Hungary is a landlocked central European country. Its history goes back to more than a thousand years in Europe. Once part of the Ottoman and Habsburg empires, it became a partner in the Austro-Hungarian empire in the mid-19th century. After a period of turmoil following World War I, an independent kingdom of Hungary was established. The redrawing of European borders that took place after World War I left about five million ethnic Hungarians living in the neighboring countries. Their status remains a sensitive issue. Following World War II, the country found itself under communist rule. An uprising against Soviet domination in 1956 was crushed by Red Army forces but Hungary did later become the first Eastern European country to gain some economic freedom. It embraced aspects of the free market while still under communist rule and in 1968 the authorities allowed limited decentralization of the economy. Hungary played an important part in accelerating the collapse of communism across Eastern Europe when in 1989 it opened its border with Austria, allowing thousands of East Germans to escape to the West. Just a few months later the Berlin Wall was history. Hungary's post-communist economic transition was achieved relatively smoothly. Within four years of the collapse of communism nearly half of the country's economic enterprises had been transferred to the private sector, and by 1998 Hungary was attracting nearly half of all foreign direct investment in its region. Hungary joined the European Union on 1 May 2004. It became a member of NATO on 12 March 1999. The global economic crisis hit Hungary in 2008. The high level of both private and state loans left the country particularly vulnerable to the credit crunch and in October 2008 the government was forced to appeal to international financial institutions such as the International Monetary Fund and the World Bank for massive loans in a bid to stave off economic collapse. After reaching the bottom in 2009, the global economy started to recover again in 2010 and it had an effect on the Hungarian economy as well. After the election in 2010 the Hungarian government has taken many steps to stabilize the economy. The global economic slowdown and heightened financial market stress have pushed an already fragile and highly indebted economy towards recession. But controversial domestic policies have also contributed to uncertainty hurting consumer, business and market confidence.

Politics of Hungary takes place in a framework of a parliamentary representative democratic republic, whereby the Prime Minister of Hungary is the head of government. Executive power is exercised by the government. Legislative power is vested in both the government and parliament. The party system is dominated by the Hungarian Socialist Party and the conservative Hungarian Civic Union or FIDESZ. The Judiciary is independent of the executive and the legislature. Hungary is an independent, democratic and constitutional state. Since the constitutional amendment of 23 October, 1989, Hungary is a parliamentary republic. Legislative power is exercised by the unicameral National Assembly that consists of 386 members. Members of the National Assembly are elected for four years. In April 2010, a general election was held in Hungary. The unified party of the Hungarian Civic Union (FIDESZ) and the Christian Democratic People's Party (KDNP) won the election with great majority and formed the new government. A new governmental structure was developed with ministries responsible for several fields.

Hungary has borders with Austria, the Slovak Republic, 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), the largest in central Europe. Hungary covers an area of 93,032 km².

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).

TABLE 1. POPULATION INFORMATION

* Latest available data

** Census data

Source: Hungarian Statistical Office

According to statistical data 90,300 children were born in 2012, 2.6 % more than in the previous year. The number of deceases was 129,500, by 0.5 % more than in 2011. The natural decrease of the population slightly increased to 39,200 persons per year. Due to the positive estimated balance of international migration, the population decreased actually to a smaller extent and the population size of the country was estimated to be 9,932,000 at the end of the year.

TABLE 2. GROSS DOMESTIC PRODUCT (GDP)

* PPP: Purchasing Power Parity

** Latest available data

Source: Hungarian Statistical Office

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. Hungary became a member of the OECD in 1996 and the European Union in 2004. greatly influencing its economic development. Simultaneously, with somewhat moderating Western European boom, the Hungarian economy was characterized by minimally decelerating growth that still exceeded 4% in 2005. From 2006, the rate of the growth of GDP started to decline and in 2007 it was only 1.3%. The global economic crisis hit Hungary in 2008. The mitigation of the external slump is also perceivable in Hungary`s economic performance. However, the real economic impacts of the crisis seem to be longer, which is largely due to the fact that the economic crisis hit Hungary in the period of internal balance improvement, and the slowdown of the slump in the Hungarian economy, largely depending on international booms, occurred with some delay. Parallel with the global economic recession the performance of the Hungarian economy fell, too. The gross domestic product of Hungary in 2011 - along with a decreasing growth in the year - was 1.7% higher than a year earlier, which has been the highest increase since 2006. Taking into account all these, the level of economic performance was lower than in 2008, before the crisis.

The economic environment became less favorable in the EU which is reflected by the external trade performance in Hungary; external trade in goods and services remains the only engine of growth on the expenditure side for the domestic economy. Exports and imports rose by 8.4% and 6.3% respectively in 2011 compared to the previous year, the balance of net exports was 7.4% of GDP. Actual final consumption, calculated as the total of the actual consumption of households and government was essentially unchanged in 2011. The total performance of goods producing branches increased by 6.3%, while that of services decreased by 0.6%. The performance of agriculture increased continuously at an even rate all over the year. Looking at 2011 as a whole the expansion reached 27% compared to the low base as a consequence of the high rise of the value added by crop production. The industrial production reached a volume increase of 5.7%, within which was manufacturing at 7%, contributing significantly to the expansion of GDP. The consumer price rise was 3.9% over the year. The number and rate of unemployed persons were about half a million persons and 11.1%, respectively. At the same time the employment rate rose by 0.7% to 56 % in 2011.

