NRC CHAIRMAN MEETING WITH HUNGARIAN NUCLEAR ENERGY

C O N F I D E N T I A L BUDAPEST 001082 SIPDIS STATE FOR EUR/CE JAMIE LAMORE USNRC FOR DKLEIN, BWITTICK, MDOANE E.O. 12958: DECL: 11/10/2018 TAGS: ENRG ETTC TRGY KNNP IAEA KTIA CVIS HU SUBJECT: NRC CHAIRMAN MEETING WITH HUNGARIAN NUCLEAR ENERGY REGULATORS AND VISIT TO NEW RADIOACTIVE WASTE DISPOSAL SITE Classified By: PolOff Ryan C. Leong; reasons 1.4(b) and (d). ¶1. (C) SUMMARY. Nuclear Regulatory Commission (NRC) Chairman Dale Klein met with representatives of the Hungarian Atomic Energy Authority (HAEA),addressed the Hungarian Academy of Sciences and visited Hungary's new radioactive waste facility from September 22-25, 2008. Chairman Klein emphasized the growing need for alternative energy sources other than oil for both energy security and political stability. In addition, he praised the recent completion of the low- to medium-level radioactive waste facility in Bataapati as a key component of Hungary's continued use of civilian nuclear energy in a regulated and safe manner. Chairman Klein was informed about HAEA's efforts to address the future power requirements of Hungary which may include a choice between a new Russian-built VVER1000 reactor or a new Westinghouse AP1000 reactor. End summary. Addressing the Hungarian Academy of Sciences -------------- ¶2. (U) Chairman Klein delivered a keynote address to an invitation-only audience of energy and regulatory officials at the Hungarian Academy of Sciences on September 23. His speech, entitled "Nuclear Renaissance," highlighted the best practices encouraged by the NRC, the funding and staffing challenges faced by regulatory authorities around the world, and the new attention given to nuclear energy as a viable and safe alternative to petroleum in light of growing concern over global warming. During the question and answer period, Hungarian officials were particularly concerned with government funding for regulatory staff, maintaining a cadre of qualified nuclear engineers and the effect of the upcoming U.S. elections on NRC staffing and funding. Chairman Klein also conducted several interviews with Hungarian national media networks, noting the close working relationship between the NRC and HAEA and the achievement of completing a new radioactive waste disposal facility, given the reservations from communities around the world. Wary of reliance on Russia -------------- ¶3. (C) During private discussions with Dr. Joszef Ronaky, HAEA Director General, and his senior staff, Ronaky made clear that energy security and diversifying Hungary's future energy sources were a top priority. Hungary's current domestic electricity generation is derived from 37 percent nuclear energy, 30 percent natural gas and 33 percent oil and coal. Roughly 80 percent of Hungary's oil and natural gas is imported through pipelines from Russia, via Ukraine, and all of Hungary's nuclear fuel is from Russia. Domestic electricity demand is projected to grow but simply increasing electricity imports via power lines was not viewed as a viable option given the capacity limitations of the cross-border power grid. The leading options for future domestic energy production were new natural gas plants and new nuclear power plants. ¶4. (C) Professional bias aside, Ronaky and the HAEA were exploring new nuclear power options as new natural gas plants would only increase Hungary's reliance on Russian gas. HAEA officials were considering the construction of new pressurized water reactors (PWRs) on the site of the current nuclear power facility in Paks. The Russian-built VVER1000 and Westinghouse Electric Company's AP1000 were the two top designs under consideration, however Ronaky expected significant pressure to go with the VVER1000 design given the current operation of four VVER440/213 units at the Paks site. (Note: Members of Parliament have also advised us that Russia's offer to dispose of spent fuel will figure prominently in the GoH's ultimate decision. End Note.) Naturally this would not enhance energy diversification but only create another bond between Hungary and Russia in the domestic energy market with the ancillary training, spare parts and fuel that would be part of any VVER deal. France's Areva designs were viewed as too large and boiling water reactors (BWRs) were not being considered. New radioactive waste disposal facility -------------- ¶5. (U) Although the four VVER440/213 units at Paks have undergone significant safety and performance enhancements since opening in 1983, Hungary is preparing for eventual decommissioning with the October 2008 grand opening of the new radioactive waste repository at Bataapati in southern Hungary. It is noteworthy that Hungary has established themselves as a leader in the field of nuclear waste management with the opening of this repository, and has done so with a high degree of public involvement and acceptance. This site, designed for low- and medium-level radioactive waste, will soon begin to receive waste currently being held at Paks at a temporary location. The waste will be permanently stored in 200 meter deep tunnels carved in granite and encased in multiple layers of gravel, soil and cement. Hungarian officials had been approached by neighboring countries about storing their own radioactive waste, but GoH officials said the site was only for domestic requirements at this time. Regulatory climate in Hungary -------------- ¶6. (C) Ronaky described the NRC-HAEA relationship as strong, as evidenced by the visit of Chairman Klein and the multiple training and exchange visits conducted in recent years between the two countries. However, Ronaky noted maintaining the current capabilities of the HAEA staff was becoming increasingly difficult given the dearth of qualified young nuclear engineers and the pressure to defend current budget allocations. He said that most of the nuclear engineers and engineering professors were nearing retirement age like himself and that very few students were inspired to enter a field which does not have a high profile in ongoing domestic projects. The HAEA has made a significant effort to boost new hiring numbers but, given the pace of retirements, they barely manage to replace those who have left. ¶7. (U) Chairman Klein summarized his discussions with the HAEA during his meeting with Ambassador Foley on September ¶23. This cable was cleared by Chairman Klein. Foley