Energy Policies of IEA Countries: Hungary 2006

HUNGARY 2006 REVIEW

Executive Summary and Key Recommendations

• Executive Summary: The review focuses on Hungary's energy policies, highlighting key areas for improvement.
• Key Recommendations:
  • Enhance energy efficiency and promote cogeneration (CHP).
  • Strengthen environmental policies, particularly in climate change and local air pollution.
  • Improve electricity infrastructure and market structures.
  • Increase investment in renewable energy sources.
  • Develop a robust R&D strategy.

General Energy Policy

• Country Overview: Hungary is an IEA member country, emphasizing the need for rational energy policies.
• Supply and Demand Balance: The country faces challenges in balancing supply and demand, especially with its aging power plants.
• Energy Policy Institutions: The existing institutions need to be strengthened to support these policies.
• Energy Market Structure and Regulation: Current market structures and regulations need to be reviewed to ensure fair competition and efficient operations.
• Energy Statistics and Forecasts: Detailed statistical data and forecasts are provided to guide future policy decisions.

Energy Efficiency, CHP, and Transport

• Overview: Hungary has made progress in energy efficiency but needs to enhance programs and policies.
• Current Status: Existing energy efficiency measures are evaluated, with recommendations for improvements.
• Critique and Recommendations: Focus on improving energy efficiency in buildings and transportation sectors.

Energy and the Environment

• Climate Change: Hungary needs to develop more ambitious climate change mitigation strategies.
• Local Air Pollution: Addressing local air pollution remains a critical issue, requiring stricter emission controls.
• Critique and Recommendations: Emphasize the importance of reducing greenhouse gas emissions and improving air quality.

Electricity and Nuclear

• Electricity: The electricity sector is analyzed, focusing on infrastructure, market structures, and pricing.
• Nuclear: The nuclear sector is reviewed, including plant history, future plans, and regulatory issues.
• Critique and Recommendations: Enhance transparency and safety in the nuclear sector.

Renewables

• Overview: Renewable energy sources are discussed, with a focus on their current state and potential for growth.
• Critique and Recommendations: Increase investment and policy support for renewable energy projects.

Fossil Fuels

• Natural Gas: The natural gas sector is examined, covering supply, demand, infrastructure, and market structures.
• Oil: Oil exploration and production, market structures, and infrastructure are reviewed.
• Coal: Coal resources, supply, demand, and government support are analyzed.
• Critique and Recommendations: Improve resource management and reduce dependence on fossil fuels.

Energy Research and Development

• R&D Strategy: The current R&D strategy and skill base are assessed.
• Implementation Structure: The implementation structure for R&D is reviewed.
• Funding: Funding mechanisms for R&D are discussed.
• Critique and Recommendations: Enhance R&D funding and support innovation.

Annexes

• Organization of the Review: Criteria, team, and visited organizations are detailed.
• Energy Balances and Key Statistical Data: Comprehensive statistical data and energy balances are provided.

Tables and Figures

• Key Tables and Figures: Detailed tables and figures cover various aspects of Hungary's energy sector, including economic indicators, energy consumption, efficiency, emissions, and market structures.