energy efficiency, energy savings and the use of renewable energies (wind, solar, geothermic, biomass). It does not mention nuclear energy as part of the concept.

In April 2008 a resolution on a new energy policy concept for the period of 2008-2020 was adopted by the Parliament. The main goals are aiming at increasing the security of supply, competitiveness and sustainability. It also includes the emphasis on increasing energy efficiency and energy saving as well as the use of renewable energy forms. It deals with the future of nuclear energy, too. According to the resolution the Government should start working on the preparation of the decision on new nuclear capacity for the replacement of the old plants and the proposal should be submitted to the Parliament in time. The Government should create the necessary conditions for the implementation of the programs aimed at the final disposal of radioactive wastes. The Government should inform the Parliament on the implementation of the energy policy at least in every two years and in case of need it should propose the review of the concept.

Hungary has successfully introduced the legislation laying the foundation for market reform in line with the most recent EU Gas and Electricity Market Directives. From 1 July 2007, all electricity and gas customers became fully eligible to freely select their supplier. A new act on electricity (Act LXXXVI of 2007) has been adopted by the Hungarian Parliament. The aim of the new act is full liberalization of the electricity market in order to enhance economic competitiveness and provide sustainable security of supply. The Act is in harmony with the requirements of the European Union. The provisions of the Act came into force partly from 15 October 2007 and from 1 January 2008. In the beginning of 2008 the electricity market has become fully liberalized. Nevertheless 2008 is considered a transition period, the players of the market have to learn the new rules. Real market competition is expected in 3-4 years.

While many restrictions have been decided to reduce budget deficit the government is spending considerable funds on a household gas subsidy that encourages gas use, and is not tied to real social needs. While residential gas consumption is subsidized directly by the government, Hungarian electricity consumers are also paying for substantial subsidies to the renewables and CHP (combined heat and power) sectors through levies on their tariffs.

Taking into account the energy situation in Hungary the operation of the only nuclear power plant is of crucial importance. The design lifetime of the VVER-440/213 Units at Paks equals to 30 years, the operational license is formally limited in time by the planned operational lifetime. Like in other countries, the current Hungarian legislation for nuclear energy allows the renewal of the operation license, if the safety of the continuation of the operation can be demonstrated, and the renewal is approved by the responsible authorities.

As concerning public opinion on nuclear energy according to the latest poll conducted in June 2008 73 % agrees with the operation of Paks NPP and 23 % opposes it. Moreover 49% even supports the construction of a new unit at the Paks site while 39% is against it.

1.3.  The Electricity System

1.3.1.  General electricity policy

The reform of the electricity industry commenced in 1994-95, when Act No. XLVIII of 1994 on the Production, Transportation and Supply of Electricity was formulated and came into effect. The Hungarian Energy Office was established in 1994. The privatisation of the electricity sector began and took place in several phases. At present, the majority of power stations and 100% of the electricity suppliers (today called network and service provider companies as a result of privatisation) are privately owned.

In Hungary the electricity policy is integrated part of the energy policy. The most important document which based the Hungarian electricity market liberalisation was „Principles of Hungarian Energy Policy and a New Business Model”. It was adopted by the Government in 1999 (Government Resolution No. 2199/1999). 

Hungary became the member-state of the European Union on 1st May 2004 and it necessitated further harmonizing the Hungarian legal framework to the EU law. An important step of the harmonisation was the adoption of a new Act on Electricity LXXXVI (2007) which had been passed by the Parliament on 25 June 2007. The harmonisation and the electricity policy objectives have reflected in the Act. The aim of the Act is the effective operation of the competitive electricity market. Access to the electricity grid is guaranteed at regulated prices. Transmission, distribution and system operation tariffs are set and published by the Minister of Transport, Telecommunication and Energy. New capacities are established on a commercial basis through an authorization process. The new Act regulates the rules of full market opening effective from 2008.

The figure below shows the simplified model of the Hungarian electricity industry.

The total installed capacity of the electricity industry was 9014 MW(e) in 2007. It increased by 323 MW(e) from 2006 to 2007. 

The capacity structure of the Hungarian electricity system is presently well balanced, with about 40% nuclear share. The electricity production from renewable energy sources is growing in accordance with the EU directive on green electricity. Though the Hungarian target is 3,6% for 2010 nearly 5 % of the electricity came from renewable sources (wind, hydro and biomass) in 2007. The Hungarian energy supply is almost 70% import dependent, therefore its security is a crucial priority of the national energy strategy. The safe, successful and profitable operation of the state owned Paks Nuclear Power Plant greatly contributes to meet this challenge. The obligatory stockpiling of nuclear fuel for two years is also an essential element in ensuring the stability of supply in case of any disturbances in import. In 2007 the gross domestic electricity production of Hungary increased by about 11% (39.129 TWh compared to 35.542 TWh in 2006), the net electricity import decreased by about 45% (from 7.208 to 3.987 TWh). The demand for electric energy in 2007 grew by about 3% (43.969 compared to 42.750 TWh)

Electricity production in Hungary (GWh)

1.3.            Stakeholders in the energy administration

The responsibility of the reliable, efficient and environment-friendly energy supply for Hungary belongs to the Ministry of Transport, Telecommunication and Energy (www.khem.gov.hu) established in 2008. Directly under the top political level the energy issues handled by the State Secretary for Energy. Development, competitiveness, security and sustainability are the key words directing the activity of the ministry.

The Hungarian Energy Office (MEH) (www.eh.gov.hu) is currently responsible for licensing energy suppliers, supervising the satisfaction of consumer demand as well as the standards of service provision, and protecting consumer interests. In a liberalized electricity and gas market the MEH has become more autonomous and its duties and competences have increased. The MEH is a governmental office with separate and independent financial management. The MEH is self-financing. Licensees will be charged supervisory and administration fee for their activities. Following a proposal by the Ministry of Transport, Telecommunication and Energy, the prime minister will appoint and releases the MEH president and vice-president. Their appointment is for a six-year term. MEH resolutions can only be challenged and amended in court.

Ministry of Environment and Water manages reduction of pollutants from the energy industry. The Ministry has main responsibility on climate change issues, including the EU ETS. The Ministry is also dealing with some aspects of sustainable energy management (energy efficiency, energy saving and renewable issues). Its activity mainly concerns the energy sector through environmental (air, water-quality, waste management, etc.) regulation. The Environmental Policy Department of the Ministry integrates the environmental aspects into other  policies, therefore environmental protection is an integral part of sustainable energy policies.

1.3.3.   Industry structure

         In the  last decade, Hungary made substantial progress in restructuring its electricity sector and creating a market-oriented fully EU conform regulatory framework. Today, the power industry is restructured and mainly privatised. Its prices cover costs. 

