Hungary's gas consumption must be cut drastically, major investments are needed - Palkovics

Average temperatures are rising and precipitation patterns are changing, which we are already seeing signs of today. At the beginning of 2020, the government adopted a report on climate change in the Carpathian Basin to ensure that this region remains liveable. The findings show that various interventions are required in the fields of water management, forestry, agriculture, as well as security, health and energy management.

In the context of energy targets, the 55% greenhouse gas reduction by 2030 is easily achievable, but the 2050 climate neutral target will be more difficult to attain.

To achieve these, the right technology is needed. We now have 9+1 technology platforms, many of which deal with energy, climate and environment, the latest being the creation of the Circular Economy Technology Platform.

Sustainability goals of the government's climate and energy policy

Hungary was the first in the region to enact climate neutrality targets in 2020. These are both emission reduction targets and energy targets. Three National Green Strategies were adopted in 2021: a National Hydrogen Strategy, a National Battery Strategy and a National Clean Development Strategy.

Hungary is also doing well internationally on climate protection, and the country's legislation is well placed to do so. Since 1990, the country's carbon dioxide emissions have fallen by 34%, mainly due to reductions in energy supply, industry and agriculture, but this has not yet been achieved in transport.

The country's energy transition strategy from gas to electricity

Natural gas accounts for 35-40% of Hungary's final energy consumption, oil for 28%. The question is how to reduce the current energy dependence. It is not easy to steer the country towards electricity, because so far everything has been determined by natural gas, which is a practical and easily transportable energy source. The 35-40% share of natural gas needs to be reduced in order to lower dependency [on Russian gas], but transforming domestic heating will require extensive work, and the government will soon adopt an energy strategy.

This SHOULD create the unity of EFFICIENCY, SUSTAINABILITY, and security of supply,

but energy security now overrides sustainability in many countries. Nevertheless, the phasing out of lignite coal burning at the Mátra Power Plant in 2025 remains a priority, with the following targets:

• reducing the demand for natural gas in the energy mix
• increasing the share of alternative energy sources
• meeting growing electricity demand flexibly

By 2030, the target was 6 gigawatts of solar capacity, and we will achieve this, as 8 gigawatts of domestic capacity will be reached in 2024. In addition, domestic gas production needs to be boosted, biogas could be further strengthened and the development of electricity grids is also badly needed.

By 2050, a much higher share of electricity - around 45% - will be needed, while the current 35-40% share of gas will have to be reduced to 15%.

This will require electricity and gas projects, representing an investment of around €16 billion by 2030. This includes the extension of the lifespan of the Paks nuclear power plant by around 20 years (building two new blocks - Paks II - is a separate task), the development of other gas power plants with a capacity of 1.5 gigawatts: for example, the Mátra and Tisza power plants, which will also be able to run on hydrogen, but also the complete transformation of the Hungarian electricity grid, the development of storage capacities and their integration into the system, as well as the support of energy communities and the promotion of synthetic fuels.

Cover photo: Ákos Stiller