The new government elected in 2010 aims at decreasing the exceptionally high debt of the country (about 80% of the GDP) and increasing the growth rate of the economy. One of the first steps in improving competitiveness of the country was a substantial decrease in the tax rate. The government wants to achieve its goals by decreasing the bureaucracy and the expenditure of the government. Several changes have been implemented in many sectors, including education, health care and social support system, the results of which are expected in the near future.

TABLE 3. ESTIMATED AVAILABLE ENERGY SOURCES

* Solid, Liquid: Million tons; Gas: Billion m3; Uranium: Metric tons; Hydro, Renewable: EJ

Source: Hungarian Office for Mining and Geology

Hungary has estimated coal reserves of more than 8.5 billion tonnes. The bulk of this is lignite, with 4.3 billion tonnes, followed by 2.2 billion tonnes of brown coal and 1.9 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 then it has rapidly declined. Domestic production has declined for the last two decades. Hungary produced about 9 Mt of coal in 2010 and imported 2.06 Mt. The imports come mostly from the Czech Republic, Poland and Russia. Hungary`s oil and gas reserves are relatively small. Hungary`s uranium resources are limited to those of the Mecsek deposit. Between 1956 and 1997, uranium was mined at the underground Mecsek mine by the state owned (until 1992) Mecsek Ore Mining Company, producing a total of just over 21,000 tU. Until an ore processing plant became operational at the site in 1963 all ore was shipped to the Sillimae metallurgy plant in Estonia. After 1963, uranium concentrates produced at the processing plant were shipped to the Soviet Union. The mine was closed in 1997 due to poor market conditions. Remediation activities began the following year and were completed in 2008. On-going treatment of contaminated water from the mine and tailings ponds results in the collection of about 1 to 3 tU (tonnes of uranium metal) per year. With generally increasing prices since 2003 on prospects of rising demand, uranium exploration and mine development activities were restarted in many countries, including Hungary. In 2009, Australian-based Wildhorse Energy signed a cooperation agreement with Mecsek-Öko and MECSEKÉRC, Hungarian state-owned companies that are currently responsible for uranium mining, exploration and rehabilitation activities. The intent of this agreement is to work toward the resumption of uranium mining in the Mecsek Hills. Wildhorse Energy is continuing exploration activities with the aim of defining a sufficiently large resource base to support commercial mining operations. A government resolution published in June 2012 in the official gazette Magyar Közlöny gives the task to the the national development minister to examine that state-owned Mecsek-Öko, Mecsekérc, the state-owned Hungarian electricity company MVM and - depending on the stand of MVM - the Hungarian nuclear power plant MVM Paksi Atomeromu Zrt. could participate in a joint venture to be established by Australia's Wildhorse Energy.

TABLE 4. ENERGY STATISTICS (Exajoule)

* Latest available data

** Energy consumption = Primary energy production + Net import (Import - Export) of secondary energy.

*** Solid fuels include coal, lignite

Source: Hungarian Energetics and Public Utility Regulatory Authority, Department of Energy Statistics

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. An act on electricity (Act LXXXVI of 2007) has been adopted by the Hungarian Parliament. The aim of the 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 became fully liberalized. Nevertheless, 2008 was considered a transition period, the players of the market have to learn the new rules. Hungarian electricity consumers are paying for substantial subsidies to the renewables and combined heat and power (CHP) sectors through levies on their tariffs.

In February 2008, the National Climate Change Strategy for the period of 2008-2025 was adopted by the Hungarian Parliament. The strategy emphasizes 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 Hungarian energy policy aims at maintaining a balance between security of supply, cost-effectiveness, energy efficiency and protection of the environment. 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 every two years and in case of need it should propose the review of the concept.

The Hungarian Energy Strategy was adopted by the Parliament in October 2011. The Energy Strategy gives a roadmap until 2030 and it has a vision until 2050. The main aim of the strategy is to ensure the optimal balance of security of supply, competitiveness and sustainability. The energy import should be decreased by diversification of resources and/or origins. The government considers energy production as a way out of the economic crisis. The main elements of the strategy include the increased use of renewables, maintenance of nuclear capacity (life time extension and consideration of new capacity building), development of regional energy infrastructure, development of a new organizational system as well as the increased effectiveness and efficiency in energy use. The National Energy Strategy can be found on the website of the Ministry of National Development (www.nfm.gov.hu). For more information see Section 2.3.1.

The Act on Atomic Energy (Act Nr. CXVI of 1996) was modified to a great extent in 2011. The most important elements of the modification concerned the safety principles and the tasks and activity of the Hungarian Atomic Energy Authority. The nuclear safety codes have also been modified, with the WENRA reference levels built in. The set of requirements was completed by two new volumes in order to define requirements for all parts of the lifetime of nuclear facilities. The new set of requirements came into force on 1 November 2011. The modified Act and the new safety codes can be found on the HAEA`s website (www.haea.gov.hu).

