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Energy policy – Energy Country Profile

Energy Policy

Hungary’s new energy strategy, the National Energy Strategy to 2030, published in 2012, was a major step in formulating a long-term vision for government policy in the sector. The main objective of the strategy was to ensure a sustainable and secure energy sector while supporting the competitiveness of the economy.

Mindful of high energy costs and their impact on family incomes, the government initiated a policy of mandatory price cuts to reduce household energy bills. While the short-term impact has been a reduction in energy bills, in the long term, this policy may damage national competitiveness. Renewable energy production has increased significantly in the last decade but growth in the sector has slowed. Recent reforms and the introduction of a new support system for electricity from renewable sources could arrest this slowdown. On the other hand, measures that limit wind power developments are likely to have a negative impact on the sector.

Greenhouse gas emissions have declined as the economy has become less carbon-intensive. Nonetheless, the country could adopt more ambitious targets for emission reductions. Energy security has been strengthened and there have been a number of large investments in oil, electricity and natural gas infrastructure. Further investments are expected, notably the construction of two new nuclear power generating units.

Hungary sets the security of supply in the center of its 2012 National Energy Strategy. Hungary builds on saving energy especially in the sectors power and buildings and on strengthening supply by developing renewable sources and domestic fuel resources. Further objectives are decarbonisation of transport, energy efficiency in industry and capacity building through educational programmes. 

Total primary energy savings should reach 189 PJ by 2030, according to the Energy Strategy by 2030. Of th 189 PJ saving target by 2030, 59% are expected to be achieved in the building sector (retrofitting of residential and industrial buildings), 32% by replacing gas fired power plants (20%) and coal-fired power plants (12%), 6% through the reduction of grid losses and 3% by replacing renewables with a low efficiency.

Hungary's energy supply presently is dominated by nuclear and gas. The country relies on energy imports, mainly from Russia.

Last update: 09 2019