Challenges in the Hungarian Electricity System

Nuclear energy is the backbone of Hungarian electricity generation, while the generation mix is increasingly shifting towards renewables, and the weight of coal and other non-gas fossil sources is gradually declining, a new study by the GKI Economic Research Co. finds.

In 2025, the largest producer was the Paks Nuclear Power Plant, with 40% of generation, while gas-fired power plants accounted for 20% of generation. In recent years, solar energy has been the fastest-growing source: its annual output more than quadrupled, from 2,459 gigawatt hours in 2020 to 10,721 gigawatt hours in 2025, and by 2025 it already accounted for 27% of total generation.

However, the rapid expansion has not been matched by the build-out of storage capacity, which may lead to strong price fluctuations and may reduce the efficiency of solar power. The share of wind energy was a mere 1.5% in 2025, as installed capacity has not changed significantly since 2016.

Under the program announced by the government in 2026, at least 4,000 MW of new grid connection capacity for wind farms will be allocated in tenders between 2026 and 2030. Based on the connection deadlines of the first, 700 MW round, however, a meaningful increase in the share of wind energy is expected only from the end of the decade.

Broader diversification is important in the case of renewables, as the predominance of solar power among renewables makes generation more volatile. One response to this is the government’s 4,000 MW wind energy programme. According to some studies, combining wind and solar power plants significantly improves their overall efficiency; however, alongside wind energy, it would also be important to build adequate storage capacity to ease the increasingly costly import needs arising from the mismatch between erratic renewable generation and consumption patterns.

As electrification progresses, electricity consumption is expected to rise further, and this additional demand will also have to be met. For long-term self-sufficiency, therefore, nuclear and gas-fired power plants may continue to play an important role alongside renewables in the future.