Hungary’s Ministry of Energy published the impact study of the National Energy and Climate Plan (NECP) for public consultation, according to bne IntelliNews.
The final version of the draft, prepared in summer 2023, will be presented in autumn 2024 after receiving feedback from the European Commission. The NECP aims to strengthen Hungary’s energy sovereignty and security of supply.
The project now targets to reduce greenhouse gas (GHG) emissions by at least 50 per cent by 2030. This is a 40 per-cent increase compared to 1990 level.
Hungary also aims to increase the share of renewable energy in its energy mix from 21 per cent to 29 per cent. The four units of Hungary’s only nuclear power plant (NPP) in Paks currently operate at 2,000 MW and produce 40 per cent of the country’s electricity needs.
Budapest will increase the share of so-called first-generation biofuels produced from food and feed crops to almost 4% by 2030. To achieve the NECP targets, investments of several thousand billion forints would be needed, the ministry stated.
However, since Hungary failed to fulfil the criteria set by the European Commission, the latter denied the government funding. Time is running out, as an agreement must be reached before the end of the year in order not to lose these funds. Hungary is eligible for €6.5bn in grants from the RRF, including €4.6bn allocated under the REPowerEU plan.
In a separate report, the ministry said GHG emissions fell by 9.5 per cent last year and were 43 per cent lower than in 1990. The main reason for this was the collapse of heavy industry in the early 1990s.
Reducing the country’s dependence on imports has been a priority for the government since the energy crisis. A spike in oil and gas prices worsened the country’s trade balance by almost €10bn in 2022 and led to a currency crisis. Moreover, the country is facing new energy crises caused by the Ukrainian government’s decision to cut the Druzhba oil pipeline.
The public can comment on the impact study until 22 September.
