In recent years, Hungary has taken substantial steps toward transforming its economy into a greener oneBy actively raising its targets, Hungary aims to increase the share of renewable energy in its energy consumption structure from 21% to 29% by 2030. This ambitious goal is spearheaded by multiple sectors working together to facilitate adjustments in both energy and economic structures.

A significant initiative includes the reduction of groundwater extraction and the promotion of sustainable water resource managementHungary's water resources are composed of various elements: 35% derived from groundwater, another 35% from rivers, 25% from karst caverns, and only 5% from surface waterProtecting these resources has become a priority; the government has shifted its focus from disaster prevention to effective water resource management over the past decadeIn an unprecedented investment totaling over 1 trillion Hungarian forints, efforts have concentrated on ensuring every household has access to clean drinking water while achieving a wastewater treatment rate exceeding 80%—one of the highest in Central and Eastern Europe

Plans for 2024 include an additional investment of approximately 200 billion forints (around $40 million USD) into water management, with a notable 100 billion forints earmarked for the renovation and construction of water stations along the Danube RiverThis will not only conserve water resources but also enhance the energy efficiency of production equipment through the adoption of new technologiesA solar power plant is also set to be installed to meet part of the electric needs for regional water supply networks.

At the same time, Hungary is increasing the installed capacity of solar power plants, thus augmenting the proportion of green energy in its energy supplyBy the first half of 2024, the total capacity of industrial-scale solar plants and residential solar power generation has surpassed 6,000 megawattsThe Hungarian Ministry of Energy reported that solar capacity has increased by over 1 gigawatt in the past two years, positioning Hungary ahead of many other countries in this sector

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Between 2010 and 2022, solar capacity rose dramatically from just 2 megawatts to 4,235 megawattsDue to strong growth in recent years, the total installed capacity reached 6 gigawatts by the spring of 2024, achieving the 2030 target six years early.

Nuclear energy already accounts for half of Hungary’s total electricity generation, but the country aims to further boost the share of green energy while significantly expanding its energy storage capabilities across residential, industrial, and transportation sectorsA key government initiative, the "Solar+ Plan," is set to invest 230 billion forints to provide families with financial support of up to 5 million forints each for purchasing solar panels and storage devicesThis program will assist over 25,000 households by covering more than two-thirds of the investment costs while enhancing their self-sufficiency in electricity usage and alleviating their electricity expenses

Recent statistics indicate that over 270,000 household-sized solar power plants are already in operation, and the "Solar+" initiative could increase this number by approximately 10%.

Geothermal energy development is another area where Hungary is making strides, utilizing local advantages to expand its green energy portfolioThe country, situated in the Carpathian Basin, benefits from geological conditions conducive to geothermal energy extraction, with the crust depth significantly less than the European averageFor several years, Hungary has consistently ranked among the top five European countries in direct geothermal energy utilizationThe national geothermal strategy aims to increase the share of geothermal energy in total thermal energy supply from the current approximately 6.5% to between 25% and 30% by 2035. This increase could replace 1 to 1.2 billion cubic meters of natural gas, reducing import dependence and enhancing energy autonomy

Financial support totaling 165 billion forints will be allocated to encourage geothermal resource development, including 34 billion forints specifically aimed at subsidizing early-stage exploration risks such as geological drilling.

Since 2010, a flexible permitting system and the establishment of geothermal clusters, coupled with national incentives, have quadrupled Hungary's geothermal outputHowever, there remains significant untapped potential for further development.

The Hungarian government is also implementing a subsidy program for home renovations aimed at achieving energy efficiency goalsA 108 billion forint home improvement initiative is underway to streamline application processes, allowing for online submission of proposalsThis financial backing targets the modernization of residential properties, particularly focusing on houses built before December 31, 1990 and includes the installation of air-source and water-source heat pumps and high-performance insulation materials

The goal is an energy savings target of at least 30% through such renovations, with over 6,300 energy efficiency certificates issued for compliant residences.

To promote the use of electric vehicles, Hungary is expanding its network of charging stations, particularly in rural areasUnder a national recovery plan, specific support has been allocated for the electric vehicle sector to establish the infrastructure needed for zero-emission transportationAs part of this initiative, businesses with charging station operation licenses can apply for low-interest loans ranging from 100 million to 6 billion forints for the establishment of charging stations in underserved areasAdditionally, the government intends to provide 28 billion forints in subsidies to incentivize the creation of over 100 new public charging stations outside the capital, Budapest, and calls for modernization of these stations equipped with solar panels and storage devices.

The government emphasizes priority projects for charging networks, particularly those utilizing renewable energy sources or equipped with storage capabilities

Stations situated along the Trans-European Transport Network (TEN-T) or domestic highways that cater to heavy vehicles receive particular support, along with requirements that all charging points be capable of smart charging and electronic payment options.

Despite various measures being put in place to expedite the transition to a green economy, three key relationships pose challenges that need to be addressed for further development:

First is the relationship between unity and individualityGeothermal energy exemplifies this tension; according to EU policy, the contribution of solar and geothermal energy to energy structures should triple to meet joint energy and climate goalsHowever, the reality is that EU member states have inconsistently implemented these policies, with over 60% reliance on primary energy usage and geothermal energy seeing less than 1% utilization across the EU

Hungary's ambitious geothermal development requires financial backing from the EU.

The second relationship is between generation and storageSolar energy, for instance, is highly dependent on weather conditions—generating peaks during sunny periods but lacking power supply during night-timeCommon international practice employs pumped storage hydroelectric power plants to balance the natural fluctuations in energy productionWhile actively developing solar energy, Hungary has also prioritized the construction of such storage facilities to achieve a balanced approach toward green energy generation and storage.

The third relationship pertains to production and recyclingHungary has made remarkable progress in power battery production, establishing a robust domestic capacity, with battery and component exports accounting for over 5% of the nation’s GDPHowever, the recycling of batteries and recovery of valuable materials remains a sector that Hungary, along with the entire European landscape, has largely neglected