After the severe accident at the Fukushima Dai-ichi Nuclear Power Plant (NPP), all European countries operating NPPs had performed the Targeted Safety Re-assessment (TSR) - the so-called stress test - for the call of the European Council. The TSR of Paks NPP focused on topics specified by the ENSREG (the issues corresponding to earthquake and/or flooding and other external natural hazard factors; to the loss of electric power supply and loss of ultimate heat sink or combination of those; and to severe accident management. In relation to the hazard factors it was assessed whether the design basis of the plant was duly determined and whether there are sufficient reserves beyond design base before severe damage occurred). Based on the final report of the Paks NPP submitted to the HAEA for regulatory review the HAEA agreed with the proposed tasks in the report to be carried out in order to further improve the plant safety and identified a few additional options. Along with the detailed coverage of the topics specified by ENSREG, HAEA also established that the national legal requirements for the safety of NPPs are in line with the international standards and best practices. HAEA submitted the National Report about the results of the review to the European Commission by the end of 2011 and published it on its website (www.haea.gov.hu). Based on the results of the regulatory review of the TSR, HAEA concluded that the design basis of Paks NPP is adequate, and complies with the legal requirements and international practice. The safety systems and safety functions satisfy requirements of the design base. After the last Periodic Safety Review of Paks NPP, specific safety enhancement measures had been implemented, mainly in order to improve the plant’s beyond design basis capabilities. These measures are fully in line with expectations of the Targeted Safety Re-assessment as well. It can be concluded that Paks NPP is safe and has not arisen any deficiency, which may question the adequacy of its design basis and may require any urgent regulatory intervention. The measures initiated by the last Periodic Safety Review provide robust capabilities for the plant for successful management of severe situations, as well. In addition to the positive findings, the TSR identified a number of options and measures to enhance plant safety even further. The HAEA ordered the operator of the plant to elaborate the detailed program by the end of the first half of 2012 for realizing these options.

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 privatization of the electricity sector began and took place in several phases. At present, the majority of power stations and 100% of the electricity suppliers (the grid and the distributors) are privately owned.

In Hungary, the electricity policy is an integrated part of the energy policy. The most important document which based the Hungarian electricity market liberalization 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 a member-state of the European Union in 2004 and which necessitated further harmonizing the Hungarian legal framework to the EU law. An important step of the harmonization was the adoption of a new Act on Electricity LXXXVI (2007) which had been passed by the Parliament in 2007. The harmonization and the electricity policy objectives were 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 National Development. 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.

Delayed by half a year, then set in EU Directive, the market was fully opened on 1 January 2008. To supply the vulnerable consumers, universal service supplier licenses were issued in addition to the license types in use earlier. In parallel with the abolition of public utility supply, the license for public utility wholesale was also abolished. The European Committee investigated the compatibility of long term contracts with the competitive market, which contracts aimed to prepare the privatization in the single buyer model. In decision No. C-41/2005, published on 4 June 2008, the Committee stated that the contracts implied prohibited state subsidy and ordered to terminate them and to repay the prohibited state subsidy. Thereby, the system of long term contracts ceased at the end of 2008. Due to the lack of generation sources in the region and the high oil prices, the full market opening resulted in a non-expected price rise on the domestic market. The Electricity Act was again amended in June 2008 to ensure an “intervention possibility” in determining the prices. Based thereon and after identifying the participants with considerable market power, the Hungarian Energy Office ordered MVM Trade ZRt. and GTER ZRt. to apply electricity price caps. The universal service category includes the household consumers and (former public utility) low voltage consumers with nominal current not greater than 3×63 A. In this circle, authority (regulated) pricing continues to exist. The competitive market consumers have to purchase the power from the traders and have to sign a network use contract with the network license holder competent in the relevant area. Authority pricing now concerns only the system use charges, the prices of electricity traders are set by the competitive market. However, the network access is ensured for each market participant. The relevant laws are available on the website of the Hungarian Energy Office (www.mekh.hu)

The responsibility of the reliable, efficient and environment-friendly energy supply for Hungary belongs to the Ministry of National Development (www.nfm.gov.hu), established in 2010. Directly under the top political level the energy issues handled by the Minister of State for Climate and Energy Affairs. Development, competitiveness, security and sustainability are the key words directing the activity of the ministry.

The Hungarian Energy and Public Utility Regulatory Authority (MEKH) (www.mekh.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. Pursuant to Section XIX of the Electricity Act, the Hungarian Energy Office is an independent governmental office with separate and independent financial management. The MEH is self-financing. Licensees are charged a supervisory and administration fee for their activities. Following a proposal by the Ministry of National Development, the prime minister appoints and releases the MEH president. MEH resolutions can only be challenged and amended in court. The goal of MEH is to ensure the market operation, to promote the competition and to effectuate the efficiency requirements and principle of least cost, to sustain and improve security of supply and to protect the interests of users and license holders as well as to regulate the prices in order to have a fair competition.

Ministry of Rural Development, established in 2010, is responsible for environmental issues. The task of the State Secretariat for Environmental Affairs is promotion of sustainable development, the preservation of air, water and soil quality and the protection of natural assets. In the area of waste management, the aim of the Office is to reduce pollution and to aid the recycling and up-to-date treatment of the volume of waste produced.

According to the legislation in force, the approval of the Government or the Parliament is needed for the establishment of power plants above 200 MW capacity. Between 200 and 600 MW capacity, it is the right of the Government to give the approval, while above 600 MW capacity, the Parliament has to approve it. Any nuclear installation, including power and research reactors, should be approved by the Parliament independently of their capacity.

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

Figure 1 shows the simplified model of the Hungarian electricity industry.

FIG 1. Hungarian electricity industry

The MVM 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. The Paks NPP primarily has a crucial share in the domestic power generation and therefore, ensures a favorable price for electric energy. The MVM Group has no direct access to the consumers. In 2005 the still indirectly (through MVM) state owned independent MAVIR Rt. merged with MVM Rt. As a consequence of a Governmental Decree (246/2005(XI.10)) about the execution of the former Electricity Act (CX. 2001), the activity and responsibility of MAVIR has become much wider. Until the end of 2005, MAVIR ZRt. had the license of System Operation, now from the beginning of 2006 MAVIR ZRt. has received a license for Transmission as well.

