Hungary and nuclear power

Official Name: Republic of Hungary.

Summary: Hungary is heavily dependent on fossil fuel energy imports. Nuclear power is a key source of domestic energy production. Renewables development, however, has been needed for the country to meet the European Union's (EU) emissions goals.

Hungary, a central European country relatively poor in resources, is dependent on imported energy, which became increasingly obvious during the 1990s and early 2000s as the former Soviet satellite nation transitioned from a command economy to a free market economy. Securing energy was on the government's agenda even prior to the dissolution of the Soviet Union in 1991. Ambitious projects, such as the 1960s drive to provide all villages with electric power and the development of energy-intensive industry throughout five decades of communism, led to the decision to connect Hungary’s power system to those of neighboring countries. Along with increasing competitiveness and sustainability, the security of supply is among the highest priorities in Hungary’s energy policy in the 2020s.

Consumption and Production

Electricity consumption boomed under communism, from 11 terawatt-hours in 1965 to 37 terawatt-hours in 1987. Production covered an average of 80–90 percent of consumption until the early 1980s, when industrial consumption generated deficits of up to 7 terawatt-hours. Structural changes led, between 1993 and 2001, to a temporary decrease in energy demand, yielding an electricity surplus of up to 3.82 terawatt-hours. In 2007, Hungarian electricity consumption passed the previous peak that had been attained in 1987. By 2010, production leveled off at 37.37 terawatt-hours, while consumption climbed to 42.57 terawatt-hours. According to the International Energy Agency (IEA), in 2022, the country produced 35.69 terawatt-hours of electricity, while consumption was at 4.654 megawatt-hours per capita. That year, natural gas and oil made up about 64 percent of the primary energy supply, followed by nuclear energy, solid fuels, and renewables.

Natural Gas

Beginning in 1990, natural gas began replacing oil and solid fuels as the primary energy source, experiencing an increase in share of 31 percent by 2004; by 2022, it made up approximately 32 percent of total supply. As of 2010, Hungary had all but exhausted its proved domestic gas reserves, which had stood at over 3.5 trillion cubic feet in 1992. Consumption of 426 billion cubic feet of gas in 2010 far outpaced production of 101 billion cubic feet, driving the need for imports. In 2022, natural gas accounted for only 10.9 percent of Hungary's domestic energy production, according to the IEA. Hungary covers its natural gas deficit primarily through the Russian market; a direct connection is the Sojuz Gas Pipeline. In 2009, Hungary signed onto the proposed Nabucco Turkey-Austria pipeline, joining Romania, Bulgaria, Austria, Germany, and Turkey in a project intended as an alternative to Russian sources to bring gas from the Caspian Sea region to central Europe. In early 2012, however, the German partner indicated it might withdraw from Nabucco, which was still years away from construction. In April 2012, the big Hungarian oil and gas company MOL announced that it, too, was likely to withdraw. Uncertainties over competing pipelines and the extent of available gas supplies to be tapped for Nabucco were proximate causes. The following year, the project was canceled.

Insufficient storage, a lack of interconnections between countries, and an overall fragmented, inefficient, and insecure gas infrastructure and market in southeastern and parts of central Europe have drawn special attention from the EU. Transmission system operators from Hungary, Romania, Bosnia and Herzegovina, Slovenia, Austria, Croatia, Bulgaria, and Serbia were encouraged by the EU to coordinate efforts; together they formed the New European Transmission System project, addressing several of these issues and also aiming to harmonize energy policies, standardize regulatory frameworks, and contribute to a secure, competitive, and sustainable regional gas transmission network.

Oil

Like its natural gas reserves, Hungary drew down nearly all its remaining proved oil reserves—modest to begin with—between 1992 and 2010. The country consumed 156,000 barrels per day in 2009. Oil imports of 120,000 barrels per day in 2009 were secured mainly from the Russian Federation, reaching Hungary via the Druzhba (“Friendship”) II Pipeline. In 2022, Hungary was importing about 89 percent of its necessary oil, according to the IEA. The key energy service provider in Hungary is the MOL Group, formed in 1991 from nine different energy firms. Active in oil, gas, and petrochemicals, MOL also has various stakes in energy companies in Slovakia, Croatia, Italy, and other markets. It has conducted foreign exploration in such nations as Yemen, Kazakhstan, and Iran and has operated production facilities in Russia and Pakistan.

Nuclear Energy

Of its domestic production sources, nuclear power is arguably the most important. Data from the IEA showed that in 2022, nuclear energy comprised 38.6 percent of energy production in Hungary. The country’s only nuclear power plant, in the southern town of Paks, was built with Soviet help starting in 1967. Supplied by uranium mined nearby, the first of four reactors at Paks began generating in 1982; the plant is 100 percent state-owned. Total output capacity is 2,000 megawatts; by 2019, Paks was providing more than half of Hungary’s electricity. In light of Hungary’s growing energy demand, the parliament has extended each of the reactors’ operational lifetimes by 20 years; phaseout is now slated to begin in 2032. Construction of two additional reactors at the plant was also proposed, and in 2014, Russia agreed to help construct the new units, including funding; they were expected to be completed beginning in 2025.

Renewables

As of 2022, biofuels and waste accounted for 26.5 percent of Hungary's domestic energy production. Other forms of renewable energy, such as solar energy, wind power, and hydropower, played a limited role as of the same year, accounting for 6.6 percent of the country's domestic energy production.

Bibliography

"Hungary." CIA World Factbook, 2024, www.cia.gov/the-world-factbook/countries/hungary/. Accessed 2 Aug. 2024.

"Hungary." International Energy Agency, 2024, www.iea.org/countries/hungary. Accessed 2 Aug. 2024.

“Hungary: Energy and Power.” Nations Encyclopedia, www.nationsencyclopedia.com/Europe/Hungary-ENERGY-AND-POWER.html. Accessed 2 Aug. 2024.

Renewable Energy in the EU: Share of Renewables in Energy Consumption in the EU Still on the Rise to Almost 17% in 2015; Eleven Member States Already Achieved Their 2020 Targets. Eurostat, 14 Mar. 2017, ec.europa.eu/eurostat/documents/2995521/7905983/8-14032017-BP-EN.pdf/af8b4671-fb2a-477b-b7cf-d9a28cb8beea. Accessed 2 Aug. 2024.