Hungary took a major step in the right direction with its National Energy
Strategy to 2030, which was published in 2011. The country must now make
greater use of market-based mechanisms in the energy sector to meet its goals,
according to the International Energy Agency's
latest assessment of Hungary's energy
policies.
The main
objective of Hungary's energy strategy is to ensure a sustainable and secure
energy sector while supporting the competitiveness of the economy. The IEA
encourages the government to develop appropriate mechanisms to make sure
Hungary can deliver on its ambitious goals.
"We
applaud Hungary's achievements in reducing the carbon intensity of its economy,
building energy infrastructure and strengthening energy security, most notably
via gas storage," said Dr Fatih Birol, the IEA's Executive Director.
"Hungary has made progress in diversifying its energy supplies and
increasing competition in the energy sector, but there is still more to do on
both fronts."
Energy-related
carbon dioxide emissions remain well below their 2008 levels despite the
healthy recovery of industrial output. Still, the IEA encourages the government
to adopt more ambitious targets for emission reductions. The IEA report also
welcomes the government's efforts to strengthen energy security and commends
its large investments in oil, electricity and natural gas infrastructure.
Additional infrastructure investments are expected, most notably the
construction of two new nuclear power generating units.
The IEA
report highlights Hungary's success in developing wholesale markets for gas and
electricity and emphasises that undistorted energy prices enable markets to
work efficiently and strengthen energy security. It recommends the development
of a programme for the gradual implementation of full retail market
liberalisation, while continuing to protect vulnerable consumers.
While
renewable energy production in Hungary has increased significantly in the last
decade, its growth has slowed in recent years. Recent reforms and the
introduction of a new support system for electricity from renewable sources
could arrest this slowdown. The IEA encourages the government to also emphasize
other renewable energy sources such as solar and geothermal in addition to
bioenergy.
In a
bilateral meeting with Prime Minister Viktor Orbán prior to the launch of the
IEA report, Dr. Birol discussed global energy security and IEA modernisation.
He underscored the importance of greater energy-supply diversification among
the IEA's key recommendations.
Download the report here.