back

HUNGARY

(updated on August 2006¹)

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 2005, there lived 10 077 000 people in the country and the population density is 108,3 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 2005 the natural decrease of population is 0.38%, while there is an increase of 0.17% due to migration from other countries. The net decrease was 0. 21% in 2005.

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; greatly dependent on international developments as well as on external development conditions. The Hungarian economy has undergone a dramatic transformation since 1995 and as a result the gross domestic product per employed person shows 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. On annual average, the gross domestic product expanded by 4.1%. Dynamic growth was coupled, as before, by a favourable, improving structure: economic growth was driven by net exports. The value of exports increased by 11.4% while the dynamics of import decreased significantly. Foreign direct investments realised in 2005 were practically the same as in previous year. Investments contributed to grow well in excess of consumption. Dynamic industrial growth prevailed in 2005: industrial output grew by 7.3% in volume terms relative to the previous year. Industrial productivity rose only minimally (by 0.8%). Net real earnings grew by 6.3% on average. Despite economic growth of over 4%, unemployment rates went up to 7.2% on average (from 6.1% in 2004). Consumer price inflation fluctuated in the range of 3.5-3.9% for most of the year. After a series of interest cuts the central bank interest rate reached 6% by September 2005.

TABLE 1. PER CAPITA GROSS DOMESTIC PRODUCT (GDP) AT CURRENT PRICES, 1990-2004

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 "Energy Policy of Hungary" was approved by the Parliament in 1993 and it has still been legally in force. In line with the Parliament's resolution every two years the Ministry of Economy and Transport has to report to the Parliament the energy policy developments, and the Parliament formally approves the Report.

The document from 1993 outlines the following strategic objectives:

• Diversification of energy supplies and elimination of import dependence on the former Soviet Union (mainly Russia).
• Improving protection of the environment and pollution mitigation.
• Increasing energy efficiency through the modernisation of supply structures and better management of electricity consumption.
• Improving public acceptance of new energy facilities through provision of better information to the general public.

The general aim of this strategy was to lay the foundations for an open energy economy, gradually being integrated into the EU. The Hungarian energy policy aims to maintain a balance between security of supply, cost-effectivity, energy efficiency and the environment.

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. The endeavours of the European Union to establish a uniform internal market have included the liberalisation of the energy sector. The Electricity Act CX of 2001, the Act XLII of 2003 on Natural Gas Supply and the Act XVIII of 2005 on District Heat Supply, including the related governmental and ministerial decrees, create the legal background for the operation of the energy market. The electricity market was liberalised on 1 January 2003, and the natural gas market on 1 January 2004, with the simultaneous existence of regulated and competition markets ever since that. From 1st July 2004 all non-household consumers are defined as eligible consumers. The "real" competitive market is currently about 34% in the electricity sector, and 8-9% in the natural gas sector. The total market will be open from 1 July 2007, which timing is absolutely in line with the EU relevant directives. Efficiency and the application of renewable energy are also important pillars of the Hungarian energy policy.

Beyond incentives, the internalisation of the externalities has been started, and now there are some extra burdens on fossil fuels (energy tax, environmental levy). A key tool to reach the EU, and national climate change goals is the introduction of the EU emission allowances trade system (EU ETS) from 2005. The Hungarian Parliament approved the new Act on Carbon-dioxide Emission Trade in April 2005 to harmonize with the EU ETS Directive. In line with the best estimation Hungary has a realistic chance to meet the Kyoto commitment.

The Hungarian Government has decided to prepare a new Long Term Energy Strategy (to 2030). The draft is planned to be finalised in 2006 and ready for the Parliament to adopt 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 the 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). In the last four years the main task was the adoption of the relevant EU directives.

Hungary became the member-state of the European Union on 1st May 2004. These events necessitated further harmonizing the Hungarian legal framework to the EU law. After two years of preparation the modification of the Act on Electricity CX. (2001) had been passed by the Parliament in August 2005, followed by the Enforcement Decree and other secondary legislation. The harmonisation and the electricity policy objectives have reflected in the modified Act on Electricity. The Act retained the two parallel electricity markets, namely a market to supply non-eligible consumers and a competitive market to supply eligible consumers. Access to the electricity grid is guaranteed at regulated prices. Transmission, distribution and system operation tariffs are set and published by the Minister of Economy and Transport. New capacities are established on a commercial basis through an authorization process. The introduction of the improved regulation is scheduled for 1st July 2007.