 The Hungarian Power Companies Ltd. (MVM Zrt.) (www.mvm.hu) plays a decisive role in the secure and reliable electricity supply of Hungary. The MVM Zrt.  – together with the Group it controls – constitutes the most significant domestic group of companies in national ownership. The members of the Group are well-known actors in the Hungarian electricity sector. MVM Rt. is primarily responsible for the public utility wholesale of electricity with a turnover covering around three-fourths of the whole domestic power wholesale. The transmission activity of MVM Rt. is the other key factor in the domestic power supply. On the high-voltage transmission lines the company transmits the electric power obtained from domestic power plants and from import resources to the distributors, who directly sell it to the consumers. The MVM Group plays an active part in power generation as well. It is primarily the Paks Nuclear Power Plant that has a crucial share in the domestic power generation and therefore, in ensuring a favourable price for electric energy. In 2005 the still indirectly (through MVM) state owned Independent MAVIR Rt. merged with MVM Rt. In consequence of a new Governmental Decree (246/2005(XI.10)) about the execution of the former Electricity Act (CX. 2001), the activity and responsibility of MAVIR has became much wider. Until the end of 2005 MAVIR ZRt. had the licence of System Operation, now from the beginning of 2006 MAVIR ZRt. has received a licence for Transmission as well.

Licensees in electricity generation:

AES Tisza Erőmű Kft.  www.aes.hu

Bakonyi Erőmű Rt.  www.bakonyi.hu

Mátrai Erőmű Rt.  www.mert.hu

PANNONPOWER Rt.  www.pannonpower.hu

Vértesi Erőmű Rt.  www.vert.hu (Member of the MVM Group)

Paksi Atomerőmű Rt.  www.npp.hu (Member of the MVM Group)

Csepeli Áramtermelő Kft.  www.atel.hu

Budapesti Erőmű Rt.  www.bert.hu

EMA-POWER Kft.  www.emapower.hu

GTER Kft.   www.gter.hu (Member of the MVM Group)

Transmission and public service wholesale licensee:

Hungarian Power Companies Ltd. (MVM Zrt.).  www.mvm.hu

System operation licensee:

Magyar Villamosenergia-ipari Rendszerirányító Rt. (MAVIR Zrt.))   www.mavir.hu

Distribution and public service supply licensees

There are six privatised regional distribution companies responsible for operation of networks with voltage 120 kV and below as well as supply for the customers.

Észak-dunántúli Áramszolgáltató Rt.  www.edasz.hu

Délmagyarországi Áramszolgáltató Rt.  www.demasz.hu

E.ON Dél-dunántúli Áramszolgáltató Rt.  www.eon-deldunantul.com

E.ON Tiszántúli Áramszolgáltató Rt.  www.eon-tiszantul.com

Budapesti Elektromos Művek Rt.  www.elmu.hu

E.ON Észak-magyarországi Áramszolgáltató Rt.  www.eszakdunantul.com

1.3.5.  Main Indicators of the Electric Market

TABLE on ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

Source: IAEA Energy and Economic Database  
 

TABLE on ENERGY RELATED RATIOS

Source: IAEA Energy and Economic Database
 

2.  NUCLEAR POWER SITUATION

2.1.  Historical Development and current nuclear power organizational structure

2.1.1.  Overview

The first Hungarian reactor was built for research purposes at Csillebérc on the outskirts of Budapest in 1959. The reactor, of soviet origin and refurbished by Hungarian experts after 30 years of operation, was put into operation again by the Atomic Energy Research Institute in 1993. The Budapest Research Reactor is a tank type reactor with 10 MW_th power.

The Nuclear Training Reactor of the Institute of Nuclear Techniques (INT) of the Budapest University of Technology and Economics was put into operation in 1971. Since then it takes part in education in nuclear field. It is a pool type reactor with 100 kW_th power.

In 1966, it was decided to construct a nuclear power plant in Hungary. The decision included two WWER-440 type, 230 model reactors. The construction work started in 1968, but it was interrupted in 1970 because, at that time, the oil-fired stations were considered to be more economic. The actual construction work started after the oil crisis in 1975. The final decision included four second generation reactors, i.e. WWERs-440/213, instead of the two 230 model reactors, all to be part of one nuclear power plant. The plant is located about 5 km south of the town Paks, on the right bank of the river Danube. Since 1987, these four reactors have been generating electricity to the Hungarian electric energy system. The installed capacity of the reactors was 4 times 440 MW(e). Earlier upgrades of the secondary circuit and turbine resulted in

cca. 470 MWe with an unchanged thermal capacity at all four units. An upgrade of the primary side has been decided to increase the nominal power by 8% to 1875 MWth, resulting in about 500 MWe generated power per unit. The upgrading process has been completed on units No. 4 and 1. It is ongoing and the power is being stepwise increased on unit No. 2. Unit No. 3 is now operating at a power level of 104%. The power increase at the latter two units is to be completed in 2009.

2.1.2.  Current Organizational Structure

Hungary`s national policy concerning the application of atomic energy is regulated by law. The basic purposes of Act CXVI of 1996 are those of protecting health and safety of the population and protecting the environment. The requirements of the Act state that the use of atomic energy is allowed only in a manner provisioned by law and under the permanent control of the competent authority. Regardless of what aspect of atomic energy is being considered safety enjoys priority.

Licensees:

Paks Nuclear Power Plant Ltd.; (www.npp.hu) (It has four WWERs-440/213 type power reactors.)

Public Agency for Radioactive Waste Management (www.rhk.hu). It operates the Interim Spent Fuel Storage Facility at Paks.

KFKI Atomic Energy Research Institute (www.kfki.hu) It operates the Budapest Research Reactor.

Institute of Nuclear Techniques of the Budapest University of Technology and Economics (www.reak.bme.hu/nti/) It operates the BME Training Reactor.

Governmental organisations with responsibility in nuclear field:

Hungarian Atomic Energy Authority (HAEA) (www.haea.gov.hu) regulates complexly the nuclear sector. Establishing the regulatory duties in connection with the safety of the peaceful application of nuclear energy, particularly with the safety of nuclear facilities under normal and accidental conditions and with nuclear emergencies is a basic task of the Hungarian Atomic Energy Authority. In addition, the HAEA is required to harmonise and handle the related public information activities. Acting independently and supervised by a minister appointed by the Prime Minister, the HAEA is primarily concerned with ensuring nuclear safety in accordance with the law. In May 2008 the Minister of Transport, Telecommunication and Energy has taken over the supervision of HAEA from the Minister of Justice and Law Enforcement. The Director General of the HAEA and his Deputies are appointed and relieved by the Prime Minister. The HAEA resolutions can only be challenged and amended in court.

The Ministry of Health undertakes the tasks of the authority regarding issues related to radiation protection and concerning the facility-level licensing and supervision of the storage of radioactive wastes. Other competent administrative bodies take part as special authorities in the licensing procedure of the Ministry of Health.

The Ministry of Environment and Water is responsible for establishing air and water quality standards, limits in radioactive releases from nuclear facilities, as well as for controlling the releases at the facilities to the environment.

