Eastern Europe plans major nuclear expansion amid funding challenges

The 1986 Chornobyl explosion and the fall of communist regimes slowed nuclear projects in Eastern Europe. Now, as Western Europe upgrades old reactors, Eastern Europe plans a significant expansion, but funding and feasibility remain concerns.

Countries like the Czech Republic and Romania aim to build at least a dozen new nuclear units costing nearly €130 billion ($139 billion), with the first operational within a decade, Caliber.Az reports citing projections gathered by foreign media.

These nations inherited ageing plants from the 1970s and 1980s. Governments are pushing for new facilities to meet EU green energy goals and reduce dependence on Russian gas.

However, they lack the necessary expertise and funding, requiring government intervention and EU subsidies. Financing is the critical issue, according to Nuclear Energy Agency economist Jan Horst Keppler.

Western Europe has mixed views on nuclear power. Some countries plan to phase it out, while others continue to rely heavily on it. New reactors in Finland and France are starting up, with government subsidies likely to receive EU approval despite the high costs.

Poland, historically reliant on coal, is negotiating financing for its first nuclear plant, potentially costing over $30 billion. Eastern European countries await EU aid under the 2028-34 budget cycle. Financing strategies vary, with Poland considering contracts for difference and Romania looking at green bonds and state loans. The Czech Republic plans to finance 90% of its costs through government loans.

European nuclear projects often face delays and cost overruns. Slovakia's Mochovce site, for example, was delayed by a decade and doubled its projected cost. Despite support for nuclear power in Slovakia, investment has lagged.

Currently, only Slovakia and Hungary are building new nuclear plants within the EU. Hungary's Paks II plant is financed by Russia, but Rosatom is unlikely to be a future supplier due to the Ukraine conflict.

Challenges in Slovakia include a tight supply chain and a shortage of experts. France’s new reactor program will strain European resources further. Despite starting construction, progress is slow due to these issues.