The figure below shows the simplified model of the Hungarian electricity industry as stipulated by the modified Act.

The total installed capacity of the electricity industry was 8558 MW(e) in 2005. The electric energy produced by Hungarian power plants was 35046 GWh, 20% of which was produced in coal fired plants, 34% in carbon-hydrogen (mainly gas) fired plants, 39% in nuclear plants and 5% from renewable sources.

1.3.2.  Stakeholders in the energy administration

The mission of the Ministry of Economy and Transport (www.gkm.gov.hu) is to promote the formation of an innovative, knowledge-based economy which grows fast, produces high added value and therefore is competitive both in the single European market and globally. Only by creating such economy can Hungary realise rapid convergence to the developed EU countries. The Ministry also plays a key role in the Hungarian energy policy. The responsibility of the reliable, efficient and environment friendly energy supply for Hungary belongs to the Minister of Economy and Transport. Directly under the political top level the energy issues handled by the State Secretary for Infrastructure. The responsibility of this State Secretary covers the energy, industry and environmental issues.

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 budgetary corporate body with separate and independent financial management. The MEH is self-financing. Licensees will be charged supervisory and administration fee for its activities. Following a proposal by the Ministry of Economy and Transport, 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 a 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 the 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. A regulatory authority is operating effectively.

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 Erömü Kft.  www.aes.hu
Bakonyi Erömü Rt.  www.bakonyi.hu
Mátrai Erömü Rt.  www.mert.hu
PANNONPOWER Rt.  www.pannonpower.hu
Vértesi Erömü Rt.  www.vert.hu (Member of the MVM Group)
Paksi Atomeromu Rt.  www.npp.hu (Member of the MVM Group)
Csepeli Áramtermelö Kft.  www.atel.hu
Budapesti Erömü 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 Müvek Rt.  www.elmu.hu
E.ON Észak-magyarországi Áramszolgáltató Rt.  www.eszakdunantul.com

1.3.4.   Decision Making Process

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. Nuclear power plants should be approved by the Parliament independently of their capacity.

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 Nuclear Energy Research Institute in 1993. The Budapest Research Reactor is a tank type reactor with 10 MWth 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 the education in nuclear field. It is a pool type reactor with 100 kWth 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). As a result of modifications, the electrical output was increased by about 20 MW(e) at the same nominal thermal capacity of the reactors.

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 the 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. Today the Hungarian Atomic Energy Authority is under the control of the Minister of Justice. In dealing with administrative matters within the competence of the HAEA, the various independent units of the HAEA function as responsible authorities.

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 AERI, Budapest) of the Hungarian Academy of Sciences operates the 10 MW Budapest Research Reactor. This Institute 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 Techniques of the Technical University of Budapest (BME NTI) operates a training reactor (pool type, 100 kWth), runs courses for engineers, physicists, chemists and environmentalists, and does research in a number of specialised fields. (homepage: www.reak.bme.hu)

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

The "Fodor József" National Public Health Centre, "Frédéric Joliot Curie" National Research Institute for Radiobiology and Radiohygiene (OSSKI, Budapest) performs a wide spectrum of research that includes 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) deals with many fields, e.g. safety analysis of nuclear power plants, PSA and severe accidents, and noise analysis. (homepage: www.veiki.hu)

The Power Engineering and Contractor Co. (ETV-EROTERV Co., Budapest) is concerned with the design, construction, commissioning and operating management of nuclear facilities. Its activities also include waste management (treatment, storage and disposal). (homepage: www.etv.hu)

The Institute for Isotope and Surface Chemistry (MTA IKI) of the Hungarian Academy of Sciences performs a wide range of research related to the use of radioactive materials and nuclear techniques, among them a research and development programme for nuclear safeguards. MTA IKI provides the expertise 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.

