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Hungary to introduce mandatory energy efficiency system from 2021

Industry leaders and stakeholders agree with the government’s intention to introduce a mandatory energy efficiency system starting from 2021, said the Minister for Innovation and Technology László Palkovics after the first round of the deliberation process.

The planned measures are expected to contribute to Hungary’s climate objectives and economic development while preserving the benefits of the government’s utility cuts scheme, reads the statement of the ministry.

Under the mandatory energy efficiency system, companies supplying energy would be obliged to achieve their energy-saving targets, either by investing in energy efficiency or by paying contributions.

Mr Palkovics underlined that the government plans to push forward with stakeholder consultations in the coming months so that negotiations on the introduction of the energy efficiency system could start this autumn as part of the implementation of the energy strategy.

The government has set up a professional working group, to coordinate policy measures with industry interests that would lead to the implementation of the planned energy efficiency system from 2021 onwards. The working group had its first session yesterday with the participation of the Hungarian Petroleum Association, the Hungarian Energy and Public Utilities Regulatory Authority, the Association of Hungarian Energy Traders, MOL, E-ON Hungary and state-owned MVM Hungarian Electricity. According to the statement of the ministry industry representatives agreed on the principles of the proposed system and are open to continuing the discussion on the details of the implementation.

The ministry highlights that the planned measures will not only strengthen Hungary’s energy independence but it will also create business opportunities for industry players and encourage investments.

Hungary named the improvement of the energy efficiency of the economy one of the priority areas of the National Energy- and Climate Plan published at the beginning of this year. The mandatory system was mentioned as a tool to reorientate investments towards higher energy efficiency on a market basis. Hungary also made commitments to keep the growth of energy consumption in check so that the country’s final energy consumption in 2030 wouldn’t exceed the 2005 level, otherwise, the difference shall be provided exclusively from a carbon-neutral energy source.

The Hungarian Ministry for Innovation and Technology has also announced recently to launch an e-mobility grant of 5 billion forints (14.4 thousand euros) aiming to support the expansion of smart and environmentally friendly transportation solutions. According to the press statement of this ministry, these new initiatives will contribute to relaunch the economy in a greener and more sustainable way.

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