Published: December 11 2023
Hungary and Romania have signed an important partnership agreement, which will see Hungarian battery plants using Romanian energy. This collaboration is expected to boost innovation in Budapest.
The Partnership Agreement
Hungarian Foreign Minister, Péter Szijjártó, recently visited Bucharest to sign a crucial deal with the Romanian government. Initially, the agreement focused on extending gas transport capacities between the two countries. However, it also includes provisions for electricity transportation. Instead of Hungary exporting energy or electricity to Romania, the Hungarian battery plants will utilize Romanian electricity and gas.
Romania's Energy Capacity
Romania relies heavily on hydroelectric power plants, accounting for 25% of its electricity consumption. The country's system also includes pump storage plants, providing significant regulation abilities. This allows Romania to build more solar and wind power farms and store energy effectively. Additionally, Romania plans to build nuclear power plants with American assistance, enabling the country to become a major exporter of electricity in the near future.
Reducing Dependency on Russian Gas
Hungary currently depends on foreign gas transfers, with 80% of its supply coming from Russia. However, the partnership with Romania, which has its own gas field in the Black Sea, could potentially substitute 20-40% of Russian imports by the 2030s. This diversification of gas sources could significantly reduce Hungary's dependence on Russia.
Implications for Putin's Regime
The partnership between Hungary and Romania in the energy sector may be seen as bad news for Vladimir Putin and his regime. Hungarian Prime Minister Orbán and Foreign Minister Szijjártó have previously emphasized Hungary's reliance on Russia, making it challenging for the country to support sanctions against Russia. However, the collaboration with Romania indicates a potential shift towards reducing this dependency and diversifying energy sources.
Questions & Answers
What partnership was recently signed between Hungary and Romania? Hungary's foreign minister, Péter Szijjártó, traveled to Bucharest to sign a deal with the Romanian government to extend gas transport capacities and electricity transportation between the two countries.
Will Hungary export energy or electricity to Romania? No, Hungary will not export energy or electricity to Romania. Instead, the Hungarian battery plants will work with Romanian electricity and gas.
How does Romania generate electricity? Romania generates 1/4 of its electricity consumption through hydroelectric power plants, with the backbone of their system being pump storage plants.
Why can Romania build more solar and wind power farms compared to Hungary? Romania's energy system has significant regulation ability due to its pump storage plants, allowing them to build more solar and wind power farms without the risk of the system collapsing.
What are Romania's plans for energy production? Romania aims to build nuclear power plants with American help, which will further increase their capacity to export large amounts of electricity in the future.
How dependent is Hungary on foreign gas transfers? Hungary is highly dependent on foreign gas transfers, with 80% of its gas coming from abroad, mainly from Russia.
Will Romania become a significant gas supplier for Hungary in the future? It is possible. Romania has a gas field in the Black Sea called Neptune, where production is expected to start in 2027-2028 through Romanian-Austrian cooperation. This could potentially substitute 20-40% of Hungary's Russian gas import by the 2030s.
What has been the stance of the Hungarian government regarding Russia and energy dependency? The Hungarian government, led by Prime Minister Orbán and Foreign Minister Szijjártó, has acknowledged Hungary's dependence on Russia for gas. However, they have not supported sanctions against Russia in the energy sector, leading some to speculate about possible political reasons for this stance.
Will the partnership between Hungary and Romania affect Putin's regime? The partnership and potential decrease in Hungarian dependence on Russian gas could be seen as bad news for Putin's regime. However, the cooperation between Hungarian and Russian officials may continue even after a possible decrease in gas imports from Russia.