2.3.  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. In 2005 the rated thermal power of each unit is 1375 MW, the rated electric power outputs of the four units were 467 MW, 468 MW, 460 MW and 471 MW, respectively.

The four units of Paks NPP 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.

In 2005 the electricity production of the Paks NPP amounted to 13 834 GWh, providing 39.5% of the country electricity needs while total load factor for the NPP was 84.6 % (Unit 1- 92.2%, Unit 2-75.3%, Unit 3-80.9%, Unit 4-90.1%). The reduced load factor for Unit 2 was due to its partial operation.

The recovery project after the serious incident in 2003 (details on www.haea.gov.hu) is going on to remove the cleaning tank from the reactor hall. The actual elimination is expected to begin in the 4th quarter of 2006 and shall last for about three months.

The power uprate program at the Paks NPP is under execution. At the end of the program all four units will be able to produce one hundred and eight percent of their nominal thermal power. The output of unit four has been increased first, and the other three units will follow - unit one comes first in 2007 and the other two in 2008. By 2009 the nominal power will be increased to over 2000 MWe at Paks NPP.

The original 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 approved by the responsible authorities. In November 2005, the Hungarian Parliament took note about the planned life-extension of the units. In accordance with its resolution nuclear is considered as a long-term and safe solution for meeting the country's electric energy demands. This resolution of the Parliament is strongly supported by the public.

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

A Hungarian-Soviet Inter-Governmental Agreement on Co-operation in the Construction and Operation of Paks Nuclear Power Plant was signed in 1966, and an Additional Protocol was added to it in 1994. In these agreements, still in force, the Russian party undertakes to accept delivery of the spent fuel and the Hungarian party undertakes to purchase the necessary new fuel assemblies exclusively from Russia for the whole life-time of the nuclear power plant. After having shipped back the spent fuel, Hungary was not required to take back the radioactive waste and other residuals from the reprocessing of such fuel.

A significant part of the spent fuel was shipped back to the Soviet Union (later Russia) between 1989 and 1998. However, in the 1990's, contrary to the terms of the original agreement though in accordance with international practice, the responsible Russian authorities wished to have Hungary take back the residual radioactive waste and other by-products created during reprocessing.

At present Hungary does not have the capability to dispose of high-level or long lived radioactive waste. It was for these reasons that the licensing and construction of an interim spent fuel storage were started in 1993. The nuclear power plant commissioned the British company GEC Alsthom to build a dry storage facility of the MVDS (modular vault dry storage) type. One of the advantages of this type of construction and storage technology is that the number of storage modules can be increased in a modular system. The first eleven modules (each for 450 assemblies) are ready and there were 4267 assemblies in the facility by the end of 2005. The facility solves the storage of the assemblies for a period of 50 years. The site of the Interim Spent Fuel Storage Facility is in the immediate vicinity of Paks Nuclear Power Plant.

As yet, there is no decision on the back-end of the fuel cycle, but - 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.

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 worth while 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.

Facility Enlargement

In the middle of the year 2005, the Hungarian Atomic Energy Authority Nuclear Safety Directorate (NSD) gave a construction license for the extension of the facility for the purpose of storing the spent fuels in a further four chambers.

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;
   -  it shall not affect to a greater extent human health and the environment abroad than that accepted 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 as a means of solving the disposal of high level and long lived radioactive wastes (even if the spent fuel of Paks NPP can later be back-transported to Russia, a domestic repository must be created for other high level waste, including decommissioning waste). The programme mainly focuses on investigations in the Boda Claystone Formation in the area of the Mecsek Hill, that seems to be suitable for the repository. 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, Hungarian Parliament, by its resolution 85/2005. (XI. 23.) OGY, gave its preliminary approval in principle (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.

