Comprehensive analysis of the Hungarian energy market in the context of changing EU priorities

Abstract

Constantly changing geopolitical challenges and the European Union’s policy responses have a great impact on the development of the Hungarian energy market. Our study focuses on the development, transformation and emerging patterns of energy production and consumption. It scrutinizes these aspects in the context of the Union’s long-term climate and energy policy objectives and the specific challenges posed by the Russian-Ukrainian war. Additionally, the study highlights Hungary’s achievements in the field of energy security and sustainability.

This paper aims to provide a comprehensive picture of the Hungarian energy market in the context of energy market processes in the EU. The research draws upon the analysis of relevant domestic and EU energy policy legislation, along with the latest data from Eurostat and the Hungarian Central Statistical Office.

Our results show that the observed reductions in primary energy consumption and specific energy source imports are not solely attributed to enhanced energy efficiency. Instead, they are influenced by the economic downturn caused by the COVID-19 pandemic and strategic energy savings deployed to overcome challenges arising from the Russian-Ukrainian war. Therefore, achieving the ambitious new targets by the EU necessitates significant investments both within the EU as a whole and specifically in Hungary.