BBJ: Developments in recent years have fundamentally reshaped the European energy market. What are the most pressing challenges facing the sector today?

Guntram Würzberg: Uncertainty has become a permanent feature of the energy market. Geopolitical conflicts and extreme weather events affect energy supply and prices almost daily. While we cannot control what happens in the Strait of Hormuz or the consequences of El Niño, we can determine how resilient our energy systems are to these external shocks. We have entered the second phase of the energy transition. While the past decade was primarily focused on expanding renewable generation capacity (Hungary went from 20,000 solar systems to more than 330,000 in seven years), the priority now is to integrate these resources efficiently into the energy system. The challenge is no longer simply how much energy we can generate, but also when, where and at what cost we can use it. This requires not only grid development, but also digitalization, energy storage, and greater flexibility in electricity consumption.

BBJ: E.ON recently announced two major development programs supported by EU funding. What results do you expect from these investments?

GW: The electricity grid is the backbone of the energy transition. Expanding renewable generation, increasing electrification, and growing industrial demand mean we must simultaneously increase grid capacity and improve the efficiency with which we use existing infrastructure. We operate Hungary’s largest electricity distribution network, 88,000 km long, serving approximately 3.4 million customers.

Under the new EU-funded grid development program, we are implementing grid investments worth nearly HUF 230 billion, creating more than 2,300 megawatts of additional connection capacity by 2030, which is earmarked for renewable energy investments. These investments include new and modernized substations, higher-capacity grid infrastructure and digital grid control systems. In parallel, we are investing HUF 13.5 bln to install 237,000 additional smart meters by the end of 2028, bringing the total to nearly 600,000 operating across our service area, the largest share in the country.

These programs, financed with European Union funding and supported by the Hungarian government, complement each other. Additional grid capacity will enable more customers and renewable energy producers to connect to the network, while smart meters will provide more accurate data to support more efficient grid operation. There is also a clear economic dimension. When companies consider new industrial investments, sufficient electricity capacity can influence where they choose to locate. Where that capacity is lacking, even major investment projects may face delays.

BBJ: To what extent is EU funding sufficient to finance the grid investments required in the coming years?

GW: EU funding is a major breakthrough. It is not a silver bullet, but it is a prerequisite for preparing the Hungarian power grid for the energy transition. However, these funds cover only around a quarter of the grid investments E.ON plans in the coming years: for every forint we receive from the EU, we add three of our own, provided we have fair, reliable regulatory rules and tariffs. Financing therefore still depends on corporate resources, which is why we need attractive grid fees in a stable regulatory framework that encourages investment. We take this responsibility seriously: since 2022, E.ON has invested approximately HUF 690 bln in Hungary’s energy network infrastructure. Customers rarely see this. They switch on the light, and there is light. But every new substation, cable, and pole strengthens the system and helps it keep pace with growing demand, so customers can charge an electric car or install solar panels at home. That is why fair regulation is the key to securing future private investment.

BBJ: What regulatory changes would be most effective in encouraging further investment in the electricity grid?

GW: When we build a substation or a high-voltage power line, we are investing in infrastructure that will operate for decades. Yet financing decisions must be made years before these assets become operational. This requires a predictable regulatory environment that ensures an appropriate return on necessary investments. The most effective step would be to phase out the so-called Robin Hood tax on regulated network activities. It is the cheapest grid investment the state can make. We would reinvest every forint released in modernizing critical infrastructure. The government has taken a good first step by allowing grid operators to offset up to 80% of the tax against investment. Implementing this rule successfully is now critical. This issue extends well beyond the energy sector. If grid capacity fails to keep pace with the economy’s needs, industrial investment and renewable energy expansion may slow. Grid development is not simply a matter of energy policy; it is also a matter of economic policy. Every HUF 10 bln we invest generates HUF 8.5 bln–9 bln of GDP and 450–500 jobs.

BBJ: Keeping Hungarian household energy bills affordable is a major social policy priority. But how can we reconcile that with the system’s long-term sustainability?

GW: Affordable energy is a fundamental social priority, and protecting vulnerable households must remain an important objective. At the same time, we should consider how the current support system could evolve to distribute costs more fairly while also encouraging more efficient energy use. The distinction is important. Rather than subsidizing every kilowatt-hour consumed equally, support should primarily protect households that genuinely need it. A more modern tariff structure could also let customers save by shifting their electricity use to periods that better suit the overall system. Future energy policy should encourage not only lower energy bills but also more efficient energy consumption. In this way, affordability and the cost-effective operation of the energy system can become mutually reinforcing objectives rather than competing priorities.

BBJ: What will determine whether Hungary successfully adapts to the next phase of the energy transition?

GW: The decisive factor in the coming years will be whether the development of the electricity system can keep pace with economic and technological change. Expanding renewable generation capacity alone will not be enough if grid infrastructure, energy storage and demand-side flexibility fail to develop at a comparable pace. E.ON is ready to keep investing in Hungary’s energy infrastructure: we invest, we connect, we deliver. What we need in return is predictable, fair and competitive regulatory conditions over the long term. Ultimately, the success of the energy transition will not be determined by how much new generation capacity we build, but by how efficiently we operate the energy system as a whole. This will be critical to security of supply, energy affordability and, increasingly, the competitiveness of the Hungarian economy.

This article was first published in the Budapest Business Journal print issue of October 30, 2026.