On the basis of the available investigation results, the facility would be constructed on the outskirts of Bátaapáti village (in the Üveghuta area) at a depth of 200-250 m below the surface, and at present, a chamber-type arrangement seems preferable. The ongoing underground geological exploration in the granite block qualified as suitable is aiming at defining the location of the repository. Now two inclined shafts are prepared extending to a length of about 1700 m. In December 2005 the respective lengths of the shafts had reached 335 and 357 m.

c)  Radioactive Waste Treatment and Disposal Facility

The repository for institutional low and intermediate level radioactive wastes, the Radioactive Waste Treatment and Disposal Facility, was commissioned in 1976. It is situated in Püspökszilágy some 40 km north-east of Budapest. The repository is a typical near-surface facility, composed of concrete trenches (vaults) and shallow wells for spent sealed sources. The disposal capacity of the facility is 5040 m3, and by the end of 2004 the repository was full.

The safety of the facility has not previously been the subject of any comprehensive assessment. Therefore, the regulatory body requested to conduct a comprehensive safety assessment and some complementary geological investigations. From the results of the safety analysis it could be stated that the operational and environmental safety up to the end of the passive institutional control of the Radioactive Waste Treatment and Disposal Facility is properly guaranteed. The facility as a whole is suitable for safe disposal of low and intermediate level short-lived wastes. Beyond the passive institutional control, however, mostly because of the significant amount of long lived components disposed of in the repository, inadvertent human intrusion - or any other scenario resulting in the getting on surface of waste after deterioration of concrete barriers - could cause the exceeding not only the dose constraint but even the dose limit.

Based also on international assistance provided by the IAEA and by PHARE projects, a safety enhancing program was elaborated. Between 2001 and 2004 the main areas of the upgrading activities were physical protection, radiation protection, data acquisition, transportation. Now the removal of certain long-lived and high activity spent sources from the vaults is in preparation.

According to the plans of the Public Agency for Radioactive Waste Management, the repository should be operational for an additional 40-50 years by accommodating radioactive waste from the small-scale producers of the country. Bearing this approach in mind, measures are to be taken to provide additional disposal capacity within the site. The removal of the above mentioned long-lived and high activity spent sources from the vaults provides a good opportunity for this undertaking.

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 quick 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.

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 of Canada, the Czech Republic, France, Romania, Russia, the Slovak Republic, the United Kingdom 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

• the Western European Nuclear Regulatory Associations (WENRA)
• the VVER Forum (established by the regulatory bodies of countries operating Soviet designed pressurised water reactors)
• the association of countries with small nuclear programmes (NERS)

The HAEA takes part in the work of the Zangger Committee (dealing with controlling the export of nuclear materials), and that of the Nuclear Suppliers Group (NSG) (dealing with controlling of export of nuclear materials for dual use), too.

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 activities of 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 authority of the HAEA.

The organizational changes involved two groups of issues. On the one hand, the Nuclear Safety Directorate of the HAEA (NSD) acts as the first instance authority in all nuclear safety regulatory issues of nuclear facilities. The regulatory tasks involve licensing, inspecting (supervising), analyzing, assessment and event investigating activities, as well as further tasks related to nuclear emergency preparedness. The NSD is headed by the Deputy Director General of the HAEA. On the other hand, in all administrative matters falling into the scope of the HAEA, the Director General leads the HAEA and proceeds in the second instance. The Director General of the HAEA and his Deputies are appointed and relieved by the Prime Minister.

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 Justice- 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 NSD 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 NSD 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 that compel 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 8 of 1987 on the promulgation of the convention on physical protection of nuclear materials

Act LIII of 1995 on the general rules for the protection of the environment

Act CXVI of 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 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 the 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 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 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 72/2000. (V. 19.) on the special conditions of acquiring the possession rights of certain materials, equipment and facilities belonging in the scope of application of atomic energy, as well as on the procedure for reporting their possession and operation

Governmental Decree 20/2001. (II. 14.) on the environmental impact assessment

Governmental Decree 136/2002. (VI. 24.) on the promulgation of the agreement on cooperation in the field of the peaceful use of atomic energy between the Government of the Republic of Hungary and the Government of Australia

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

Governmental Decree 114/2003. (VII. 29.) on the duties, scope of authority and the jurisdiction of imposing penalties of the Hungarian Atomic Energy Authority, and on the activity of the Atomic Energy Co-ordination Council

