Hungary has commenced construction on the Pakš II nuclear power station, marking a significant expansion of its nuclear capabilities. The initial concrete was poured in early February 2026, following over two years of preparatory work at the site located near Paks. This expansion will introduce two new reactors, each with a capacity of approximately 1,200 megawatts, effectively doubling the output of Hungary’s existing four-reactor complex. The project represents a vital component of Hungary’s energy strategy focused on establishing low-carbon baseload generation and is being developed in collaboration with Russia’s state nuclear corporation Rosatom, primarily financed through a long-term loan from Russia. The total investment for the new units is estimated at €12.5 billion, with operations expected to commence in the early 2030s and a projected operational lifespan of at least 60 years.
In light of this development, Serbian officials have expressed interest in acquiring a minority stake in the Pakš II project, proposing ownership ranging from 5% to 10%. Securing such a stake would enable Serbia to receive a fixed proportion of the electricity produced, thereby potentially providing a stable energy supply to meet its growing demand. This interest is part of Serbia’s broader strategy to diversify its energy sources and enhance regional integration, a topic previously raised by President Aleksandar Vučić regarding cooperation with Hungary on nuclear energy.
Serbia’s rationale for pursuing involvement in Pakš II extends beyond financial considerations. Experts within Serbia view participation as a strategic move to integrate more fully into regional energy dynamics, which could enhance energy security and open up revenue opportunities through electricity sales or participation in wholesale markets. Serbian officials assert that ownership would align with long-term goals for reliable low-carbon energy amid variable regional market conditions.
The existing Paks nuclear complex is already pivotal to Hungary’s energy landscape, historically accounting for over half of the country’s electricity generation. The addition of the two new reactors is anticipated to solidify this facility’s status as a leading source of clean electricity in Central Europe. Despite facing regulatory hurdles and geopolitical challenges—particularly concerning EU procurement standards and financing—the Hungarian government maintains that the project complies with all safety regulations and remains central to its national energy agenda.
Serbia’s interest in acquiring a stake in Pakš II coincides with shifts in its own energy policy framework. Recent discussions have revived considerations around domestic nuclear energy development and legislative changes necessary for deploying nuclear power within Serbia. Engaging with an established plant like Pakš II could not only secure future power supplies but also serve as an educational opportunity for Serbia’s potential nuclear initiatives.
However, analysts warn that the complexities surrounding cross-border nuclear investments involve careful economic and geopolitical evaluations. The costs associated with acquiring a stake must be balanced against other investment options within domestic generation or alternative power agreements. Additionally, Serbia’s involvement in a project under Russian contracts on EU territory introduces nuanced geopolitical implications. Meanwhile, Hungary’s efforts to foster energy cooperation highlight a regional trend where nuclear power is increasingly recognized as a stable counterpart to intermittent renewable sources and a safeguard against fossil fuel price fluctuations.
As construction on Pakš II advances, Serbia’s pursuit of minority ownership will likely continue to shape discussions with Hungary and other regional stakeholders regarding shared energy infrastructure and strategic electricity planning. The realization of Belgrade’s ambitions remains uncertain but underscores an evolving energy landscape across Central and Southeastern Europe, where nuclear energy is regaining strategic importance.
