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BBJ Editor-in-chief: Robin Marshall • Editor: Claudia Patricolo, Bence Gaál • Sales: Erika Törsök • Contributors: Annamária Bálint, Mihály Kovács • Lists: BBJ Research (research@bbj.hu) •
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Building on the momentum of our first Energy Review earlier this year, we are pleased to present an expanded and even more comprehensive look into the energy sector in Hungary and the broader region. The enthusiastic reception of the first issue confirmed what many of us suspected: there is a strong appetite for reliable, insightful, and nuanced coverage of the forces shaping energy markets, policy, and technology. The energy transition is not a distant concept; it is a daily reality that affects industry, politics, households, and investment decisions alike. With this edition, we have sought to deepen the conversation, spotlighting both the opportunities and the challenges that lie ahead.
This issue of Energy Review covers an array of critical themes. Among them is nuclear energy, where discussions no longer revolve solely around conventional large-scale power plants but increasingly around the potential of small modular reactors (SMRs). These emerging technologies have the promise to transform the landscape by offering flexible, scalable, and safer nuclear options that could play a key role in decarbonizing Europe’s energy mix. SMRs may be particularly relevant for smaller markets such as Hungary, where grid capacity and investment structures differ from those of larger economies. We explore not only the technological potential but also the regulatory frameworks, investment requirements, and public acceptance that will ultimately determine whether SMRs move from vision to reality.
We are also honored to feature an exclusive interview with Hungary’s Minister of Energy, who shares candid insights into the country’s current strategy, long-term vision, and the delicate balance between energy independence, affordability, and environmental responsibility.
Another highlight of this edition is our focus on geothermal energy, an often underappreciated resource that could significantly contribute
Hungary’s energy sector is undergoing rapid transformation, with solar now accounting for around a quarter of domestic electricity generation, new gas-fired plants under construction to ensure supply security, and growing emphasis on geothermal and storage solutions. At the same time, domestic oil and gas production is rising again, while innovation programs aim to turn Hungarian technologies into exportable solutions.
In June 2025, Hungary amended its Energy Efficiency Law to make the country use less energy and speed up building renovations, after 2024 ended up being a slow year in the construction sector. The biggest change regards energy distributors (those companies selling electricity, gas, or fuel), which, now, must help their customers in saving energy, thus stepping into the home renovation segment. Specifically, from 2026, these companies are required to reach energy savings equal to 1.4% of their annual energy sales.
Hungary’s power landscape is transforming at an unprecedented pace. From achieving full renewable coverage of domestic demand in 2025 to advancing nuclear and gas-based modernization projects, the country is redefining its energy mix for the decades ahead. In an interview with the Energy Review, László Fazekas, CFO of MVM Group, discusses the milestones shaping Hungary’s energy transition, the company’s regional expansion strategy, and how innovation in storage, nuclear, and renewables is positioning MVM as a cornerstone of Central Europe’s sustainable energy future.
By Bence Gaál
BBJ: Hungary’s power sector is undergoing rapid transformation. In 2025, renewables met 100% of domestic demand for the first time, while nuclear and coal continue to anchor the energy mix. To start the interview, which trends or milestones best reflect the sector’s current momentum? What developments do you believe hold the greatest potential for the future?
László Fazekas: We expect power consumption to grow at an accelerating pace, potentially with an average annual growth rate which is double the pre-2022 rate. This increase in demand mirrors trends in other European countries and means significant work for MVM Group in expanding regulated infrastructure and electricity generation.
We have seen continued growth in renewable capacity. In recent years, Hungary has experienced
a revolution and democratization of photovoltaic power generation. Today, there are more than 316,000 photovoltaic power plants in the country, including both householdand industrial-size systems. By 2024, 25% of Hungary’s power generation came from solar, placing the country on the first place in the whole world. More than 311,000 household systems are already in operation, mostly rooftop installations on family homes. This has been driven by state-sponsored schemes and has positioned Hungary as an advanced player in the energy transition.
Wind power has also recently become feasible, with the first new generation of turbines expected to be installed in 2029.
