Hungary Renewable Energy Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | 6.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Hungary Renewable Energy Market Analysis
The Hungary Renewable Energy Market size in terms of installed base is expected to grow from 4.45 gigawatt in 2024 to 6.09 gigawatt by 2029, at a CAGR of 6.5% during the forecast period (2024-2029).
- Over the medium term, favorable government policies and regulations and high solar energy potential are expected to drive the market during the forecast period.
- On the other hand, the limited access to financing for developing renewable energy projects will likely hinder market growth.
- Nevertheless, the ambitious renewable energy targets by European Union is expected to create significant opportunities for market studies during the forecasted period.
Hungary Renewable Energy Market Trends
Solar Energy Expected to Witness Significant Market Growth
- Hungary has a favorable solar resource potential, with a relatively high solar radiation level. This means the country receives ample sunlight, making it suitable for solar energy generation. The abundance of solar resources creates a strong foundation for the growth of solar energy in Hungary.
- The Hungarian government has implemented various policies and incentives to promote solar energy adoption. These include feed-in tariffs, net metering programs, tax incentives, and grants for solar installations. Such support mechanisms make solar energy more financially attractive and encourage investment in solar projects.
- Moreover, the cost of solar photovoltaic (PV) technology has decreased globally. This cost reduction, technological advancements, and economies of scale have made solar energy increasingly affordable and competitive with conventional energy sources. Lower costs have boosted the attractiveness of solar energy investments in Hungary.
- According to International Renewable Energy Agency, the installed solar capacity in the country has increased significantly in recent years. Between 2018 and 2022, the solar energy installed capacity increased by more than 4 folds. This significant solar energy rise will likely continue during the forecasted period.
- Additionally, like many countries, Hungary aims to enhance its energy security and reduce dependence on imported fossil fuels. Solar energy provides a domestic, decentralized, and renewable energy source, contributing to diversification and reducing reliance on external energy imports.
- For instance, in June 2023, Hungary unveiled its largest interconnected solar power plant in the Municipality of Mezőcsát. With an impressive installed capacity of 250 MW, this solar facility has been established through an investment of USD 262 million. The plant is expected to generate approximately 372 GWh of clean energy annually.
- Considering these factors, solar energy is expected to play a significant role in Hungary's renewable energy market, contributing to the country's energy transition and sustainable development goals during the forecasted period.
Government Supportive Policies and Regulations is Likely to Drive the Market
- The Hungarian government has established a supportive policy framework for renewable energy development. This includes the implementation of feed-in tariffs, tax incentives, grants, and other financial mechanisms to incentivize investments in renewable energy projects. Clear and favorable policies provide stability and predictability for investors, encouraging them to participate in the renewable energy market.
- For instance, in June 2023, according to the Ministry, by the latest summer of 2025, system operators and distribution companies will have the opportunity to seek subsidies for the construction of energy storage facilities. The tender amount of USD 171 million will be open for applications in June 2023, with the selection of winners expected later in the same year. This initiative aims to incentivize the development of energy storage projects, enabling the integration of renewable energy sources and enhancing the stability and efficiency of the energy system.
- Furthermore, Hungary, as a member of the European Union, must meet specific renewable energy targets set at the EU level. The government's commitment to these targets creates a strong impetus for developing and expanding renewable energy sources. Meeting these targets requires significant investments in renewable energy, leading to increased government support and initiatives in the sector.
- For instance, in March 2023, the European Parliament and the Council recently achieved a preliminary agreement to increase the mandatory renewable energy target to a minimum of 42.5% by 2030. This agreement signifies a collective effort to further promote and prioritize renewable energy sources across European Union member states. The revised target reflects a commitment to accelerate the transition towards a greener and more sustainable energy system, considering the urgency of addressing climate change and reducing reliance on fossil fuels.
- As of 2022, Hungary had a total installed renewable capacity of 3,926 MW which showed a growth rate of more than 140% compared to 1630 MW in 2018, signifying the increased adaption of renewable energy in recent years.
