Hungary electricity production shifts toward renewables

Hungary's electricity generation structure is undergoing a significant transition. While nuclear power remains the backbone of the system, providing 40 percent of production in 2025 via the Paks Nuclear Power Plant, there is a growing reliance on renewable sources and a decreasing dependence on coal and other non-gas fossil fuels.

Solar energy has seen rapid expansion, with annual production increasing from 2,459 GWh in 2020 to 10,721 GWh in 2025, accounting for 27 percent of total generation. However, the lack of corresponding storage capacity development poses risks of price volatility and reduced efficiency. Wind energy remains low at 1.5 percent, though a government program aims to allocate at least 4,000 MW of new wind power grid connection capacity between 2026 and 2030.

Despite these shifts, Hungary remains heavily dependent on imports for electricity, natural gas, and oil, which continues to pressure the national current account. The 2022 energy crisis caused a significant deficit, with the energy balance deficit being 11.6 billion euros higher than in previous years, such as 2018.