FIG 2. The structure of the MVM Group

Companies operating power plants of 50 MW or higher capacity:

There are 200 companies operating 314 (small) power plants under 50 MW capacity.

Transmission system operation

Electricity distribution

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

The installed capacity of domestic power plants on 31 December 2012 was 10,094 MW_e. Compared to the value of 31 December 2011 (10,109 MW) it decreased by 15 MW, due to the commissioning of new units during the year and decommissioning of units which were in "constant shut down". The peak load of the Hungarian electricity system was 6,463 MW in 2012 which means a decrease of 29 MW compared to 2011 (6,492 MW). Though the increase in energy efficiency may help to reduce the rate of increase of primer energy consumption, it is still probable that the electricity demand will increase after overcoming the world crisis. The capacity expansion needed until 2030 will be between 600 and 2,600 MW. Taking into account the necessary closure of old fossil power plants new capacity between 6,000 and 8,000 MW is needed until 2030.

The capacity structure of the Hungarian electricity system is presently well balanced, with about 26% gas, 46 % nuclear, 20% coal, and an increasing ratio of renewables. The electricity production from renewable energy sources is growing in accordance with the EU directive on green electricity. Though the Hungarian target was 8.6% for 2012, nearly 7 % of the electricity came from renewable sources (wind, hydro and biomass).

The Hungarian energy supply is about 55-60% 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 NPP 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.

TABLE 5. ELECTRICITY PRODUCTION, CONSUMPTION AND CAPACITY

(1) Electricity transmission losses are not deducted.

* Latest available data

Source: Hungarian Power Companies Ltd.

TABLE 6. ENERGY RELATED RATIOS

(1) Net import / Total energy consumption.

* Latest available data

Source: Hungarian Statistical Office

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 a 10 MW_th power.

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

In 1966, it was decided to construct a NPP 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 NPP. 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

an uprated 470 MW_e, with an unchanged thermal capacity at all four units. An upgrade of the primary side was decided to increase the nominal power by 8% to 1485 MW_th, resulting in about 500 MW_e generated power per unit. The power uprate was completed in 2009.

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 is a priority.

Licensees:

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

Public Limited Company for Radioactive Waste Management (www.rhk.hu). It operates the Interim Spent Fuel Storage Facility at Paks and the Radioactive Waste Treatment and Disposal Facility (RWTDF) at Püspökszilágyi that manages low and intermediate level waste generated by medical, industrial and research applications. It also operates the National Radioactive Waste Repository in Bátaapáti dealing with low and intermediate level waste generated by the Paks NPP.

HAS Centre for Energy Research (www.energia.mta.hu) It operates the Budapest Research Reactor.

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

Governmental organizations with responsibility in nuclear field:

The Hungarian Atomic Energy Authority (HAEA) (www.haea.gov.hu) is a public administration body acting in the field of peaceful applications of atomic energy with a specified scope of tasks and authority, being independent from both organizational and financial points of view. 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 HAEA. In addition, the HAEA is required to harmonize 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. From 2010, the Minister of National Development is responsible for the supervision of the HAEA`s activity. The Director General of the HAEA is appointed and relieved by the Prime Minister. The HAEA resolutions can only be challenged and amended in court.

The Ministry of National Resources 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.

Within the Ministry of Rural Development the State Secretariat for Environmental Affairs 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 HAS Centre for Energy Research was established in January 2012 on the basis of two former independent institutions, the Institute of Isotopes and the KFKI Atomic Energy Research Institute. The Centre is part of the a research network of the Hungarian Academy of Sciences (HAS). The website of the new organization can be found as www.energia.mta.hu.

The center 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. It 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.energia.mta.hu)

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), sterilization, detoxification, etc. (homepage: www.osski.hu)

- The Nuclear Safety Research Institute (NUBIKI, Budapest) works in the field of safety analysis of NPPs, PSA and severe accidents, noise analysis, etc. (homepage: www.nubiki.hu)

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

- The Power Engineering and Contractor Co. (ETV-EROTERV 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 Experimental Physics of the University of Debrecen is operating the Laboratory for Nuclear Safety and Techniques, NUBITEL (https://regiszter.nekifut.hu/ki/nubitel-debrecen) (http://fizika.ttk.unideb.hu/kisfiz/nubitel/ and the Quantechnologies Research and Development Co. (http://www.quantec.hu/). The following main fields represent their areas of operation: in-situ alpha-, beta-, gamma-activity measurements in NPPs (primary circuit, refueling-, storage- and technical ponds); exploration and handling of nuclear wastes; detection of radioactivity in the environment (NORM/TENORM), under-water gamma-spectrometry; data evaluation and trend analysis; education and training in applied nuclear physics.

The Institute of Radiochemistry and Radioecology at University of Pannonia has a wide range of topics in research and education in two main fields: radiochemistry and nuclear technology as well as radioecology and radiation protection (http://radio.mk.uni-pannon.hu/)

Taking into account the energy situation in Hungary the operation of the only NPP is crucial. The design lifetime of the VVER-440/213 Units at Paks is 30 years; the operational license is formally limited in time by the planned operational lifetime. As 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.

TABLE 7. STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

* UCF (Unit Capability Factor) for the latest available year (only applicable to reactors in operation).

