Hungary Geothermal Energy Market - Growth, Trends, and Forecasts (2023 - 2028)

Hungary Geothermal Energy Market Analysis

The Hungarian geothermal energy market is expected to register a CAGR of more than 10% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.

• Over the medium term, factors such as government initiatives to reduce the dependency on energy imports from foreign nations are likely to drive the market during the forecast period.
• On the other hand, the lucrative market for alternative clean energy sources like solar and wind are expected to hinder the market's growth during the forecast period.
• Nevertheless, the Hungarian government announced plans to support the upscale of domestic geothermal energy, which are likely to create lucrative growth opportunities for the Hungary geothermal energy market during the forecast period.

Hungary Geothermal Energy Industry Segments

Geothermal energy is heat within the earth. Thus, it is renewable. Geothermal heat is used for bathing, heating buildings, and generating electricity. 

Hungary's geothermal energy market is segmented by application. By application, the market is segmented into power generation and direct heat utilization. The report also covers the market size and forecasts for Hungary's geothermal energy market. For each segment, the market sizing and forecasts have been done based on installed capacity megawatts (MW).

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Hungary Geothermal Energy Market Trends

This section covers the major market trends shaping the Hungary Geothermal Energy Market according to our research experts:

Increasing Demand for Alternative Clean Energy Sources Expected to Hinder the Market

• Hungary has increased its climate ambitions by legislating a carbon neutrality goal for 2050 and adopting a long-term vision with the National Clean Development Strategy, which guides energy policy decision-making. Hungary has a strong starting point with multiple low-carbon generations, and the government has an ambitious target of 90% clean electricity by 2030.
• In 2021, Hungary sourced most of its electricity from solar energy. In 2021, 3.8 terawatt hours were derived from this source, while other renewables and wind energy sources ranked second and third, respectively.
• According to preliminary statistics by the Hungarian Energy and Public Utility Regulatory Authority (MEKH), Hungary's renewables accounted for 19.2% of Hungary's electricity generation in 2021.
• In 2021, solar was the leading renewable power generating source with 3,793-gigawatt hours (GWh), a Y-o-Y increase of 54.3%. It reached a 10.6% share in Hungary’s power generation and 55.2% in its combined renewable power output. Biomass and wind contributed 25.9% and 9.5% of renewable generation, respectively.
• In May 2022, Hungary’s state-owned MVM Group’s renewables announced plans to build 28 new solar power plants with 0.5 MW capacity each. The EUR 17.3 million investment is partly supported by EU funds. The new plants are expected to start commercial operation next year. The project complies with MVM’s mid-term strategy, which aims to accelerate the uptake of renewable energy sources in Hungary in line with the 2050 climate goals and the country’s green transition.
• Thus, the existing, upcoming, and planned alternative clean energy projects such as solar, wind, and others are expected to hinder the market's growth during the forecast period.

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