Hungary targets wind energy expansion to lower electricity costs

The Hungarian government is initiating a radical transformation of its energy system to reduce dependence on energy imports and lower high electricity costs for businesses and households. Deputy Minister of Energy András Tóth announced a strategic shift toward wind power, aiming to increase installed wind capacity to 4 GW by 2030 and potentially exceeding 6 GW by 2040. This move marks a departure from previous policies that focused primarily on solar energy.

To achieve energy autonomy, the plan includes developing at least 3 GW of energy storage capacity by 2028. This is intended to address the issue of exporting cheap solar energy during the day and importing expensive electricity at night. The government also intends to extend the operation of the Paks nuclear power plant and strengthen carbon-free production.

These reforms are driven by the need to improve national competitiveness and align with upcoming European Union directives regarding Russian gas imports. Additionally, the energy transition supports fiscal goals to reduce the national budget deficit to 3% of GDP by 2030, a necessary step for potential Eurozone accession. However, economic challenges remain, including a decline in investment rates and high vulnerability to geopolitical shocks, as the country currently imports over 80% of its energy resources.