** Latest available data

*** 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.

+ Date, when first major placing of concrete, usually for the base mat of the reactor building is done.

++ Date of the first connection to the grid

Source: PRIS database (www.iaea.org/pris).

The Paks NPP is about 115 km south of Budapest. The Paks NPP generated 15,793 GWh of electric energy in 2012, which represents 45.89 % of the gross domestic electricity production of Hungary. This amount was generated by four Units as follows: Unit 1: 3,988.2 GWh; Unit 2: 3,770.9 GWh; Unit 3: 4,035.4 GWh; Unit 4: 3,998.5 GWh. As far as the amount of the produced energy is concerned, 2012 is considered an outstanding year, because the largest production result was achieved in the history of the power plant. The total of all electricity that has been generated by Paks NPP since the date of the first connection of Unit 1 to the grid was higher than 382.6 TWh as of the end of 2012.

FIG 3. Map of Hungary indicating the location of Paks NPP

The Paks NPP consists of four VVER-440/213 type reactor units, originally designed to produce 1375 MW_th and 440 MW_e each. Earlier upgrades of the secondary circuit and turbine increased the electrical output to about 470 MW_e in each unit, with no change to thermal capacity. Recently an upgrade of the primary side has been completed that increased the nominal power by 8% to 1485 MWth, resulting in about 500 MW_e of power generation by each unit. The power increase is primarily reached by refined primary pressure regulation, a core control system upgrade and the use of a new type of fuel assembly. Additional modifications have been performed in certain technological components, e.g. replacing some of the MCP impellers and decreasing the initiating pressure value of the hydro-accumulators. By the end of 2009, the uprating process was completed successfully on all four units and 2010 was the first year they operated at the increased power level.

In order to enhance its economic and operational efficiency and to improve its position in the market, the Paks NPP has begun an Economical Efficiency Enhancement Program (EEP), the principal elements of which are enhancing human resources efficiency, power uprating, optimizing maintenance and initiating service life extension. The objectives of EEP for 2011 were reached as planned.

At the end of 2008 Paks NPP submitted a Lifetime-extension program to the Hungarian Atomic Energy Authority to justify the establishment of the operating conditions and safe operation beyond the designed lifetime. HAEA evaluated the program and ordered the licensee to implement the program with certain conditions. The technical preparation activities covered the determination of the aging effects and aging processes requiring treatment, the status of the systems, structures and components, the evaluation of the existing aging management programs, and if necessary, the amendment or development of new programs. HAEA regularly reviews and evaluates the progress reports of the Lifetime-extension program. In December 2011 in compliance with the legal requirements, Paks NPP submitted the beyond designed lifetime license application of Unit 1, one year before the expiration of its licensed operating time. By the end of 2012 HAEA evaluated the license application and the additional information and made a decision on the extension. On the base of the review of the approximately 30,000 page long licence application, the HAEA stated, that nuclear safety requirements are fulfilled and the safe operation is ensured. The HAEA provided the operational license of Unit 1 for the next 20 years.

The construction of new reactors at the Paks site has been proposed in order to meet future electricity demand. Under Hungary's Nuclear Energy Act, the government needs to obtain a preliminary conceptual approval from the Parliament before taking specific steps leading to the construction of new nuclear capacity. On 30 March 2009 members of the Hungarian Parliament approved a decision in principle - with 330 yes, 6 no and 10 abstention votes - that permits preparations for new unit(s) at the Paks NPP. According to the explanation to the resolution the preparations for the investment take at least five years, while the commissioning planning and implementation would require a minimum of six years, thus the construction of a new nuclear unit would need 11 years at least. As the explanation states, more than 70% of Hungarians support nuclear power generation in the country. It is anticipated that the first planned unit will be commissioned between 2025 and 2030. After the go ahead by the Hungarian Parliament, the preparatory work related to the extension of Paks NPP has accelerated.

As part of the preparation for new units the management of the MVM Group founded a project in 2007. The aim of the project was to make the necessary preparations on which the Parliament decision in principle could be based. The project tasks included feasibility studies, preliminary environmental assessment, the evaluation of storage possibilities for spent nuclear fuel elements and radioactive waste, as well as preparation for communication. The current decision of Parliament in March 2009 is not a direct agreement that new nuclear units will be built. After the Parliament decision the Paks NPP with its owner, the MVM Zrt. established the Lévai Project to carry out tasks to commence the extension of the Paks NPP in accordance with the resolution. The preparation for the construction of new units is taking place within this project. The activities include preparations for obtaining environmental and site license. Within the project engineering, analysis, legal, communication and financial tasks were implemented in 2011. A survey was initiated to determine the possible suppliers for the construction of the new unit and the demand for the necessary man-power. An interactive mobile exhibition launched in the end of 2009 assists in public information on the lifetime extension and the new units. It has had more than 60,000 visitors in 150 settlements since October 2009. The support of nuclear energy by the Hungarian public remained outstanding. According to the latest poll conducted in 2012 75 % of the population agrees with the operation of Paks NPP and only 22 % is against it. In 2012 the Board of the MVM Zrt. took a decision to establish a company to continue the tasks of the Lévai project. The company is called MVM Paks II. Zrt. The tasks of the company include the examination of all essential aspects of the construction to take a responsible decision on the construction of the new units at the Paks NPP.

The government decided to make the extension process faster and three governmental decrees were adopted in 2012. The government determined the tasks and responsibilities (1194/2012 (VI. 18) Gov. decree) for the preparation of the construction of the new units at the Paks NPP and it established a Nuclear Energy Governmental Committee to deal with the strategic issues (1195/2012 (VI. 18) Gov. decree). Moreover it declared the extension as a high priority project (1196/2012 (VI. 18) Gov. decree).

