The International Energy Agency (IEA) has praised Hungary’s efforts and highlighted the need for more competition in the sector.
The country’s National Energy Strategy to 2030 aims to ensure a sustainable and secure energy sector while supporting the competitiveness of the economy.
The IEA says it was successful in developing wholesale markets for gas and electricity, which allowed for undistorted energy prices to increase efficiency and strengthen security.
The report also welcomes Hungary’s large investments in oil, electricity and natural gas infrastructure – the nation’s energy-related carbon dioxide emissions remain well below 2008 levels despite healthy industrial output.
It recommends the country to make greater use of market-based mechanisms in the energy sector, adopt more ambitious targets for emission reductions and move towards full retail market liberalisation.
In its report, the IEA also encourages the government to also emphasise other renewable energy sources such as solar and geothermal power in addition to bioenergy.
Dr Fatih Birol, the IEA’s Executive Director, said: “We applaud Hungary’s achievements in reducing the carbon intensity of its economy, building energy infrastructure and strengthening energy security, most notably via gas storage.
“Hungary has made progress in diversifying its energy supplies and increasing competition in the energy sector but there is still more to do on both fronts.”