Research Institutes:

 The KFKI Atomic Energy Research Institute (KFKI AEKI, Budapest) of the Hungarian Academy of Sciences operates the 10 MW_th Budapest Research Reactor. It is active in several fields of nuclear technology such as reactor physics, thermal-hydraulics, health physics, simulator techniques, reactor chemistry. (homepage: www.kfki.hu/~aekihp/)

 The Institute of Nuclear Research (ATOMKI, Debrecen) of the Hungarian Academy of Sciences operates a 20 MeV cyclotron and a 5 MeV Van de Graaff accelerator, and is active on several fields of nuclear physics and nuclear techniques. (homepage: www.atomki.hu)

- The "Frédéric Joliot Curie" National Research Institute for Radiobiology and Radiohygiene (OSSKI, Budapest) performs a wide spectrum of research including the biological effects of radiation and radioisotopes, radiohygiene (operational and environmental), sterilisation, detoxification etc. (homepage: www.osski.hu)

- The Institute for Electric Power Research (VEIKI, Budapest) works in the field of safety analysis of nuclear power plants, PSA and severe accidents, noise analysis, etc. (homepage: www.veiki.hu)

- The Institute of Nuclear Techniques of the Budapest University of Technology and Economics (BME NTI) operates a research reactor for training purposes, teaches nuclear technology for engineers, physicists, chemists and environmentalists, and performs research in some specialised field. (homepage: www.reak.bme.hu)

- The Power Engineering and Contractor Co. (ETV-ERŐTERV Co., Budapest) works in the field of design, construction, commissioning and operating management of nuclear facilities. Its activities include waste management (treatment, storage and disposal). (homepage: www.etv.hu)

- The Institute of Isotopes (MTA IKI) of the Hungarian Academy of Sciences performs a wide variety of research related to the use of radioactive materials and nuclear techniques, among them a research and development program for nuclear safeguards. They provide the expert support and the laboratory backgrounds for the HAEA. (homepage: www.iki.kfki.hu)

2.2.  Nuclear Power Plants Status

There is only one nuclear power plant in operation with four WWER reactors. Both the technical as well as the economic experience with the Paks plant have been so far very satisfactory. The plant runs in base load and sells electricity to MVM under a long-term contract.

TABLE on STATUS OF NUCLEAR POWER PLANTS

2.3.  Supply of NPPs

There are no NPP suppliers in the country, the main components of the Paks NPP were made abroad. (i.e. in Russia and Czech Republic). The main constructor was AEE (Atomenergoexport) and the main architect ERBE -EROTERV (Hungary). The manufacture of many components of the Russian-designed WWERs was done in the former COMECON countries under a multilateral agreement.

2.4. Operation of NPPs

Paks Nuclear Power Plant Ltd. operates four pressurized-water units of type WWER‑440/V‑213: the moderator of the reactors and the coolant is light water. The four units were commissioned between 1983 and 1987 and they are equipped with all engineered safety systems, similar to the Western PWRs of the same vintage, including confinement of special pressure suppression system. Due to the conservative design, there are several safety merits of these reactors, which have been proved by the outstanding operational records of the plant.

The Paks Nuclear Power Plant generated 14677 GWh in 2007 providing 36.7 % of the Hungarian electricity production. This amount was generated by four units as follows: Unit 1: 3388.4 GWh; Unit 2: 3632.9 GWh; Unit 3: 3597.4 GWh; Unit 4: 4058.2 GWh. The total load factor for the NPP was 87.1 % (Unit 1  82.3%, Unit 2  86.2%, Unit 3  87.4%, Unit 4  92.7%). Considering the production value, 2007 was outstanding since the highest production value was reached in the history of the plant. In 2007 all the 59 reported events were below the INES scale, and only one unplanned reactor scram occurred at the Paks NPP.

In order to enhance its economic and operational effectiveness and to improve its market position, the Paks Nuclear Power Plant commenced an Economical Effectiveness Enhancement Program (EEP) in 2005, principal elements of which are as follows: power uprating, maintenance optimization, operating lifetime extension. The objectives of the EEP have been accomplished time-proportionally.

According to the schedule of the power uprating program the uprating of Unit 1 was performed in 2007. (Unit 4 was already uprated in 2006). During the annual outage of Unit 1 the specialists performed the required modifications according to the license issued by the Hungarian Atomic Energy Authority. After the outage the power of Unit 1 was increased step by step and it reached the licensed value of 108 % on 19 July 2007. Thus the nominal electric capacity of Unit 1 reached 500 MWe.

Preparation of the lifetime extension (license renewal) program was continued in 2007, the main steps of which were as follows: elaboration and foundation of the conditions of the operation for further 20 years beyond the planned lifetime of the units of Paks NPP; foundation of the operating license for the extended period and technical preparation of the licensing procedure.

Based on the Environmental Impact Study (EIS) the South-Transdanubian Inspectorate for Environment, Nature and Water issued the environmental license first in October 2006 for extended operation of the units of Paks NPP beyond the originally planned operating lifetime. Due to an appeal it was reconfirmed by the authority of second instance at the beginning of 2007.

As a result of the Periodical Safety Review the Periodical Safety Report (PSR) and the Final Safety Report (FSR) of the Paks NPP have been updated after several years of preparation.

2.5.  Fuel Cycle and Waste Management

2.5.1.  Fuel Cycle

Hungary has 20,000 metric tons of exploitable uranium resources and 10,000 metric tons of additional reserves. There are three areas in Hungary where uranium occurrences are known, but only one region in Mecsek Mountains has been exploited. Hungary was mining uranium ore, which was processed to yellowcake at Mecsek and then shipped to Russia. Fuel cycle services were guaranteed by the former USSR when Hungary purchased Soviet reactors including the fabrication of fuel assemblies, the shipping of the fabricated fuel assemblies to Hungary, and the return of spent fuel to the former USSR. Hungary does not have other fuel cycle capabilities such as fuel conversion, enrichment, and fabrication.

There are no reprocessing capabilities in Hungary, and no plans to develop any. Hungarian spent fuel has been reprocessed in Russia and the recovered plutonium does not have to be returned to Hungary. Hungary has at present no plans for recycling plutonium as fuel.

A new fuel management strategy was initiated in 1993 and completed in 1995. The strategy includes the creation of the conditions for purchasing nuclear fuel from second supplier and the preparatory work for the use of a new type of Russian fuel assembly with profiled enrichment to allow changeover to 4 year's fuel cycle. The first Russian produced profiled fuel, with a mean enrichment of 3.82%, was loaded into unit 3 during 2000.

2.5.2.  Spent Fuel

According to the Hungarian-Soviet Inter-Governmental Agreement on Co-operation in the Construction of the Paks Nuclear Power Plant, concluded on 28 December 1966, and the Protocol concluded on 1 April 1994 attached to this Agreement, the Soviet and/or Russian party undertakes to accept spent fuel assemblies from the Paks Nuclear Power Plant in such a manner that the radioactive waste and other by-products arising from the reprocessing of such fuel is not returned to Hungary. Until 1992 the return of the spent fuel assemblies was conducted without problems, under conditions which were very favourable for Hungary, but which nevertheless deviated from normal international practice. Following the collapse of the Soviet Union however, this method of returning spent fuel became less and less reliable. For this reason and in the interests of ensuring the undisturbed operation of the nuclear power plant, it became necessary to find an interim solution (50 years) for the storage of spent fuel assemblies.

The Hungarian Atomic Energy Commission issued a licence on 4 February 1995 to the Hungarian Power Companies Ltd. for the construction of a spent fuel interim dry storage facility at the Paks site. The GEC Alsthom's modular dry storage technology was chosen. The facility is designed to store spent fuel for 50 years and was commissioned in 1996. The advantage of the modular system is that the modules can be built at different times and handled separately from each other. The first section of the Interim Spent Fuel Storage Facility consisting of three modules was put into operation in 1997. Expansion of the facility is going on in accordance with the increasing needs of the Paks NPP, and by the end of 2007 already 5107 fuel assemblies had been in interim storage.

