Hungary faces energy security risks due to high imports and storage gaps

An analysis by GKI Gazdaságkutató Zrt highlights structural challenges in the Hungarian electricity market, noting that the country faces a persistent competitive disadvantage due to its production structure and grid limitations. Last year, 37 percent of Hungary’s electricity consumption was met through imports, often during peak hours when prices were at their highest.

While renewable energy, particularly solar power, has seen rapid growth—with annual production increasing more than fourfold since 2020—the share of wind energy has remained stagnant at approximately 1.5 percent since 2016. The government has pledged to allocate at least 4,000 MW of new wind capacity between 2026 and 2030, though significant contributions are not expected until the end of the decade.

The report emphasizes that transitioning to green energy alone will not resolve price and security issues. To ensure a stable and affordable supply, Hungary requires increased storage capacity, risk sharing, and the maintenance of nuclear capacity. Currently, nuclear energy accounts for roughly 40 percent of production, natural gas for 20 percent, and solar for 25 percent.