The HAEA has started the preparations for the licensing of the new units by reviewing four important areas including regulatory requirements, licensing framework, technological and safety characteristics of possible new units and international framework. The most important goal of the preparation of HAEA is to adopt the strictest requirements set by the latest results of science and technology and at the same time to avoid any unnecessary complication of the licensing process. As part of the review process the representatives of the nuclear industry, the HAEA and the Hungarian National Standard Committee agreed on the promulgation of a series of international standards specific to NPPs to cover the necessary technical fields on which Hungarian National Standards were not available. The first series of standards covering the principles of instrumentation, control room and emergency control room design, safety parameter displaying, detection of leakages and loose parts in primary circuit, neutron flux monitoring, radiation monitoring and alarming were published as Hungarian National Standards in January 2011.

According to the Act on Atomic Energy, the safety requirements of use of nuclear energy must be regularly reviewed and modernized taking into account the achievements of sciences and international experience. Governmental decree 89/2005.(V. 5.) describes that the Nuclear Safety Code must be reviewed and updated if necessary at least every five years. As a result of the review, the governmental decree 118/2011. (VII. 11.) on nuclear safety requirements of the nuclear facilities and on the related legal activities was issued and came into force on August 10, 2011. The reviewed Nuclear Safety Code was published as annexes of the government decree.

Recently the requirements related to the new nuclear facilities have been elaborated (Volume 9. of Nuclear Safety Code) and the extended set of regulations has come into force on 1April, 2012 by government decree 37/2012 (III. 9.).

Based on the nuclear safety codes in the field of nuclear safety it is mandatory to present an independent technical expert’s opinion to the license applications for plant modifications. The registration and evaluation process of these technical experts is prescribed in the Atomic Energy Act (Act Nr. CXVI of 1996) and its executive decree (Government decree 247/2011).

Not applicable.

The Paks NPP Ltd. is a state owned business entity. More than 99% of the shares are held by the Hungarian Electricity Board Ltd. (with authority granted by the state) while the remaining part is held by local authorities. The operator is the Paks NPP Ltd. The technical supporting organizations (TSO) are listed in Section 2.1.2 (Current organizational chart)

Decommissioning is not a current issue for the Hungarian nuclear facilities. Nevertheless, this question has been covered in regulations, as the final phase of the life-cycle of the installations. As for all other phases, it requires a nuclear safety license. For decommissioning, a multi-step licensing procedure is established, where the first step is to obtain the authorities’ consent to terminate operation. A further requirement is a valid environmental protection license based on an environmental impact assessment and public hearings. As in all phases of the life-cycle of a facility, radiation protection authorities are involved in these licensing processes, and they license the appropriate radiation protection program and radiation protection organization separately. During the dismantling, decontamination and other steps, an ongoing task of the authority is the control of the radiation situation within the facility and around it, and the monitoring of personal doses and the discharges and the radiation in the environment. Emergency plans have to be updated with new or likely scenarios and any necessary organizational changes required must be adjusted accordingly.

The Public Limited Company for Radioactive Waste Management is a 100% state owned, non-profit oriented enterprise, which was established by the Director General of HAEA on behalf of the Government. Its tasks include the storage and final disposal of radioactive wastes, generated during the use of nuclear technology, and the dismantling of nuclear installations.

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, shipping of the fabricated fuel assemblies to Hungary, and also the return of the 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 type of fuel assembly with improved parameters is being introduced at the Paks NPP. The enrichment of the new fuel has been increased and it contains burnable poison (Gd isotope). The increased enrichment enhances the economic efficiency of the fuel cycles while the application of the burnable poison compensates for the negative effects of the increased enrichment on the safety features of the reactors and the transport and storage devices. This change conforms with a world-wide trend. In 2010, test operation of 18 assemblies was completed following licensing in 2009. The preliminary use of the test assemblies was necessary for the validation of the design computer codes. When the test program was finished successfully, the HAEA issued a license for the general use of the new fuel. On this basis, the first batch of the new fuel assemblies was loaded at Unit 4 in 2010. The results of a special inspection programs showed that the behavior of the fuel assemblies is in harmony with the preliminary estimates and design requirements. The transition to the new fuel will be finished gradually during the next 4-5 years.

Spent Fuel

According to the Hungarian-Soviet Inter-Governmental Agreement on Co-operation in the Construction of the Paks NPP, 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 NPP 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 favorable 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 NPP, it became necessary to find an interim solution (50 years) for the storage of spent fuel assemblies.

The Interim Spent Fuel Storage Facility (ISFS) (designed by GEC Alsthom UK) at the Paks site is a ‘modular vault dry storage’ type spent fuel storage facility which has been receiving irradiated fuel assemblies from the Paks NPP since 1997. The increase of storage capacity is in line with the demands of Paks NPP. The planned 36 modules are assumed to be capable of storing all spent fuel until the end of the extended service life of the plant. The extension of the storage facility with four new modules was finished at the end of 2011. At present, 20 storage modules are ready. Beginning with module 17 square arrangement will be applied for the storage tubes instead of triangular arrangement that is used in modules 1-16; consequently 527 storage tubes can be stored instead of the original 450. When the storage facility reaches its maximum planned capacity it will be capable to store a total of 17,560 fuel assemblies within the 36 modules.