2.5.3.  Waste Management

The basic regulation in force at present, the Act CXVI of 1996 on Atomic Energy, expresses Hungary’s national policy in the application of atomic energy. Among other aspects, it regulates the management of radioactive waste and authorises the Government and the competent Ministers to issue executive orders specifying the most important requirements in this field. The Hungarian Parliament approved the present Act on Atomic Energy in December 1996; the Act entered into force on 1 June 1997. For radioactive waste repositories the Act prescribes that Parliament’s preliminary approval in principle is required to initiate activities for preparing for their establishment.

In accordance with the basic rules laid down in the Act, radioactive waste management shall not impose any undue burden on future generations. To satisfy this requirement, the long-term costs of waste disposal and of decommissioning of the nuclear power plant shall be paid by the generations that enjoy the benefits of nuclear energy production and applications of isotopes. Accordingly, by the Act and its executive orders, a Central Nuclear Financial Fund was established on 1 January 1998 to finance radioactive waste disposal, interim storage and disposal of spent fuel, as well as the decommissioning of nuclear facilities. The Government authorised the Director General of the Hungarian Atomic Energy Authority to establish the Public Agency for Radioactive Waste Management; this agency has been in operation since 2 June 1998.

On the basis of the Act, the Public Agency for Radioactive Waste Management shall design and carry out radioactive waste management in such a way that it shall be safe during the whole duration of the activity and         it shall not affect human health and the environment abroad to a greater extent than the accepted value within the country.

In the field of radioactive waste management the following projects are going on:

a) Disposal of high level and long lived radioactive waste

In 1995 a programme was launched for solving the disposal of high level and long lived radioactive wastes. (Even if the spent fuel of Paks NPP can later be shopped back to Russia a domestic repository must be created for other high level waste, including decommissioning waste). The programme mainly focuses on investigations in the area of the Boda Claystone Formation. An underground laboratory is to operate from 2017 to 2032, and the repository is due to be operated by the end of the 2040’s.

b) Disposal of low and intermediate level radioactive waste from the Paks NPP

For the disposal of low and intermediate level radioactive waste from the Paks NPP – following a country wide screening and ensuring public acceptance – explorations have been carried out in the vicinity of Bátaapáti (about 45 km south-west of Paks). Reflecting the results of the extensive research work carried out, the Hungarian Geological Survey declared the site as geologically suitable for housing a repository. In November 2005, after a decade spent with siting in the vicinity of Bátaapáti (Tolna County) for a L/ILW geological repository the Hungarian Parliament gave green light for construction by its resolution 85/2005. (XI. 23.) OGY, giving its preliminary approval in principle for the construction. it is a formal requirement in accordance with the Act on Atomic Energy. The fact that at the vote on the joint resolution about the life-extension of the Paks NPP and the waste repository 96.6 % of the lawmakers voted in favour, clearly shows that in these questions there is a broad political consensus in Hungary. Prior to the vote in Parliament, residents of Bátaapáti voted 91 % in favour of having the repository, at a local referendum.

In 2007 the program progressed according to the plans. Underground research and licensing activities, as well as construction work were carried out. The investment is facilitated by the Government Decree No. 257/2006. (XII. 15.) Korm. declaring that the licensing procedure of the repository is of outstanding importance. The Decree requires priority for the licensing procedure and shortens the deadlines. It was an important step in this procedure that the competent authority granted the license for the construction of the repository on 14 May, 2008. The operation licence for the surface part of the repository was issued on 25 September 2008 and the National Radioactive Storage Facility started to accept wastes from the Paks NPP in December 2008.  

c) Radioactive Waste Treatment and Disposal Facility

The near-surface repository for institutional low and intermediate level radioactive wastes, the Radioactive Waste Treatment and Disposal Facility in Püspökszilágy, was commissioned in 1976. The disposal capacity is 5040 m³, and by the end of 2004 the repository became full. However, according to long term plans, the repository is expected to be in operation for additional decades, receiving radioactive waste from the small-scale producers of the country. To this end, measures are to be taken to provide additional disposal capacity within the site. The removal of certain long-lived and high activity spent sources from the vaults within the framework of the safety enhancement programme provides a good opportunity to achieve this goal.

A recent achievement in the facility is the conversion of the existing treatment building into a centralised interim store that can serve as a ‘buffer storage’ until new disposal capacity is available in the repository. The renovated building is also designed and licensed for the interim storage of long lived radioactive waste, sealed sources, until a high level waste repository will be available.

2.6.  Research and Development

Legal framework for the implementation of R&D program is established in the Act on Atomic Energy (Act CXVI of 1996 on Atomic Energy), according to which the technical support activities needed for improving the safety of the peaceful application of nuclear energy shall be financed via the HAEA. Thus it is the responsibility of the HAEA to manage the scientific-technical support for the nuclear safety regulatory activities. For managing the quality of such a complex program the HAEA defined its basic principles and requirements for performing technical support activities. The scientific-technical support is provided by a group of scientific-technical institutions and other engineering organizations (Technical Support Organizations – TSO). As a rule, the scientific-technical co-operation with the Partner TSOs (with a wide range of competency in the nuclear facility operation and regulation) is based on a long term memorandum accepted and signed by both the HAEA and the Partner TSOs. Up to now, there are several strategic Partner TSOs, like the KFKI Atomic Energy Research Institute AEKI, the Nuclear Power Division of VEIKI Institute for Electric Power Research Co. and the Nuclear Technology Institute of Budapest Technical University BME-NTI. The requested technical support from a TSO is described in a contract in which the deadline and the expected quality are further defined. In urgent regulatory matters the strategic TSO Partners provide technical support quickly and flexibly on a free of charge basis. The system of TSOs ensures that the HAEA has appropriate engineering and scientific reserve capacities to handle situations, which need fast and technically correct decisions.

To efficiently harmonize the TSO co-operation, the HAEA has elaborated a mid term R&D concept which has been regularly updated. The recent one is valid for the period 2005-2008. The R&D concept assigns the main goals, the area of the support program and the most important requirements for competencies of contractors.

Areas of R&D activities change time by time, new safety upgrading measures and operation improving modifications come up at the licensees, age dependent and decommissioning related tasks arise and also the nuclear safety regulation has to be upgraded periodically. The most important R&D areas are:

-         Support of regulatory activities (evaluation of safety analyses, development of alternative computer codes, questions related to the behaviour of the fuel in given conditions);

-         Support of activities related to the power upgrading and operational licence prolongation (ageing effects regulation);

-         Decommissioning;

-         Operational safety (human performance, safety culture evaluation, event analysis techniques)

-         Support to prepare risk informed nuclear safety regulation;

-         Design basis and severe accident analyses.

Collection of data about knowledge and competencies of TSOs was started in 2005 and 18 institutions have been surveyed about their competencies and co-operation affinity in 10 main areas of regulatory interest divided into 48 specific sub areas. As a result, it was concluded that in Hungary all major scientific-technical areas important for nuclear safety were covered by research or technical institutions and in every of the 48 sub areas of regulatory importance there were at least two independent experts.

The Hungarian research organisations continued the necessary analytical activities related to the Paks NPP lifetime extension. The analysis of the integrity of the primary circuit has led to satisfactory results, however, some further refinement of the methodology is still needed in order to avoid technical measures.