Nuclear will remain a cornerstone of the mix. Hungary’s only nuclear plant, located in Paks and operated by MVM, is the backbone of national power generation, producing nearly half of domestically generated electricity. A key undertaking for MVM is the lifetime extension of the plant’s four blocks, originally due to expire between 2032 and 2037. Government approval has already been secured
A key strategic target for us is portfolio diversification, particularly in supply sources. Hungary is landlocked, without direct access to coastal terminals, so securing diversified gas supply is essential.
As Hungary moves forward in the energy transition, the government is emphasizing a pragmatic path forward: one that balances decarbonization with competitiveness. Grounded in technological neutrality and economic realism, Hungary’s approach combines nuclear and renewable energy, a strengthened energy-efficiency framework, and growing momentum in the circular economy.
By Claudia Patricolo
“Today, the green and the digital transitions are simultaneously shaping the world, and both fundamentally form the basis of a modern economy,” said Csaba Gondola, State Secretary for Circular Economy and Climate Policy at the Hungarian Ministry of Energy. “Yet the essential question is not whether the transition is necessary, but how and at what pace it should take place. Our
position is clear: the transition must be wellordered rather than ideologically colored.”
To achieve the ambitious EU climate and energy targets ahead, Gondola mentioned three guiding principles: technological neutrality, cost-effectiveness, and respect for national specificities. “We also believe that environmental sustainability must go hand in hand with economic and social sustainability,” he added. “These are the cornerstones of Hungary’s energy strategy.”
He explained that Hungary’s pathway is based on the duality of nuclear and renewable energy, a combination that ensures both decarbonization and stability. Gondola recalled that the country has recorded one of the fastest solar-capacity growth rates in the world, now reaching 8.2 GW, with 4 GW added in just the past three years.
“Solar already covers around one-quarter of our electricity demand, placing us among the world’s leaders on a percapita basis,” he underlined. “On certain days, Hungary is already able to meet its entire daytime electricity demand from green, carbon-free sources, a remarkable milestone that demonstrates the pace and potential of our transition.”
But the more renewables are integrated, the more balancing capacity is needed. “Therefore, our top priority for the next three to five years is to expand system flexibility, through grid modernization, energy storage, and nuclear capacity, so that every new megawatt of green energy is not only produced but also reliably utilized,” Gondola pointed out. “Because ultimately, there is no sustainable climate policy without nuclear energy, and no credible transition without stability. Hungary’s approach is guided by realism: to decarbonize while protecting competitiveness and ensuring affordable, secure energy for our citizens. A wellordered transition must serve both the economy and the environment; this is what makes it truly sustainable in the long run.”
One step towards this direction is undoubtedly one that takes into account energy efficiency investments, which have found a renewed momentum after the recent reform of the Energy Efficiency Obligation Scheme (EKR).
“People often say that the best energy is the one we don’t consume,” noted
The first call of the Jedlik Ányos Energy Program was a major success among district heating providers, reported the Energy Ministry at the end of September. A total of 65 applications had been submitted, requesting HUF 73.6 billion in funding. The success was such that a following phase, whose application call was supposed to open at the end of the month, was cancelled, due to the exhaustion of the available HUF 45 bln budget. However, the ministry is examining the possibility of providing additional resources to meet the high demand.
By Claudia Patricolo
AGING BUILDINGS WITH UNTAPPED POTENTIAL
Indeed district heating is to play a crucial role in the modernization of the building sector, which accounts for a large share of Hungary’s energy use (around 40%) and emissions. The majority of the building stock was built before 1990 with low energy performance standards and, according to the country’s energy strategy, between 60-70% of it will need to be renovated to achieve the 2050 climate targets. This falls in line with a broader European trend, following the publication of the Renovation
Hungary’s business and industrial sectors are stepping up their energy efficiency commitments — from retrofitting buildings and digitalizing production to investing in renewable power and low-emission technologies. Yet the pace of transformation still trails Western Europe. Six leading executives — Matt Shen, general manager of CATL Europe and executive president of CATL Overseas Car Business; Levente Suba, head of Sustainability at K&H Group; Tomasz Lisiecki, CEO of TriGranit; Gergely Gál, CEO of Ganz Transformers and Electric Rotating Machines; Kata Mazsaroff, CEO of Colliers; and Noah Steinberg, chairman and CEO of WING — share how their sectors are improving energy performance, what incentives are driving change, and why clear regulation and market dynamics must go hand in hand to advance Hungary’s green transition.
