Hungary’s transition toward sustainable transportation continues to gain traction with its EV initiatives. The number of battery electric vehicles (BEVs) in the country surpassed 70,000 last year, reflecting its commitment to increasing green mobility adoption. In 2024 alone, nearly 22,000 BEVs were registered, with more than 20,000 of those being passenger cars.
To support this growth, the Hungarian government has allocated HUF 60 billion for electromobility programs, including subsidies for EV purchases and the expansion of charging infrastructure.
One of the most notable programs, funded under the European Union’s REPowerEU initiative, has received some 4,700-plus applications from businesses. These applications collectively requested HUF 21.5 bln to support the purchase of more than 5,500 EVs. Popular brands among applicants include BYD, leading with 1,350 vehicles, followed by Tesla, with 860, and Volvo, with close to 430. Subsidies range from HUF 2.8 million to HUF 4 mln per vehicle, depending on battery capacity. This program will run until March 2025.
In parallel with these developments, Hungary’s battery industry has emerged as a key player in Europe. With a lithium-ion production capacity of 40-42 gigawatt-hours, Hungary ranks among the top three EU member states, following Poland, which leads with 85-95 gigawatt-hours, and Germany (55-60 gigawatt-hours). The country’s green industry is also highly competitive in producing components for heat pumps, which are used to harness geothermal energy.
Minister of Energy Affairs Csaba Lantos emphasized to business daily Világgazdaság [Global Economy] the continued need for innovation and infrastructure development to support Hungary’s rapidly expanding solar energy sector. The country’s installed solar capacity has already surpassed 7.5 GW, significantly outpacing projections, and is on track to achieve 12 GW by 2030.
To accelerate this momentum, the government introduced the Solar Energy Plus program. This year-long initiative attracted over 23,000 applications and distributed HUF 96.4 bln in subsidies. The program supported the installation of solar panels with a combined capacity of 27.6 MW and battery systems totaling 44.8 MW. Eligible households could receive up to HUF 5 mln in support, covering two-thirds of the investment cost. By the program’s end on Jan. 15, 2025, more than HUF 85 bln in subsidies were approved, and HUF 18.8 bln had been disbursed to successful applicants.
Building on these efforts, the government is preparing new solar tenders to further boost renewable energy development. According to Lantos, these tenders will focus on advancing solar and battery storage capacities while addressing grid-related challenges. The goal is to support both residential and industrial stakeholders in adopting sustainable energy technologies.
These initiatives will also align with Hungary’s broader commitment to achieving its climate goals and securing a leading role in the European green energy transition, the minister said.
Hungary’s commitment to solar energy is also evident in its collaborative efforts beyond its borders. The construction of Europe’s largest solar park on the Hungary-Romania border officially began following the issuance of all necessary permits on Jan. 9. Located in the municipalities of Graniceri (known to Hungarians as Ottlaka) and Pilu (which Hungarians call Nagypél), this cross-border project, developed in partnership with Monsson Trading, represents a milestone in renewable energy initiatives.
Once completed, the solar park will span over hundreds of hectares and is expected to generate enough electricity to power tens of thousands of households annually, significantly enhancing energy output in the region and contributing to both countries’ renewable energy goals.
Yet, despite the cross-border collaboration, Hungary’s energy relationship with Romania has its issues. Hungarian state-owned energy group MVM placed a bid to acquire E.ON Energie Romania, one of Romania’s largest energy providers, serving over 3.4 million customers, with a market share of about 40% for gas and 15% for electricity by customer numbers. While this acquisition would strengthen Hungary’s regional energy footprint, it has raised concerns in Romania about national security risks.
Romania’s Ministry of Energy has flagged the deal for review by the Romanian Commission to Examine Foreign Direct Investment (CEISD), citing MVM’s reliance on Russian gas as a potential vulnerability. The CEISD is responsible for scrutinizing and approving foreign investments to ensure they do not compromise national security. Romania’s energy ministry notified the commission about MVM’s ties with Russia, saying it identified elements of “decisive influence, shadow control, influence by economic dependence and effective control.”
This situation echoes Spain’s earlier decision to block a Hungarian bid for a railway merger due to geopolitical concerns, a fact which the Romanians referenced. “We have seen precedent in Spain where a transaction involving the Hungarian entity was rejected by a similar committee to the Romanian one,” Romania’s Energy Minister Sebastian Burduja said. “We will have to consider all of that then to reach a decision.”
The amount of the bid had also raised eyebrows. The Hungarian firm proposed paying up to EUR 200 mln for a 68% stake in E.ON Energie, which Burduja valued at no more than EUR 50 mln. The MVM offer significantly exceeded those of competitors, which included two state-owned Romanian energy companies.
“The value of the transaction will be under scrutiny [.…] and potential implications in the energy market,” Burduja said. “[We will] investigate further, probably also asking for a viewpoint from the national security establishment.”
Romania’s sensitivity to Russian influence is heightened by its proximity to the Ukraine war and prior incidents of alleged Russian interference, including the annulment of a presidential election. Concerns also stem from the sale contract, which allows for the potential resale of the Romanian energy provider to non-EU entities, possibly enabling indirect control by parties that may not adhere to European regulations.
“We will act firmly and unequivocally to defend the national security of Romania and the energy security of the European Union, which must rid itself definitively of its dependence on Russian gas,” Burduja insisted.
This article was first published in the Budapest Business Journal print issue of January 24, 2025.
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