The introduction of burnable absorbers is the next important modification at Paks NPP. This will compensate for the increased fuel cycle costs of cores at power uprated with 8%. The R&D background necessary to apply burnable absorbers is fully available in Hungary, however, appropriate core monitoring still requires research work. This research work is based on detailed measurements of flow mixing and temperature distributions within the fuel assemblies.

After licensing the lifetime extension, Paks NPP is expected to be operated without major technical modifications and will not give so many safety research tasks to research organisations. However, lifetime extension will presumably cover important plant modifications, like I&C reconstruction. If the construction of new nuclear units in Hungary will be approved, the research organisations will be definitely involved in the licensing and construction process. The strategy of the country and the region concerning the closure of the fuel cycle and the final disposal of spent fuel and high activity waste should be elaborated and this represents a major challenge to the Hungarian research organisations.

2.7.  International Co-operation and Initiatives

In Hungary both the Licensee and the Authority maintain wide-ranging relations with various international organizations, with other countries and institutions involved in the design, manufacture, installation and operation of nuclear facilities and research institutes.

These relations serve as means of exchanging knowledge and experience. The fact that Hungarian experts are held internationally in high esteem is demonstrated by their active role on different committees, with many of them being board members of international organizations or invited as experts.

Hungary is Member of the International Atomic Energy Agency (since 1957) and the OECD Nuclear Energy Agency (since 1996).

Hungary has bilateral governmental agreements with Australia, Austria, Canada, Croatia, the Czech Republic, Germany, Romania, Russia, the Slovak Republic, Slovenia, Ukraine, the United States of America.

There are agreements on mutual information exchange between the Hungarian Atomic Energy Authority and other regulatory bodies including that the Czech Republic, Romania, the Slovak Republic and the United States of America.

Regional programmes organised by the EU and the International Atomic Energy Agency play an important role in the co-operation between the regulatory bodies of the neighbouring countries. Moreover, the Hungarian Atomic Energy Authority (HAEA) is taking part in a quadrilateral cooperation among the new EU member states including Czech Republic, Slovak Republic and Slovenia.

The Hungarian Atomic Energy Authority takes part in several international co-operations including

-  European High Level Group on Nuclear Safety and Waste Management organised by the EU (cooperation to progressively develop a common understanding and furthering common approaches in priority domains related to the safety of nuclear installations)

-  VVER Forum (established by the regulatory bodies of countries operating Soviet designed pressurised water reactors)

-  Standing committees of the OECD Nuclear Energy Agency (CNRA, CRPPH, RWMC)

-  WENRA (Western European Nuclear Regulatory Associations)

-  NERS (association of countries with small nuclear programmes)

-  ESARDA (European Safeguards Research and Development Association)

-  Global Initiative to combat nuclear terrorism

-  GNEP (Global Nuclear Energy Partnership)

-   Zangger Committee (dealing with controlling the export of nuclear materials and equipment)

-   Nuclear Suppliers Group ((NSG) dealing with controlling the export of nuclear materials and equipment and the dual use materials and equipment).

The Paks Nuclear Power Plant is member of several international bodies of major importance including the World Association of Nuclear Power Plant Operators (WANO), the WWER-440 operators' club, the WWER users' group, the International Nuclear Safety Program (the so-called Lisbon Initiative), the Nuclear Maintenance Experience Exchange (NUMEX).

The Hungarian Nuclear Society is a member of the European Nuclear Society (ENS), and the Health Physics Section of the Roland Eötvös Physical Society is a member of the International Radiation Protection Association.

The technical support organizations of the HAEA take part in the international activities including the working groups of the OECD NEA.

2.8.  Human Resources Development

The Budapest University of Technology and Economics (BUTE) operates a training reactor with the nominal power of 100 kW. Therefore, this university has a special training program for the engineering-physicist students. The students may choose the nuclear technique module in the 4th and 5th years of their studies. Those who have any other kind of degree in engineering or science have a possibility to learn 2 more years at the BUTE to get a nuclear engineer secondary-degree.

There is a particle accelerator at the University of Debrecen which means another source for the specialists in the field of nuclear sciences.

At the Faculty of Science of Eötvös Lóránd University (ELTE), the students of the physics faculty also learn about nuclear techniques and practice at the KFKI Atomic Energy Research Institute.

Paks NPP

The Paks NPP has a special training program for newcomers. At the beginning they have to take part in nuclear courses, where they learn about the basis of radioactivity and about the operation of the NPP. Based on their future work position, they may take further courses on the primary and secondary circuit, on the electrical and mechanical systems of the NPP. There is a full scope simulator for the operator training. The special Maintenance Training Center – established in an IAEA`s model project – also plays a very active role in the staff training. The training system of the Paks NPP is operated on the basis of the IAEA Systematic Approach to Training (SAT) system.

Hungarian Atomic Energy Authority

At the HAEA NSD, the inspectors take part in a predefined training program, which is reviewed annually. The training plan is divided into three parts, mainly the training of newcomers, the refresher training and the specific training. The training plan also includes the utilization of results of the R&D projects.

Newcomers of the HAEA NSD have to complete a special training. It includes all important fields related to the HAEA NSD responsibility areas, and also special training courses at the nuclear power plant and at the other licensees. After the one year program the newcomers have to pass the so-called inspector exam, where they shall analyze real events regarding the licensing, supervision and investigation process of the HAEA NSD.

At the HAEA NSD a knowledge profile survey takes place biannually. The inspectors rate their knowledge profile in predefined expertise areas (regulation, quality assurance, construction of nuclear facilities, lifecycle of nuclear facilities, operation of nuclear facilities, technical-scientific background, safety analysis, radiation protection, management of nuclear and radioactive material, safety culture, human factor, supervision, nuclear emergency preparedness, office technology). The knowledge profile is evaluated according to the current needs.

The longer term training program contains training directions based on the knowledge profile survey and on the future projects and strategy of the HAEA NSD, for example: bigger systems of the Paks NPP, life-time extension at the Paks NPP, decommissioning, R&D projects, legal environment, etc.

3.  NATIONAL LAWS AND REGULATIONS

3.1. Safety Authority and the Licensing Process

Before 1991, the Hungarian Atomic Energy Commission (HAEC) managed most of the nuclear aspects, which were related to international relations, preparation for legislation, internal relations, and nuclear regulatory and licensing activities. The scope of activities and responsibilities of the HAEC were redefined in a Government Decree, which came into force on 1 January 1991. The HAEA, as a new, nation-wide central state administration organization was established under the supervision of the President of the HAEC. The revised Act on Atomic Energy adopted at the end of 1996 (Act CXVI of 1996 on Atomic Energy) and its Decrees on Implementation introduced further changes in the scope of authority and organizational structure of the national regulatory bodies related to nuclear safety.

Owing to the above-mentioned changes in competence, the licensing of nuclear facilities became the responsibility of HAEA. In addition, the regulatory control over certain constructional, technical radiation protection and nuclear accident prevention issues was also transferred into the scope of the authority of the HAEA.

