Managing energy supply security and gas diversification in Hungary - putting theory into practice
No 238, IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies
For a long time, gas has been the fuel that Hungary is particularly sensitive to in terms of security of energy supply; thus, gas diversification has become a key issue. However, along with the 2014 decision on the construction of new units at the Paks Nuclear Power Plant (Paks-2), the energy agenda has changed considerably. Paks-2 will have a decisive role in ensuring security of supply, and, in fact, it has already begun to perform a role in energy decisions. This paper aims to assess, on the one hand, the security of the stationary fuel supply in Hungary by applying the conventional three-dimensional approach, encompassing availability, affordability and sustainability, and, on the other, use our own gas diversification scheme to analyse the issue of gas diversification. We find that considerable progress has been made on gas diversification, and Paks-2 can also be included in our diversification scheme as a kind of sectoral diversification option. Prior to the Paks-2 decision, Hungary had followed an upward trajectory for its security of supply, despite certain negative developments. With Paks-2, Hungary’s dependence will both decrease and increase – as new types of risks emerge. There is great uncertainty about Hungary’s energy policies and security of supply, with the role of coal, gas and renewables in the energy/electricity mix still not settled. Their future is expected to be heavily dependent on political decisions rather than energy market factors, though energy market uncertainties are also high.
Keywords: Hungary; Russia; energy security; security of supply; gas diversification; coal; gas; nuclear energy; renewables (search for similar items in EconPapers)
JEL-codes: L71 L95 O13 P28 Q4 (search for similar items in EconPapers)
Pages: 27 pages
New Economics Papers: this item is included in nep-cis and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iwe:workpr:238
Access Statistics for this paper
More papers in IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies Contact information at EDIRC.
Bibliographic data for series maintained by Kanász Mária ().