PwC: Nuclear energy still dominates Hungary’s energy sector
As nuclear energy still receives strong political support in Hungary, with a big investment recently going into the upgrade of the country’s sole nuclear plant in Paks, nuclear energy is expected to continue to dominate the countryʼs energy market, PwC said in a report issued today.
At the same time, EU regulations are pressuring Hungary to increase its investment in renewable energy - something that might prove challenging, as there still appears to be a low willingness among customers to invest in renewables, the report added.
According to PwC, politics have a strong influence on pricing in Hungary, with the government cutting the energy bills of households by a cumulative 25% in recent years. PwC named the political environment, the infrastructural landscape and consumer attitudes as market conditions counteracting the transformation of the energy market.
A key factor of the market is a customerʼs mindset, where sensitivity to high prices prevails in Hungary, according to PwC. Since the regional standard of living is below that of Western European countries, affordability is key in both government decisions and meeting the needs of customers, according to the report.
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