Hungary’s accession to the European Union required a further strengthening of the regulatory bodies’ independence. To this end, the Parliament amended the Act on Atomic Energy in 2003. Pursuant to this amendment, the operation of HAEC was discontinued and one of the ministers of the Government appointed by the Prime Minister – currently the Minister of Transport, Telecommunication and Energy - was given the task to supervise the HAEA. The role of the Director General of the HAEA became more significant: he is responsible for giving an annual account to the government about the safety of the domestic application of nuclear energy, instead of the chairman of the HAEC, furthermore, he shall participate, with consultation right, in the sessions of the Government when any proposal related to the scope of activity of the HAEA is considered.

The amendment of the act established the Atomic Energy Co-ordination Council (AECC), whose most important tasks are to harmonize the activities regarding application of nuclear energy, nuclear safety and radiation protection, as well as to monitor the implementation of laws and regulations and exercise regulatory authority.

The administrative duty of the nuclear safety authority comprises two types of tasks. On the one hand, the authority shall perform the relevant regulatory tasks and issue standards and requirements, while on the other hand, these regulations and requirements must be enforced (it is realized during the implementation of the licensing and inspection/enforcement procedures).

The supervisory competence of the HAEA involve the following activities: it enforces compliance with the provisions of relevant statutory regulations, ensures that the requirements of Nuclear Safety Regulations are observed and the conditions serving as a basis for regulatory licenses are met, and in addition, it monitors the implementation of the measures imposed by the Authority. The HAEA also carries out analysis and assessment activities that are basically related to its licensing and inspection responsibilities. In some cases, the official licensing and inspection activity also entails the initiation of law enforcement measures. Enforcement activities comprise all the measures to enforce the licensees to return to compliance with the regulations in the case of deviations, and also involve those that encourage participants to avoid repetition.

The latest amendment of the Act on Atomic Energy in 2005 (owing to the new general rules of the administrative regulatory procedures), introduced the continuous regulatory supervision as a new term. The supervision may be exercised through on-line computer systems connected to the authority office network. It gave the definition of clients in the licensing and permission cases. Furthermore, the deadlines of the administrative regulatory procedures were also modified for the HAEA and its co-authorities (60+30 days for equipment level licenses, 180+90 days for facility level licenses, 30+30 / 60+30 days for the co-authorities). In case of immanent danger, accident or emergency situation in the nuclear facility, it gave an opportunity for deviations from the procedural rules, as well.

3.2.  Main National Laws and Regulations in Nuclear Power

3.2.1.  List of the essential legal laws and decrees regulating nuclear power in Hungary

Acts, Law-decrees

Law-decree 12 of 1970 on the promulgation of the treaty on non-proliferation of nuclear weapons resolved by Session No. XXII. of the General Assembly of the United Nations Organisation on the 12th of June in 1968

Law-decree 9 of 1972 on the promulgation of the agreement concluded between the Hungarian People’s Republic and the International Atomic Energy Agency for the application of safeguards in connection with the Treaty on the Non-Proliferation of Nuclear Weapons, signed in Vienna on the 6th of March in 1972

Law-decree 28 of 1972 on the promulgation of the prohibition of disposal of nuclear and other mass-destructive weapons in the bottom of the seas and oceans resolved by Session No. XXV. of the General Assembly of the United Nations Organisation on the 7th of December in 1970

Law-decree 8 of 1987 on the promulgation of the convention on physical protection of nuclear materials

Act CXVI (1996) on Atomic Energy

Act I of 1997 on the promulgation of the Convention on Nuclear Safety concluded in Vienna on the 20th of September in 1994 under the umbrella of the International Atomic Energy Authority

Act L of 1999 on the confirmation by the Republic of Hungary and on the promulgation of the Comprehensive Test-ban Treaty resolved by the General Assembly of the United Nations Organisation on the 10th of September in 1996

 Act LXXIV of 1999 on Disaster Management

Act XC of 1999 on the confirmation and promulgation of the Additional Protocol signed in Vienna on the 26th of November in 1998 in connection with the agreement for the application of the safeguards concerning the treaty on non-proliferation of nuclear weapons, concluded between the Republic of Hungary and the International Atomic Energy Agency and signed in Vienna on the 6th of March in 1972

Act LXXVI of 2001 on the promulgation of the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management concluded under the International Atomic Energy Agency

Governmental decrees, decrees of the Council of Ministers

Decree of the Council of Ministers 28/1987. (VIII. 9.) on the promulgation of the convention on early notification of a nuclear accident signed in Vienna on the 26th of September in 1986

Decree of the Council of Ministers 29/1987. (VIII. 9.) on the promulgation of the convention on assistance in the case of a nuclear accident or radiological emergency, signed in Vienna on the 26th of September in 1986

Decree of the Council of Ministers 70/1987. (XII. 10.) on the promulgation of the agreement on regulation of mutually interesting questions relating to nuclear facilities concluded between the Government of the Hungarian People’s Republic and the Government of the Austrian Republic, signed in Vienna on the 29th of April in 1987

Decree of the Council of Ministers 34/1988. (V. 6.) on the promulgation of the agreement on co-operation in the peaceful use of nuclear energy between the Government of Hungarian People’s Republic and the Government of Canada signed on the 27th of November in 1987

Decree of the Council of Ministers 93/1989. (VIII. 22.) on the promulgation of the Reviewed Complementary Agreement on the technical assistance of the International Atomic Energy Agency to Hungary concluded between the Government of the Hungarian People’s Republic and the International Atomic Energy Agency, signed on the 12th of June in 1989

Decree of the Council of Ministers 24/1990. (II. 7.) on the promulgation of the international convention on civil liability for nuclear damage concluded in Vienna on the 21st of May in 1963

Governmental Decree 73/1991. (VI. 10.) on the promulgation of the agreement on regulation of mutually interesting questions relating to nuclear safety and radiation protection between the Government of the Republic of Hungary and the Government of the German Federal Republic, signed in Budapest on the 26th of September in 1990

Governmental Decree 108/1991. (VIII. 28.) on the promulgation of the agreement on mutual information and co-operation in the field of nuclear safety and radiation protection between the Government of the Republic of Hungary and the Government of the Czech and Slovak Federal Republic, signed in Vienna on the 20th of September in 1990

Governmental Decree 116/1992. (VII. 23.) on the promulgation of the agreement on co-operation in the field of the peaceful use of nuclear energy concluded between the Government of the Republic of Hungary and the Government of the United States of America, signed in Vienna on the 10th of June in 1991

Governmental Decree 130/1992. (IX. 3.) on the promulgation of the joint record of the application of the Vienna Convention on civil liability for nuclear damage, and the application of the Paris Convention on the civil liability in the field of nuclear energy, signed on the 20th of September in 1989

Governmental Decree 17/1996. (I. 31.) on the actions in connection with the found or confiscated radioactive or nuclear materials

Governmental Decree 124/1997. (VII. 18.) on radioactive materials as well as equipment generating ionising radiation, exempted from the scope of the Atomic Energy Act CXVI of 1996

Governmental Decree 185/1997. (X. 31.) on the promulgation of the agreement on the early notification in the case of radiological emergency concluded between the Government of the Republic of Hungary and the Government of the Republic of Slovenia, signed in Budapest on the 11th of July in 1995

Governmental Decree 213/1997. (XII. 1.) on the exclusion zone of the nuclear installation and the spent fuel storage facility

