Hungary will invest €16bn to boost power production and reduce gas imports

7 Sep 2022

According to the Hungarian Ministry of Technology and Industry, Hungary plans to invest €16bn by 2030 to boost electricity production and storage capacity in the country, in order to reduce its dependence on gas imports. To this end, the Ministry has set several goals, including:

  • Reducing the need for natural gas in total consumption (from 32% in 2020 to 26% by 2030 and 15% in 2050).
  • Increasing the share of alternative energy sources (notably by reaching 8 GW of solar capacity by 2024 and up to 14 GW by 2030, as well as extending the lifetime of the 2 GW Paks nuclear plant by 20 years).
  • Developing the power grid and energy storage capacities.
  • Increasing electricity demand and flexible service.
  • Phasing out of lignite combustion at the 950 MW Mátra Power Plant by 2025.

In July 2022, the Hungarian government also scrapped a years-long cap on utility prices for higher-usage households, which is expected to contribute to a decline in retail gas consumption.

Most of Hungary’s gas supply come from Russia (79% in 2019). Under a deal signed in 2021 with Russia, Hungary receives 3.5 bcm/year of gas via Bulgaria and Serbia and a further 1 bcm/year via a pipeline from Austria. Its agreement with Gazprom is set to last 15 years.

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