Hungary's government took key steps on energy system challenges before Brussels' latest recommendations

Hungary's government has proactively implemented key measures to tackle electricity system challenges, anticipating and addressing issues that Brussels has recently highlighted. The country's energy infrastructure has seen significant upgrades aimed at managing the typical evening import demand, which ranges between 2,000–4,000 MW. Once planned storage facilities are operational, excess solar power generated during the day can be shifted to meet evening peak demand, thereby reducing the need for imports and stabilizing prices.

These substantial measures were undertaken during the previous government's term, indicating a forward-thinking approach to the system's vulnerabilities. Despite this background, Brussels continues to press Hungary to expedite the expansion of renewable energy sources, with a specific emphasis on wind power. This persistent push maintains a debate where Brussels contends that Hungary possesses insufficient wind energy capacity.

The report acknowledges the strain on the grid due to renewables, a widespread infrastructural problem across Europe. It suggests connecting to European balancing energy market platforms like PICASSO and MARI as a solution. These platforms enable countries to share reserve capacities and system balancing capabilities.

Furthermore, the report reiterates criticism of Hungary's "rezsicsökkentés" (utility cost reduction scheme), arguing that dynamic pricing and energy price caps for households limit demand-side response. The proposed solutions include the widespread adoption of smart meters and the strengthening of aggregators and energy communities that consolidate smaller consumers or producers. The underlying assumption is that consumers, if exposed to real market prices, would shift consumption away from peak hours, thus stabilizing the system. While smart meter installation programs are underway, primarily for industrial users, residential meter deployment is also progressing. The regulatory and market frameworks for aggregators and energy communities have been initiated in Hungary, though their adoption remains in the early stages.