Governmental Decree 227/1997. (XII. 10.) on the type, conditions and sum of the liability insurance or other liability financial coverage concerning atomic damage

Governmental Decree 240/1997. (XII. 18.) on the establishment of the organisation designated for implementing disposal of radioactive waste and spent fuel, as well as decommissioning of nuclear installations, and on the financial source for performing tasks

Governmental Decree 248/1997. (XII. 20.) on the National Nuclear Emergency Response System

Governmental Decree 61/1998. (III. 31.) on the promulgation of the agreement on the early notification in the case of nuclear accidents concluded between the Government of the Republic of Hungary and the Government of Romania, signed in Bucharest on the 26th of May in 1997

Governmental Decree 188/1998. (XI. 18.) on the promulgation of the agreement on .) on the promulgation of the agreement on mutual assistance in the case of catastrophies and other serious events between the Government of the Republic of Hungary and the Government of the German Federal Republic, signed in Budapest on the 9th of June in 1997

Governmental Decree 108/1999. (VII. 7.) on the promulgation of the agreement on the early notification in the case of nuclear accidents, and on the mutual information and co-operation in the field of nuclear safety and radiation protection, concluded between the Government of the Republic of Hungary and the Government of Ukraine, signed in Budapest on the 12th of November in 1997

Governmental Decree 179/1999. (XII. 10.) on the execution of Act LXXIV of 1999 on Disaster Management

Governmental Decree 13/2000. (II. 11.) on the promulgation of the agreement on the early notification in the case of radiological accidents concluded between the Government of the Republic of Hungary and the Government of the Republic of Croatia, signed in Zagreb on the 11th of June in 1999

Governmental Decree 136/2002. (VI. 24.) on the promulgation of the agreement on the cooperation in nuclear field and handing over nuclear materials concluded between the Government of the Republic of Hungary and the Government of Australia, signed in Budapest on the 8th of August in 2001

Governmental Decree 275/2002. (XII. 21.) on the monitoring of radiation levels and radioactivity concentrations in Hungary

Government Decree 114/2003. (VII. 29.) on the scope of activities, authority and penalizing rights of the Hungarian Atomic Energy Authority, and on the activities of the Nuclear Energy Coordination Council

Governmental Decree 50/2004. (III. 23.) on the licensing of transfer of dual use items and technologies

Governmental Decree 155/2004. (V. 14.) on the supervision and control of the transboundary shipments of radioactive wastes

Governmental Decree 263/2004. (IX. 23.) on the regulation of international transfer of nuclear and nuclear dual use items

Governmental Decree 89/2005. (V. 5.) (with the modification of Government Decree 249/2005. XI. 18.) on the procedures of the Hungarian Atomic Energy Authority in nuclear safety regulatory matters

Annex No.1: Nuclear Safety Code Volume 1

Authority procedures applied to nuclear power plants

Annex No. 2: Nuclear Safety Code Volume 2

Quality assurance code of nuclear power plants

Annex No. 3: Nuclear Safety Code Volume 3

General requirements for the design of nuclear power plants

Annex No. 4: Nuclear Safety Code Volume 4

Operational safety requirements of nuclear power plants

Annex No. 5: Nuclear Safety Code Volume 5

The nuclear safety code of research reactors

Ministerial Decrees

Decree of the Minister of Transportation and Post 20/1979. (IX. 18.)
on the promulgation and inland application of Appendixes “A” and “B” of the European Agreement about the International Public Road Transportation of Dangerous Goods

Decree of the Minister of Transportation, Telecommunication and Water 13/1997. (IX. 3.)
on the promulgation of the regulation on the safe railway transportation of spent nuclear fuel

Decree of the Minister of Transportation, Telecommunication and Water 14/1997. (IX. 3.)
on the transportation, shipment and packaging of radioactive materials

Decree of the Minister of the Interior 47/1997. (VIII. 26.) on the tasks of the police in connection with the application of atomic energy

Decree of the Minister of Industry, Trade and Tourism 62/1997. (IX. 26.)
on the geological and mining requirements for the siting and planning of nuclear facilities and radioactive waste disposal facilities (This text is an unofficial translation. It's up to the reader to check if any newer version has been put in force)

Joint Decree of the Minister of Industry, Trade and Tourism and the Minister of Education 49/1998. (VI. 25.) on the professional training and further education of those employed at the nuclear power plant, or at the research reactor, or at the training reactor, and on those who are entitled to pursue activities connected with the application of nuclear energy

Decree of the Minister of Economy 27/1999. (IV. 4.) on the charges of the subcontractors connected to the final disposal of radioactive wastes

Decree of the Minister of Health 16/2000. (VI. 8.) on the execution of certain provisions of the Act CXVI of 1996 on Atomic Energy associated with radiation protection

Decree of the Minister of Environment Protection 15/2001. (VI. 6.) on the radioactive releases into the air and into the water in connection with the application of atomic energy, and on their control  

Decree of the Minister of Health 31/2001. (X. 3.) on the protection of the health of individuals exposed to ionising radiation during medical services

Decree of the Minister of Health 30/2001. (X. 3.) on the operational radiation protection of the outside workers

Decree of the Minister of Health, Social and Family Affairs 47/2003.(VIII.8.)
on some aspects of the interim storage and final disposal of radioactive waste and on the radiological aspects of radioactive materials arising from industrial activities and naturally occurring radioactive materials

Decree of the Minister of Interior 33/2004 (VI. 28.) on the registration of radioactive materials

Decree of the Minister of Justice 14/2005 (VII. 25.) on the operation and administration of the Central Nuclear Financial Fund

Decree of the Minister of Justice and Law Enforcement 7/2007. (III. 6.)
on the rules of accountancy for and control of nuclear material

3.2.2. The mechanisms in place for financing decommissioning and waste disposal

As of 1 January 1998, the Atomic Energy Act established the Central Nuclear Financial Fund based on the payments of parties using atomic energy. The goal of this Fund is to finance the disposal of radioactive waste, the interim storage and final disposal of spent fuel, and to finance the decommissioning (dismantling) of nuclear facilities. Pursuant to the Act on Atomic Energy, a body designated by the Government shall be responsible for performing these activities, financed from the Central Nuclear Financial Fund. Based on the authorisation of the Government, HAEA has established the Public Agency for Radioactive Waste Management (PURAM) for this purpose. PURAM is also responsible for the operation of the Radioactive Waste Treatment and Disposal Facility in Püspökszilágy and the Interim Spent Fuel Storage Facility (ISFS) located near to Paks Nuclear Power Plant.

The Minister supervising the Hungarian Atomic Energy Authority has jurisdiction over the Central Nuclear Financial Fund (hereinafter Fund) and the Hungarian Atomic Energy Authority itself is responsible for its administration. The Hungarian Atomic Energy Authority is supervised on behalf of the Government by the Minister of Transport, Telecommunication and Energy.

The Fund is a separate state fund pursuant to Act XXXVIII of 1992 on Public Finance, exclusively earmarked for financing the construction and operation of disposal facilities for the final disposal of radioactive waste, as well as for the interim storage and final disposal of spent fuel, and the decommissioning of nuclear facilities.

A long-term plan (lasting up to the decommissioning of the various nuclear facilities), a medium-term plan (for five years), and an annual work schedule on the use of the Fund are being prepared by the Public Agency for Radioactive Waste Management.  The long- and medium-term plans are to be reviewed annually and revised as required.