- Additionally, the Hungarian government recognizes the importance of energy security and reducing dependence on imported fossil fuels. Renewable energy sources, such as solar, wind, and biomass, provide a diverse domestic energy mix, reducing reliance on external energy sources. This aligns with the government's long-term energy security goals, driving support for renewable energy development.
- Therefore, as mentioned above, supportive government policies are expected to drive the market during the forecasted period.
Hungary Renewable Energy Industry Overview
The Hungary renewable energy market is highly consolidated. Some of the key players in this market (in no particular order) include E.ON SE Sponsored ADR (Germany), China National Machinery Import and Export Corporation, MVM Group, MET Holding AG, and Solarpro Holding AD.
Hungary Renewable Energy Market Leaders
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E.ON SE Sponsored ADR (Germany)-
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China National Machinery Import and Export Corporation
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MVM Group
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MET Holding AG
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Solarpro Holding AD
*Disclaimer: Major Players sorted in no particular order
Hungary Renewable Energy Market News
- January 2023: The construction of MET Gerjen Solar Park and MET Söjtör Solar Park was successfully concluded, and both solar power plants, with a combined capacity of 96 MWP, officially commenced commercial operations. These investments span a total area of 170 hectares across the two municipalities in Hungary. Completing these projects involved installing nearly 180,000 solar panels, solidifying their significant contribution to the country's renewable energy infrastructure.
- May 2022: MVM Group, the state-owned energy company in Hungary, revealed plans to construct 28 new solar power plants, each with a capacity of 0.5 MW. The European Union partly funded this investment, aligning with the company's mid-term strategy to advance the adoption of renewable energy sources in Hungary. The project aligns with the country's commitment to achieving its 2050 climate goals and transitioning to a greener energy landscape. The newly planned solar power plants are expected to commence commercial operation in the coming year, contributing to the expansion of renewable energy generation in Hungary.
Hungary Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Hungary Renewable Energy Installation Capacity Forecast, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Government Supportive Policies and Regulations
- 4.5.1.2 Solar Energy Potential
- 4.5.2 Restraints
- 4.5.2.1 Limited Access to Financing
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGEMENTATION
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5.1 Source
- 5.1.1 Hydropower
- 5.1.2 Wind
- 5.1.3 Biofuel
- 5.1.4 Solar
- 5.1.5 Other Sources
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers, Acquisitions, Collaboration and Joint Ventures
- 6.2 Strategies Adopted by Key Players
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6.3 Key Companies Profile
- 6.3.1 E.ON SE Sponsored ADR (Germany)
- 6.3.2 China National Machinery Import and Export Corporation
- 6.3.3 MVM Group
- 6.3.4 MET Holding AG
- 6.3.5 GCL System Integration Technology Co Ltd
- 6.3.6 Solarpro Holding AD
- 6.3.7 ABO Wind
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Ambitious Renewable Energy Targets by European Union
Hungary Renewable Energy Industry Segmentation
Renewable energy refers to energy derived from natural resources that are replenished or regenerated over a relatively short period. These energy sources are considered sustainable and have minimal negative environmental impacts compared to non-renewable energy sources, such as fossil fuels.
Hungary renewable energy market is segmented by source. By source, the market segmented into Biofuel, Solar, Wind, Hydropower, and Others. The market sizing and forecasts have been done for each segment based on installed capacity.
Hungary Renewable Energy Market Research FAQs
How big is the Hungary Renewable Energy Market?
The Hungary Renewable Energy Market size is expected to reach 4.45 gigawatt in 2024 and grow at a CAGR of 6.5% to reach 6.09 gigawatt by 2029.
What is the current Hungary Renewable Energy Market size?
In 2024, the Hungary Renewable Energy Market size is expected to reach 4.45 gigawatt.
Who are the key players in Hungary Renewable Energy Market?
E.ON SE Sponsored ADR (Germany)-, China National Machinery Import and Export Corporation, MVM Group, MET Holding AG and Solarpro Holding AD are the major companies operating in the Hungary Renewable Energy Market.
Hungary Renewable Energy Industry Report
Statistics for the 2024 Hungary Renewable Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hungary Renewable Energy analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