Hungary’s renewable energy future hinges on stable regulation, improved grid capacity, and support for emerging technologies, according to experts from Andersen, PwC Hungary, and KPMG. In an exclusive Energy Review market talk, Gábor Matuss, partner at Andersen Adótanácsadó Zrt., Beáta Szoboszlai, director of the energy and utilities advisory team at PwC Hungary, and Géza Losonczy, associate partner and head of energy and utilities advisory services at KPMG Tanácsadó Kft., highlighted the need for predictable rules, stronger investment incentives, and EU-aligned grid modernization to secure long-term sustainability and energy independence.
Following the decision of tech giants like Google and Amazon to power their data centers with nuclear energy, the hype around Small Modular Reactors (SMRs) has grown significantly worldwide. Attila Aszódi, professor of the Institute of Nuclear Techniques of the Budapest University of Technology and Economics, explained how this global trend is translating into growing interest also in Hungary.
By Claudia Patricolo
He believes that a combination of factors has led to such a high level of interest, including the Russian-Ukrainian war and the resulting energy supply crisis, as well as the spike in natural gas prices, which have drawn the attention of many governments and market players to the need to reevaluate their previous positions on energy supply security.
“Another important factor is that climate change is no longer just a topic of debate among scientists and politicians, but its effects are also felt in our everyday lives, so it is clear to most people that the use of fossil fuels must be reduced,” he continued.
“Thirdly, both in Europe and North America, we are seeing that the construction of large nuclear power plants is taking a long time, which increases financing costs and project risks. A solution must be found to this problem, and SMRs offer the promise of much shorter construction times in the case of serial production.”
“The fact that relatively smaller companies are seeking venture capital or stock market financing to fund technological developments has clearly increased the visibility of these projects,” explained Aszódi, referring to the entry of big tech companies into this industry.
“Finally, I would highlight the phenomenon that smaller reactors appear to enjoy higher public support, which, if the global nuclear industry can capitalize on it, creates a new opportunity. After all, without political and public support, the long-term sustainability of the nuclear industry is unimaginable. We can observe the same trends in Hungary, where the dialogue on SMRs has unfolded and developed in parallel with global processes,” he added.
THE STATE OF SMR DEVELOPMENT
But, where do things currently stand worldwide with SMR development? Professor Aszódi recalled that last
In the following Energy Review Market Talk, Jens Bühler, CEO of MercedesBenz Manufacturing Hungary; Michael Breme, CEO of Audi Hungaria; and Diána Várkonyi, capital market relations hub lead at Magyar Telekom Group, shared how their companies are structuring decarbonization today. From carbon-neutral factories in Kecskemét and Győr to long-term power purchase agreements in telecoms, the three leaders detailed strategies, targets, and the regulatory shifts that could accelerate Hungary’s low-carbon transition.
LISTED IN ALPHABETICAL ORDER
COMPANY NAME WEBSITE
TOTAL NET REVENUE IN 2024 (HUF MLN)
OWBERSHIP: HUNGARIAN / NON-HUNGARIAN (%) TOP LOCAL EXECUTIVE ADDRESS PHONE E-MAIL
Energosun Investment Zrt. energosun hu 7,870 CLM Future Magántőkealap (100) –
Lanzo Kft. lanzo.hu 1,607 Individuals (100) –
Manitu Solar Kft. www.manitusolar.hu 2,758 Individuals (100) –
Movasol Energy Zrt. movasol.hu 4,253 A A
György Notheisz
Zoltán Kármán
Zoltán Jerebák, Norbert Nagy, Balázs Szolnoki
László Módos, Orsolya Márta Urbán, Gusztáv Varga
7300 Komló, Berek utca 18. (30) 731-4574 invest@energosun hu
2243 Kóka, Nagykátai út 19. (29) 628-110 ajanlat@lanzo.hu
1117 Budapest, Budafoki út 60. (1) 700-4050 nagyker@manitusolar.hu
1026 Budapest, Riadó utca 1-3. (20) 268-8914 info@movasol.hu