Massive cutback in energy modernization


After a yearlong negotiation with the European Commission, the National Development Ministry (NFM) has announced that it will cut back the amount of its proposed budget for the energy sector’s modernization between 2013 and 2020 by 90%, from HUF 125 billion to HUF 12.5 bln.    

The remnant of the original amount, HUF 100 bln, will be used to support residential projects to boost energy efficiency. The proposed HUF 12.5 bln will not be split equally among the budgetary periods between 2013 and 2020, but will be paid in one amount next year. Although the ministry hasn’t disclosed which projects will be supported, industry experts suspect that a Slovak-Hungarian natural gas interconnector pipeline and an “Intelligent Network” pilot will be subsidized, both run by project companies of state owned Hungarian Electricity Works (MVM), excluding all other market players.

István Bart, the director of the Hungarian Energy Efficiency Institute (MEHI) said that improving the energy efficiency of residential buildings is a critical issue, and he considers the change a step in the right direction. “MEHI has long been advocating that carbon forints (the revenue coming from the sales of Hungary’s CO2 emission quota) should be spent on improving the position of households, and major projects should be financed from the market,” he said.

Next year, the amount spent on residential projects will be around HUF 6.25 bln, and this will be raised to HUF 12.5 bln from 2014 on. This amount accounts for half of Hungary’s carbon forints – the other half is directly channeled into the central budget.


Hungary’s Total Greenhouse Gas Emissions (source: EEA)

1,000 tonnes of CO2 equivalent











Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.