Serbia is exploring the possibility of acquiring a minority equity stake ranging from 5% to 10% in Hungary’s Paks 2 nuclear power expansion project. This initiative is viewed by energy analysts and policymakers as a significant step towards enhancing Serbia’s involvement in nuclear energy and fostering regional energy integration, following a prolonged period without domestic nuclear production. The Paks 2 project, which is currently under construction, features two VVER-1200 reactors developed by Russia’s Rosatom and represents one of the largest investments in Central European energy infrastructure, promising a long-term source of low-carbon electricity.
Acquiring a stake in Paks 2 could offer several strategic advantages for Serbia’s energy sector. Even a minority ownership would grant Serbia a proportional entitlement to the electricity produced by the new reactors, potentially bolstering supply stability and providing a buffer against fluctuations in fossil fuel markets. Analysts suggest that participating in the regional nuclear supply chain could diversify Serbia’s energy portfolio, which has traditionally depended on coal and hydrocarbon imports, thereby mitigating the impact of regional price volatility that has affected electricity costs in recent years.
Experts like Slavko Dimović, Director of the Nuclear Sciences Institute “Vinča,” highlight the symbolic and practical significance of investing in an established nuclear project. Such a move would mark Serbia’s re-entry into the nuclear arena after over thirty years, facilitate technology transfer, and expedite the development of a skilled workforce in nuclear technology. Dimović refers to this as an “entrance into the nuclear family,” which could stimulate broader capacity building and public engagement, ultimately enhancing national competence and confidence in atomic energy.
However, experts caution that investing in Paks 2 should not be perceived as a comprehensive solution for Serbia’s long-term energy independence. Serbian authorities have indicated that simultaneous efforts to develop domestic nuclear capabilities—such as modern small modular reactors (SMRs) and possibly larger facilities within Serbia—remain essential components of their national strategy. This dual approach seeks to provide immediate access to reliable nuclear-generated electricity while also aiming for future self-sufficiency in power generation and technological development.
From a geopolitical perspective, Serbia’s involvement in the Paks 2 project aligns it with a network of regional cooperation that intersects with broader EU and international energy policies. Although Paks 2 utilizes Russian technology, the involvement of European partners in various technological aspects and recent diplomatic initiatives aimed at securing regulatory and financing arrangements reflect the complexities inherent in cross-border nuclear collaboration today. For Serbia, this engagement offers an opportunity to strengthen ties with neighboring EU member states and supports efforts to synchronize regional energy markets and infrastructure.
A minority stake in Paks 2 could afford Serbia a reliable supply of low-carbon electricity while establishing its presence in modern nuclear energy markets. Additionally, it would provide valuable insights that could inform future domestic nuclear projects, demonstrating Serbia’s commitment to meaningful participation in regional energy cooperation after decades without its own atomic generation capabilities.