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 authorizes 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 NPP 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 authorized the Director General of the HAEA to establish the Public Agency for Radioactive Waste Management; this agency has been in operation since 2 June 1998. In line with the corporate forms used in the European Union, Public Agency for Radioactive Waste Management has transformed, as of 7 January 2008, into Public Limited Company for Radioactive Waste Management (PURAM).

On the basis of the Act, PURAM 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 in a greater extent than the accepted value within the country and abroad.

In the field of radioactive waste management the following projects are underway:

a) Disposal of high level and long lived radioactive waste

In 1995 a program 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 shipped back to Russia a domestic repository must be created for other high level waste, including decommissioning waste). The program mainly focuses on investigations in the area of the Boda Claystone Formation in West-Mecsek. An underground laboratory is planned to operate from 2038 to 2054, and the repository will operate from 2064.

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

National Radioactive Waste Repository (NRWR) in Bátaapáti

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 65 km southwest 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 the green light for construction by 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 96.6 % of the lawmakers voted in favor of the joint resolution about the life-extension of the Paks NPP and the waste repository, 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 favor of having the repository, at a local referendum.

In addition to the already ongoing underground research activities, both the licensing procedure and the preparation for construction started in 2006. The competent authority issued the environmental license in 2007. The construction license for the surface part (central and technological buildings) and for 4 underground disposal vaults entered into force in 2008. By October 2008, the surface buildings of the National Radioactive Waste Repository (NRWR) were completed. Later, the authority granted the operation license valid for the surface part of the facility. The operational license allows the interim storage for 3000 drums (200 litre capacity each) containing low and intermediate level solid radioactive waste from the Paks NPP. The first transports of waste were delivered to the facility by the end of 2008, and in December 2011 altogether 3000 drums were stored there. The first two underground disposal vaults of the repository were put into operation in 2012.

Subsequently, from time to time the extension of the operational license to cover future vaults will be required before the construction. The capacity of NRWR meets the demand of the Paks NPP and the underground space will be extended to be enough in the whole lifetime of the Hungarian NPP.

c) Radioactive Waste Treatment and Disposal Facility in Püspökszilágy

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 facility 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 safety of the facility was assessed from 2002 to 2005 and upgrade work is ongoing. The removal of certain long-lived and high activity spent sources from the vaults within the framework of the safety enhancement program provides a good opportunity to achieve this goal. This work, combined with some repackaging of wastes in the facility, has created additional storage capacity which will host L/ILW of non-nuclear plant origin.

A recent achievement in the facility is the conversion of the existing treatment building into a centralized interim storage 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 becomes available.

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 including the HAS Centre for Energy Research (CER), the Nuclear Safety Research Institute (NUBIKI) and the Institute of Nuclear Techniques of the Budapest University of Technology and Economy (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 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 the nuclear safety regulation has to also 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 behavior of the fuel in given conditions);

• Support of activities related to the power upgrading and operational license extension (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 subareas of regulatory importance there were at least two independent experts.

The Hungarian research organizations 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 organizations. However, lifetime extension will presumably cover important plant modifications, like I&C reconstruction. If the construction of new nuclear units in Hungary is approved, the research organizations will definitely be 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 organizations.

The attention of research organizations is also attracted by other nuclear systems. The Generation-4 SCWR (more accurately, its European version, HPLWR) is currently studied in Hungary in the framework of a nationally financed project which gives a good background for participating in an EU project with a similar aim and in several bilateral co-operations. The decision on constructing ITER also attracts scientists to deal with various aspects of fusion technology rather than restricting themselves to plasma physics.

The Centre for Energy Research, together with its Czech, Slovak and Polish partners, with strong technical support of CEA, started the preparatory activities to launch the ALLEGRO project for establishing a 75 MW_th demonstration of gas fast reactor technology in 2010. These preparatory activities include

• finalization of the design and the safety concept of the ALLEGRO reactor

• clarifying the fuel related problems

• defining the R&D needs for starting the licensing and construction of ALLEGRO

• paving the way to license ALLEGRO by the nuclear safety authorities

• preparing the outline of EIA

• defining the technical details of site selection

• proposing the method of site selection

• defining the governance structure of the project

• clarifying IPR

• organizing the political support and financial support of the project.

Most of these activities will be concluded in 2013, however, R&D activities will continue on the medium and long run.

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 in high esteem internationally 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 HAEA and other regulatory bodies including the Czech Republic, Romania, the Slovak Republic and the United States of America.

Regional programs organized by the EU and the IAEA play an important role in the co-operation between the regulatory bodies of the neighboring countries. Moreover, the HAEA is taking part in a quadrilateral cooperation among the new EU member states including Czech Republic, Slovak Republic and Slovenia.

The HAEA takes part in several international co-operations including

• European Nuclear Safety Regulators Group (former European High Level Group on Nuclear Safety and Waste Management) organized 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 pressurized water reactors)

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

• WENRA (Western European Nuclear Regulatory Association)

• ESRA (European Security Regulator`s Association)

• NERS (Association of countries with small nuclear programs)

• ESARDA (European Safeguards Research and Development Association)

• Global Initiative to combat nuclear terrorism

• IFNEC (International Framework for Nuclear Energy Cooperation former Global Nuclear Energy Partnership GNEP)

• 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 NPP is member of several international bodies of major importance including the World Association of NPP 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.

