Hungary: Collecting the First Dividends of Interconnectivity?
Hungary is a resource-poor country with only limited and relatively expensive coal (lignite) and hydropower potential. It has a considerable record of hydrocarbon production dating back to the late 1930s, but much of these conventional reserves have already been depleted. Domestic supplies of gas constitute around 20%, internal oil production provides less than 8% of total demand for the time being, and both are in decline. Thus, import dependency has long been a natural, and socially and politically accepted necessity. Hungary built up a significant nuclear component during the mid-1980s in Paks (four Soviet VVER blocs meet around 40% of electricity demand) and relies heavily on natural gas imports.
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