National Economy
The European country of Hungary is bordered by Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia, and Austria. The population of Hungary is approximately 9.59 million people[1].
In 2022, Hungary’s economy was ranked 56th in the world in gross domestic product (GDP)[2]. The country’s economy[3] is dependent on the export of cars, motor vehicle parts, electric batteries, video monitors, and packaged medicaments.
Environmental Policies
In 2009, Hungary as a member of the European Union (EU) committed to the “Renewable Energy Directive,” which requires each country to use renewable energy for 27% of its total energy needs by 2030.
In 2016, Hungary as a member of the EU signed the “Paris Climate Agreement”[4]. The EU committed to a 40% reduction in greenhouse gas emission by 2030 compared to 1990 levels.
Power Generation Capabilities
In 2020, 100% of the people in Hungary had access to electricity[5]. In 2022, utilities used nuclear energy (44.6%), natural gas (24.9%), renewable energy (21.2%), coal (8.2%), and oil (1.1%) to generate electricity in Hungary[6]. Solar and biomass are the dominant types of renewable energy used to generate electricity in Hungary.
Recent renewable energy projects in Hungary include:
- 233 MW Solar Project – In June 2023, Hungary-based company PolSolar commissioned the Mezőcsát solar project at a site approximately 75 miles northeast of the nation’s capital,
- 51 MW Solar Project – In February 2023, state-owned energy company MOL Energy Trading commissioned the Gerjen Solar Parkproject at a site approximately 60 miles south of
- 45 MW Solar Project – In February 2023, state-owned energy company MOL Energy Trading commissioned the Kabai Solar Park project at a site approximately 70 miles east of Budapest.
- 3 MW Solar Project – In 2021, Dutch solar company Photon Energy commissioned a solar project approximately 80 miles south of Budapest.
Conclusions
Hungary imports fossil fuels (coal, oil, and natural gas) for power generation, heating, and transportation. In 2021, Hungary imported approximately 85% of its natural gas and 65% of its oil from Russia.
On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices increased by over 50% from May 2021 to May 2022.
Hungary has significant renewable energy resource potential including solar, geothermal, biomass, and wind. Hungary is now accelerating the development of new renewable energy projects to achieve energy security from Russian fossil free imports.
Jack Kerfoot
Website – “Our Energy Conundrum”
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on a diverse range of energy issues.
[1] Hungary Population (2023) – June 12, 2023, www.worldometers.info
[2] Gross Domestic Product By Country 2022 – Worldometer
[3] The Observatory of Economic Complexity (OEC) – Hungary
[4] Carbon Brief – “2015: Tracking Country Climate Pledges”
[5] World Bank, “Access To Electricity (% Population) – Hungary
[6] Our World In Data, Kingdom of Hungary: Energy Country Profile by Hanna Ritchie and Max Roser