The Budapest University of Technology and Economics Institute of Nuclear Techniques (BME NTI) operates a training reactor with the nominal power of 100 kW_th. Therefore, this university has special nuclear education programs for physics and energy engineering students on BSc, MSc and PhD levels. There is a possibility to get MSc in medical physics, as well. BME offers post-graduate nuclear training for engineers working in or willing to work in the nuclear industry. Special training courses for foreign students are available at the institute.

There is a particle accelerator at the University of Debrecen, 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 NPP 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.

At the initiation of the director general of the HAEA, following thorough negotiations conducted in 2009, the representative of the leading Hungarian nuclear organizations established the Hungarian Nuclear Knowledge Management Database System on June 22, 2010 by signing a joint cooperation agreement at the headquarters of the HAEA. The main objective of the system is to collect and maintain the Hungarian made documents of the expertise accumulated during the application of atomic energy for the future generations. This continuously updated common database facilitates the sharing of knowledge and information within the nuclear community.

The code of conduct developed by the editorial committee was signed on December 15, 2010, and thus the administrative conditions for the operation of knowledge management database were established besides the technical provisions. Consequently, the ordinary use of the “common electronic repository” of the Hungarian nuclear community started in 2010.

According to the latest poll conducted in 2012, 75 % of the population agrees with the operation of Paks NPP and only 22 % is against it. The favorable results are due to the communication efforts of the nuclear society including all players in nuclear field. Openness and transparency are the main values in communication about nuclear energy. There are many ways to communicate with stakeholders, including informing the media about any important event. Seminars, presentations, exhibitions and visits to nuclear facilities are organized to give information about nuclear energy and future plans.

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 National Development - 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 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.

There was an 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 imminent danger, accident or emergency situation in the nuclear facility, it gave an opportunity for deviations from the procedural rules, as well.

Further modification of the Act CXVI of 1996 on Atomic Energy was adopted in 2011. In Act No. CIX of 2006 on the reorganization of the governmental structure the HAEA is listed among the government offices. The scope of authority and duties of a government office are required to regulate on the statutory level. Until 2011, the legal regulation of scope and duties was included in two different sources: the Act on Atomic Energy and the Governmental Decree No. 114/ 2003 on the Scope of Duties, Authority and Competence to Impose Penalties of the Hungarian Atomic Energy Authority, and on the Activities of the Atomic Energy Co-ordination Council. The modification makes an end of the two level regulation system and takes up all the relating regulation to the statutory level. The modification concerned also the use of subsidies by municipal associations around nuclear facilities and now they may use up the subsidies for information, monitoring, operation as well as to ensure municipal development.

According to the Act the licensee is obliged to present an expert’s report before an administrative procedure (non-procedural expert). The amendment locates the task of previous evaluation of independent nuclear expert to the Hungarian Chamber of Engineers. The Hungarian Chamber of Engineers as an independent professional public body can give substantive assistance to the regulatory body. The new modification of the Act defines the Design Basis Threat (DBT) and nuclear security and provides a clear basis for allocating responsibilities between the organizations involved. The Act also identifies protection functions that are the responsibility of the State. The Government is empowered by the Act to elaborate more detailed provisions of DBT and nuclear security in a governmental decree.

The basic principles of licensing procedure of the NPP, and the concerned authorities taking part in licensing procedure are regulated by Chapter III of the Act on Atomic Energy. To establish a new NPP or a new NPP unit the preliminary consent in principle of Parliament is required for starting preparatory work, whereas to establish ownership of a NPP that is in operation or to transfer the right of operation the consent in principle of the Government is required. In concordance with regulations in force, a license shall be obtained from the authorities for all phases of operation (siting, construction, commissioning, operation, decommissioning) during the lifetime of a NPP. Moreover, a separate license shall be obtained for all plant level or safety related equipment level modifications. Within the licensing procedures, technical aspects are enforced by legally delegated authorities. The Authority shall take account of opinions of legally delegated special authorities. When the installation of a new NPP is being considered, the precondition for launching the licensing procedure is the existence of an environmental protection license. During the licensing procedure the Licensee prepares a preliminary environmental impact study. The environmental protection authority then sends the preliminary impact study to the relevant authorities to seek the opinion of authorities of potentially affected areas who – in turn – expose it to public view. The environmental protection authority, if it does not reject the detailed environmental impact study that has been submitted, shall subsequently hold a public hearing. Based on the detailed environmental impact study and on any responses received, the environmental protection authority may issue an environmental protection license for the construction and operation of the plant.

The safety-related licensing of a nuclear installation takes place after the environmental licensing. The environmental protection authority plays the role of special authority in the course of licensing a nuclear installation. During the licensing of installations and equipment, and the licensing of their modifications, the contributing procedure of the environmental protection special authority provides the possibility for the civil organizations to act as clients. The decisions of the nuclear safety authority are made public. Those licenses to be issued based on Act CX. of 2001 on Electric Energy are also required for establishing and operating a nuclear plant. Licenses are valid for fixed periods; on request and provided that the necessary requirements are fulfilled, they may be extended. A licensee can appeal against the decisions of the Authority. It has the right to take the case to court.

Every ten years a periodic review of the safety of the NPP is performed on the basis of a comprehensive, predefined program known as the Periodic Safety Review. Any decision on the further validity and conditions of the operating license is made within the framework of the review. For certain facilities, beyond the regulatory licensing procedure, the Act on Atomic Energy prescribes higher approval as well.

LIST OF LEGAL LAWS, RULES, DECREES Governing the PEACEFUL application of Nuclear Energy (www.oah.hu)

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