In Berlin on Tuesday András Aradszki, Secretary of State for Energy Affairs at the Ministry of National Development, said that the construction of the Nord Stream 2 natural gas pipeline connecting Russia and Germany may result in Hungary having to procure this energy source at a price higher than it does now.

In his presentation at the conference entitled “Energy Dialogue” at the Hungarian Embassy in Berlin, the Secretary of State pointed out that the proposed development – which would double the existing Nord Stream pipeline’s capacity – might result in Hungary needing to source natural gas through the Nord Stream 2 pipeline at a higher price and only from the direction of Austria, instead of through Ukraine.

Mr. Aradszki emphasised that during the establishment of energy union aimed at creating a common energy market for the European Union, the principle of solidarity would hopefully be applied as well, and German decision makers would have due regard to the vulnerability of the Central and South-East European region.

He underlined that the north-south energy corridor running from Poland to Croatia needs to be completed to establish a “real market”, resulting in the diversification of sources of supply and transport routes. He pointed out that Hungary has used its best endeavours to develop interoperable natural gas and electricity networks suitable for utilising several sources; however, the interconnectors – i.e. special pipeline networks through which the energy sources can be transported in both directions – are still not in place in Romania and Croatia.

At the conference at the Hungarian Embassy in Berlin, leading specialists in the sector, business leaders and government officials – including Jochen Flasbarth, State Secretary of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety – are exploring further possibilities for energy cooperation between Hungary and Germany.

Mr. Flasbarth firstly reported on the progress of change in energy policy: the ending of nuclear energy use, with the gradual shutdown of all German nuclear power plants; the replacement of lost production through renewable sources; and the development of a decarbonised economy, free of carbon dioxide and other greenhouse gas emissions. On longer-term trends, he said that first the energy sector is expected to “decarbonise itself”, and will increasingly focus on electricity generation, with this process giving impetus to the decarbonisation of other areas – primarily transport. All this means that “the future of Germany and Europe lies in electricity”, said the State Secretary at the German Federal Ministry for the Environment.

(Ministry of National Development)