The National Energy Strategy, based on new foundations, will ensure the long-term sustainability, safety and economic competitiveness of Hungary’s energy supply. While serving our primary national interests, it guarantees the safety of supply, considers the principle of least cost, enforces environmental criteria and enables Hungary to contribute to the solving of global problems in line with its international weight and available resources.

Already approved by Parliament, the National Energy Strategy has the main objective to strengthen Hungary’s energy independence. The cornerstones of this effort include energy saving, renewable energy produced in a decentralised manner in Hungary, integration with Europe’s energy infrastructures, and nuclear power on which the electrification of road and rail traffic may be based. The fifth cornerstone is the creation of a dual-pole agriculture that will be able to flexibly switch between food, feed and renewable energy production with a view to enforcing both sustainability and market criteria. Besides, Hungary is not in a position to abandon fossil energy carriers either; in particular, natural gas purchased at fair prices will continue to play a major role, while the domestic coal and lignite stocks represent the strategic reserves of Hungary’s energy industry.

Developed for the next few decades, the National Energy Strategy is supplemented with other matching concepts, action plans and industry strategies to form a uniform strategic target system. The tasks contemplated in the resolution approved by Hungarian Parliament include the compilation of Action Plans for the Development of Power Plants, for the Management and Utilisation of Mineral Resources, for Public Awareness, for the Development of Energy Research and Industry and for District Heating Development.

The elaboration of all five Action Plans will be started in parallel by the Ministry of National Development. Just like in the case of the National Energy Strategy, the Ministry places a great emphasis on extensive technical reconciliations and, therefore, wishes to include in the preparatory works a wide range of consultants and players representing the government, the industry and the society. The first draft of the Action Plans is expected to be completed by the spring of 2012.

Although Hungary’s electricity generation capacity is sufficient at the moment, numerous old, obsolete and inefficient power plants will have to be replaced in the future. This process must take place along the lines of a long-term concept in accordance with the Action Plan for the Development of Power Plants. According to strategic efforts, electricity generation may be based, at least in part, on the stock of fossil energy carriers available in Hungary. The Action Plan for the Management and Utilisation of Mineral Resources will specify a schedule for the survey and reassessment of Hungary’s mineral resources and the options of their utilisation in compliance with the requirement of environmental sustainability. The Action Plan for the Development of Energy Research and Industry will identify the special areas of energy management where Hungary can internationally benefit from its skills and capabilities and make a survey of the partners that can be involved in potential cooperation arrangements. Based on the technical grounds laid down in the Act on the Amendment of Certain Acts Related to District Heating Services, approved by Hungarian Parliament a week ago, the Action Plan for District Heating Development – intended for the achievement of energy policy objectives and the efficient improvement of the district heating sector – will provide for the identification of user demands that can be profitably met and for a coordination between the available facilities and proposed improvements. Furthermore, an Action Plan for Public Awareness will be developed in order to increase the public acceptance of energy saving and energy efficiency.

According to the government’s view, it is a major task also in the energy industry to rebuild the state’s positions that have been given up in former years as a result of short-sighted budget considerations or even less evident and transparent reasons. The strategic objectives – including, in particular, the supply of energy at affordable prices to the public – may be achieved only through a reinforcement of the state’s role.

The government is planning to set up a new public system of energy institutions and tools that will be transparent, accountable and in line with EU legislation, ensuring a predictable environment for investors and taking into consideration consumers’ interests as well. According to the Energy Strategy, the system of institutions required is part of the EU energy supply and policy, but within that, it is also able to efficiently enforce national interests.

Please be informed that the English version of the National Energy Strategy is currently under translation. Thank you for your understanding.

(Ministry of National Development , Department of Communication)