AUTHOR: Sarah Benson
DATE: October 1999
PAGES:
ABSTRACT:
Hungary was the first country in the region to begin the restructuring and privatisation of its energy sector.
Its energy policies are aimed at ensuring security of supply and improving energy efficiency and the environment,
with a view to preparing the sector for entrance into the EU. Coal is Hungary's most abundant energy resource and
there are estimated reserves of 2.9 Gt of lignite, 1 Gt of brown coal and 0.6 Gt of hard coal. Coal production
declined sharply from 1987 onwards, reflecting the economic problems which would lead to the break up of the then
Soviet Union. The coal industry has been forced to undergo a strict programme of restructuring and privatisation
due to the collapse of the mining industry in the early 1990s. This has resulted in the closure of many mines and
loss of jobs. In 1998, Hungary produced 14.8 Mt of coal. Around 90% of coal production is brown coal and lignite.
Additional coal demand is met by imports. The use of lignite with high sulphur content has caused severe air
pollution, a problem which is only now being addressed.