The long- and medium-term plans and the annual work schedule are to be approved by the Minister supervising the Hungarian Atomic Energy Authority.

The payments into the Fund are defined in accordance with these plans.  The annual payments into the Fund by the Paks Nuclear Power Plant are proposed by the Minister supervising the Hungarian Atomic Energy Authority, in the course of the preparation of the Act on the Central Budget. Payments are based upon submittals prepared by the Public Agency for Radioactive Waste Management and approved by the Hungarian Atomic Energy Authority and by the Hungarian Energy Office. Payments by the Paks Nuclear Power Plant are taken into account when the price of electric energy is being determined. The budget of the Fund is approved by the Parliament as part of the Act on the Central Budget.

The institutes disposing radioactive waste in the Radioactive Waste Treatment and Disposal Facility are also liable to contribute to the Fund in accordance with the official price list contained in a ministerial decree.

For nuclear installations financed from the central budget (research reactor and training reactor), the sources required to cover the payment into the Fund are provided by the central budget, when they arise. 

The rate of payments into the Fund shall be specified in such a way as to provide appropriate sources for all costs of radioactive waste and spent fuel management and the decommissioning of nuclear facilities. These sources also provide coverage for public control and information activities as well as for the operational expenses of the existing repository.

In order to ensure that the Fund maintains its value, the Government contributes to the Fund with a sum that is calculated on the average assets of the Fund in the previous year using the average base interest rate of the central bank in the previous year. This practice was interrupted for 2001-2002, but it was restored again as of 2003.

For additional information on the Hungarian radioactive waste management programme please see the website of the Hungarian Atomic Energy Authority (www.haea.gov.hu).

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

4.1.  Energy Policy

In order to foster the long term safety, competitiveness and sustainability of energy supply, the Hungarian Parliament has taken decision on the Hungarian energy policy for  the period of 2008-2020. Among others, in this policy the Hungarian Parliament invites the Government to initiate the preparatory works for a possible decision on new nuclear energy capacities. Following the technical, environmental and societal foundations propositions shall be submitted to the Parliament in due time on the necessity and conditions of the investment and on the type and siting of a nuclear power plant. Furthermore, the Government shall take care of proper execution of the programs aimed at final disposal of nuclear wastes.

The Act on Atomic Energy has also been revised and its modification was proposed. The proposed amendments are aimed to reflect the change in the regulatory philosophy. Furthermore, they reflect the changes in the financing of neighbouring  communities of a nuclear facility from the Central Nuclear Fund covering their communication and development activities. The amended version has been submitted for intergovernmental harmonization.

According to the Act on Atomic Energy the Nuclear Safety Code – setting the legal framework of the design, operation and decommissioning of nuclear installations – shall be revised with a frequency not lower than once in every 5years. The actual version of the Code entered into force in 2005. The revision of this version has been started in 2006. The main driving force behind the revision originated from three sources, inclusion of regulations stemming from the WENRA reference levels on one hand, the change of the regulatory attitude intending to put more emphasis on inspection and less on approval and prescriptions on the other hand, and also formulation of the IAEA basic principles in a legally binding way. The new Code consists of nine volumes. Revision has been completed and the Code, along with the draft of a Governmental Decree to promulgate it, has been submitted for intergovernmental harmonization. The Governmental Decree includes the Basic Safety Principles formulated in the Safety Fundamentals by IAEA.

The Periodic Safety Review (PSR) of the Paks nuclear power plant units is performed once in every ten years of operation. Previous reviews were held for two units at a time. The actual review has been performed for all four units of the Paks NPP. The scope of the review is defined in the Nuclear Safety Code and it is conform to the IAEA`s recommendations. Besides the nuclear safety authority, a number of co-authorities take part in the process, including the environmental, health, disaster management and mining authorities. The PSR was submitted in March 2008 and HAEA has nine month for the evaluation. 90% of the HAEA NSD staff participated in the assessment in 14 groups organized according to the main chapters of the Report. Preliminary results suggest that the Report shall be approved with the requirement of more than 100 safety enhancing measures in three importance categories. Temporary limitation of the operational licenses of the units is an option to consider.

The units of the Paks NPP have been put into operation between 1982 and 1987 with a designed

lifetime of 30 years. The management of the power plant has decided on the extension of the units’ lifetime by 20 more years in 2001. The lifetime extension was almost unanimously supported by the Hungarian Parliament in December 2005. Environmental impact analysis was prepared and submitted for public debate in 2006. Public hearings both in Hungary and in the neighbouring countries (Austria, Romania, and Croatia) were organized. Environmental approval was issued, and then challenged by environmentalist organizations. Final court decision reinforced the approval in November 2005. The nuclear safety regulatory approval process requires a Program to be submitted by the NPP four years before the expiry of the operational license, at the  latest. The Program needs to demonstrate either the suitability of the systems and system components for extended operation or, the process of safely ensuring it. The Program has just been submitted to HAEA. For the evaluation of the Program, HAEA has established a project involving about 75% of the inspectors in five topical review groups. A detailed overview plan has been prepared. The reviewing process is planned to take about six months and ends up with a regulatory resolution including the conditions and requirements imposed by the regulator on the Program.

4.2.  Privatisation and deregulation

4.3.  Role of the government in the nuclear R&D

4.4.  Nuclear Energy and Climate Change

4.5.  Safety and waste management issues

The operation licence for the surface part of the National Radioactive Storage Facility (NRSF) in Bátaapáti was issued on 25 September 2008 and the repository started to accept wastes for predisposal storage from the Paks NPP in December 2008. According to the plans the NRSF will be ready for final disposal of radioactive wastes by 2010.

Though no formal decision on the back-end of the fuel cycle has been made, yet, it is obvious that in the foreseeable future a strategy for the back-end of the fuel cycle should be elaborated. In the course of the elaboration of the strategy it is worthwhile to examine various possibilities, including the shipment of spent fuel abroad. In principle, this latter is a possible option due to the above mentioned Agreement and Additional Protocol, as well as a protocol on conditions concerning the reshipment to the Russian Federation of Russian-made spent fuel assemblies signed on 29 April 2004.

From the point of view of RWM the medium and long term plans of the Central Nuclear Financial Fund address the issue. The end point is the construction of a future deep geological repository suitable for accommodating both HLW and SF. In order to calculate the future costs of radioactive waste and spent fuel management, as well as to assure the necessary funding some assumptions need to be made. As a reference scenario the postulation of direct disposal of the spent fuel assemblies in Hungary was accepted.

According to the HLW disposal programme of the Public Agency for Radioactive Waste Management the start of operation of a deep geological HLW/SF repository is planned by 2047. However, reconsideration will be needed in the near future mainly due to the upcoming life-time extension of Paks NPP and some other delays in the programme.

4.6.  Other issues

Including future developments

REFERENCES

Appendix 1

INTERNATIONAL (MULTILATERAL AND BILATERAL) AGREEMENTS

Appendix 2

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES

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1. The statistical tables in this profile have been updated with data as of the end of 2007 from IAEA databases, namely the Power Reactor Information System (PRIS) and Energy and Economic Data Bank (EEDB), and the World Bank's World Development Indicators (WDI).