A law ratified by Parliament in 2003 aims to end the monopolies, enable the privatisation of gas import and export activities and liberalise the access to storage and distribution infrastructures.
According to the EU Directive on the promotion of the use of energy from renewable source, the national target of Hungary is to reach a share of renewables in final energy consumption of 13% by 2020. Hungary rose this target to 14,65% as a consequence of the adoption of the adoption of the National Renewable Energy Action Plan 2010-2020 (May 2011). It is intended that renewables account for 10% of transport consumption, 10,9% of electricity consumption and 18,9% of heating conumption by 2020.
The Law on Electricity Production, Transportation and Supply was released in 2001, stating that electricity produced from renewables by a facility with an installed capacity of over 100 kW and connected to the grid has to be purchased by th regional electricity supplier or by the electricity provider.
The electricity market is open for competition to all consumers, for large consumers (>6,5 GWh/year) sincd 2003, to professional consumers since 2004, and to all consumers since 2007.
Privatisation of power plants, suppliers and distribution companies started in 1995. As a consequence the national electricity company MVM lost its monopoly on electricity imports and exports.
The Hungarian day-ahead power market was introduced in 2010. In 2012 a market coupling started with the Czech, Slovak and Hungarian markets that was joined in 2014 by the Romanian market.
The Hungarian government also opened the gas market and is making efforts to prevent energy control by foreign companies.
Last Update February 2018