Governmental Decree 165/2003. (X. 18.) on the information to be provided to the public in nuclear and radiological emergencies

Governmental Decree 155/2004. (V. 14.) on the licensing of shipment of radioactive waste across the national border

Governmental Decree 244/2004.(VIII. 25.) on the promulgation of the protocol on conditions concerning the reshipment to the Russian Federation of Russian-made (irradiated) spent fuel assemblies

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

Governmental Decree 89/2005. (V. 5.) on the nuclear safety requirements of nuclear facilities and the related regulatory activities

Annex No. 1 Nuclear Safety Code Volume 1. Regulatory procedures for nuclear power plants

Annex No. 2 Nuclear Safety Code Volume 2. Quality management of nuclear power plants

Annex No. 3 Nuclear Safety Code Volume 3. Design requirements for nuclear power plants

Annex No. 4 Nuclear Safety Code Volume 4. Safety requirements for the operation of nuclear power plants

Annex No. 5 Nuclear Safety Code Volume 5 Nuclear safety code for research reactors

Annex No. 6 Nuclear Safety Code Volume 6 Nuclear safety code for spent fuel interim storage facilities

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 Construction and Cityplanning 11/1984. (VIII. 1) on the rules for constructing nuclear facilities

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 Public Welfare 23/1997. (VII. 18.) on the exemption levels (activity-concentrations and activities) of radionuclides

Decree of the Minister of Industry, Trade and Tourism 39/1997. (VII. 1.) on the system of accounting and the international control of nuclear materials and the jurisdiction of certain regulatory rights

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

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 fees for final disposal of radioactive wastes

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

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

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 8/2002. (III. 12.) on the establishment and operation of radiological monitoring and data collecting network in the health-care sector

Decree of the Minister of Defence 33/2002. (V. 3.) on the application of Act CXVI of 1996 on atomic energy regarding national defence issues

Decree of the Minister of Health, Social and Family Affairs 47/2003. (VIII. 8.) on certain issues of interim storage and final disposal of radioactive wastes, and on certain radiohygiene issues of naturally occurring radioactive materials concentrating during industrial activity

Decree of the Minister of Interior 33/2004. (VI. 28.) on the central and local accountancy system for radioactive materials

Decree of the Minister of Interior 41/2004. (VII.7) on the operation and administration of the Central Nuclear Financial Fund

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

In accordance with the relevant Government Decree, the Public Agency for Radioactive Waste Management attends to the planning, construction and treatment duties associated with the disposal of radioactive waste and with the storage and disposal of spent fuel elements. It is also responsible for activities related to the decommissioning of nuclear facilities, as well as for the operation of the Radioactive Waste Treatment and Disposal Facility in Püspökszilágy and the Interim Spent Fuel Storage Facility. Its duties include preparation of the annual, intermediate and long-range plans for the Central Nuclear Financial Fund.

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. Since 10 November 2004 the Hungarian Atomic Energy Authority has been supervised on behalf of the Government by the Minister of Justice.

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 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 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.

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

4.1.  Energy Policy

In 2005, the Hungarian Atomic Energy Authority issued a license in principle for the upgrading of the nominal power by about 8 %. This upgrading is planned to be realised step-by-step on the units, starting with Unit 4 in 2006.

In November 2005, Hungarian Parliament, by its resolution 85/2005. (XI. 23.) OGY, took note about the planned life-extension of the units. In accordance with the resolution nuclear is considered as a long-term and safe solution for meeting the country's electric energy demands.

This resolution of the parliament is strongly supported by the public. According to the latest poll 75 % of the Hungarian population agrees with the operation of Paks NPP and only 22 % opposes it, 60 % supports the life-extension and 30 % is against.

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.

For low and intermediate level radioactive waste management, 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, Hungarian Parliament, by its resolution 85/2005. (XI. 23.) OGY, gave its preliminary approval in principle (a formal requirement in accordance with Act on Atomic Energy).

The fact that at the vote on the joint resolution about the life-extension 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.

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

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

_______________________________________

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).