Energy

2.9

Energy consumption in Hungary is decreasing slightly. Energy intensity levels are improving somewhat, but energy dependence remains high. Renewable energy production shows virtually no development at all, as the government consciously engages in a set of measures to thwart its growth, while immersed in crazed plans of constructing nuclear power plants. So we are missing out on the energy revolution taking place in the rest of world.

3.5

Energy production

The share of renewables in the Hungarian energy mix is only growing slowly. The share of natural gas is declining, that of nuclear energy is growing.

3.0

Primer energy consumption

Primary energy consumption in Hungary decreases from year to year. This improvement is greater than the improvement in the EU average or in the Visegrad countries (92-93). At the same time one could object that this improvement might strongly be related to a „forced” decrease in energy consumption (which was much less manifest in both the entirety of the EU and the average of the V4 countries).

4.0

Final energy consumption

The picture seems positive when considering the development of either final energy consumption or primary energy consumption. Compared to the year 2005, the basis year for the measurement of energy efficiency – taking the 2005 energy consumption values as 100 – the level of final energy consumption in Hungary fell to 80.9 by 2012, with the primary energy consumption dropping to 84.6 by the same year. This improvement even greater than both the EU average and the average values in the region of 92 to 93 registered in the Visegrad countries. It could be argued, however, that this improvement has been strongly dependent on the forced reduction in consumption in Hungary (which was far less pronounced on the level of the EU as a whole, or indeed in the V4 average).

2.0

Renewable energy production

The use of renewable energy sources is very low in Hungary. We are only slowly approach the target, and there is a considerable delay compared to neighbouring countries as well. In fact, it is only the production rate of biomass-based energy that is significant, the use of other energy resources is minimal. The government seems to be expressly blocking the exploitation of the country’s solar and wind power generating potential, obviously due to the construction of the new nuclear power plant blocks.

2.0

Energy intensity

Though showing some improvement, the energy intensity of the Hungarian economy is still quite low; we are unable to catch up with the EU average levels.

3.0

Energy dependency

Energy dependence has decreased, but still very high. Electricity imports are still growing at an alarming rate, which will cause serious problems when world market prices for electricity rise.

2.0

Subvention of efficient energy use

Proportionally to the funds of Priority 5 of the EEOP (Environment and Energy Operative Programme, "KEOP" in Hungarian), the number of grants awarded grew rapidly until 2010, while the large number grant proposals submitted clearly indicated the demand exceeded the proposed framework by several orders of magnitude. However, instead of the adapting to these needs, the years 2011-2012 were largely characterised by hesitation, which, over and beyond the lack of financial resources, was also due to administrative reasons. Based on these facts, the Hungarian performance in the field of Promoting efficient energy consumption only deserves a grade of 2 („sufficient”).

2.5

Energy in transportation

The energy use and environmental impact of transportation could not be meaningfully reduced in recent decades, and this is also true of the reference countries. The share of renewables is increasing, but is still very low.