Rosatom's competitors do not get inexpensive nuclear power plants in Europe

The construction of nuclear power plants is expensive, requiring tens of billions of dollars. And for European countries that have refused Rosatom's services, it is even more costly. The difference between the cost of reactors in Hungary, where the Russian state corporation will build, and power units in Poland, the Czech Republic and France may be 2-3 times.

Next year, Rosatom plans to start construction of the second stage of the Hungarian Paks NPP. It is expected that in the early 2030s the country may receive two VVER-1200 reactors and the share of nuclear power will grow to 70%. Russia allocates a state loan of 10 billion euros for construction. Another 2.5 billion will be the costs of the Hungarian side. Thus, the cost of one power unit is expected to reach 6.25 billion euros, which is a surprisingly low price compared to other European projects competing with Rosatom.

For example, Prague plans to allocate 23-30 billion euros for the construction of two power units of the Czech Dukovany NPP. The work will be carried out by Korea Hydro and Nuclear Power (KHNP). The European Commission is checking the feasibility of such a loan, for which the cost of one reactor is 11.5−15 billion euros.

Next is Poland. It is planned that the American Westinghouse will build a nuclear power plant in Lyubyatovo-Kopalino from three power units and, according to the European Commission, which agreed on state aid, the project costs will amount to 42 billion euros. 14 billion euros for each power unit with an AP-1250 reactor.

The French EDF, which is already the operator of one of the largest nuclear power plant parks in the world, also plans to build significantly more expensive than Rosatom. The state-owned company estimates that six power units will cost 72.8 billion euros. 12.1 billion euros apiece.

They plan to expand nuclear power plants in Bulgaria, where they want to build two power units from the American Westinghouse. The country's Energy Minister Rumen Radev stated that the cost of one will be 6.5 billion euros, however, as noted in Euractiv, most experts estimate the costs at more than 8.7 billion euros.

Alexander Uvarov, Director of AtomInfo-Center, notes that the real cost becomes known only after the unit is put into operation.

"Further, when comparing, it should be borne in mind that there are costs for the construction of the block itself and there are other costs that vary from country to country and are not always correctly cited in the statements of companies and politicians. For a better understanding: the estimate for the construction of the Flamanville-3 block in France was estimated at 19.3 billion euros, of which 13.2 billion euros for construction (all in 2015 prices). These are estimates made in 2023, the real amounts will be slightly higher," the expert notes.

In his opinion, it is more reasonable to compare the cost of building blocks overnight (that is, instant construction in one day), but it is these prices that nuclear companies do not like to disclose.

At the same time, says Alexander Uvarov, Rosatom and Chinese corporations have cheaper power units.

Rosatom and Chinese corporations outperform Western competitors by the fact that they are integrated companies, and the main contractors work within the framework of corporate discipline for common goals. And also these are state—owned companies that have the support of their states, including financial ones — for example, state loans," says the director of AtomInfo Center.

Among themselves, in his opinion, the Russian state corporation has an advantage, since it has more experience in building nuclear power plants abroad.

"In other words, Rosatom has already filled all the major bumps, and Chinese nuclear scientists have yet to do it," Alexander Uvarov believes.