MVM Group is investing in energy security and decarbonization.
László Fazekas, Deputy CEO and Chief Financial Officer, MVM Group
Over the past decade, Hungary’s energy systems have become increasingly green and internationally connected, a process driven by the state-owned MVM Group, which dominates the nation’s electricity and natural gas sectors. “We have market-leader positions in power generation, transmission, distribution, wholesale and retail, as well as in natural gas distribution, wholesale, storage and retail,” detailed László Fazekas, the group’s deputy CEO and chief financial officer. “In addition, we’re leading the region’s energy transformation. We operate in 23 countries and have around 11 million customers in Central and Eastern Europe.”
Fifty-three percent of Hungary’s domestically generated electricity comes from MVM Group and more than 80 percent of its output is produced by Paks nuclear plant. “Nuclear energy will remain an integral part of our power mix in the coming decades,” Fazekas said. “Paks’ four reactor blocks are set to expire between 2032 and 2037. One of our largest development projects concerns extending these dates by 20 years.”
The group is also investing in solar and wind generation, energy storage and grid modernization, and it will phase out Hungary’s only operational coal-fired power plant by 2029, replacing it with a 535-megawatt combined-cycle gas turbine facility. A second 1-gigawatt CCGT plant is in the pipeline too. “It’s essential to have efficient and flexible generation units in our mix,” he noted. “These investments will bolster Hungary’s green transition and support the integration of renewables into our grid.” Although the group’s power and natural gas networks are interconnected with those of most neighboring countries, it wants to further boost Hungary’s energy security. “Our strategy is to diversify our gas supply portfolio. For example, we’ve acquired a stake in Azerbaijan’s Shah Deniz gas field and we’re looking for more global partnerships,” he said. “On the nuclear side, our current fuel supplier is Russia’s Rosatom. Our target is to have alternatives and we’re forging a partnership with the U.S.’s Westinghouse in this area.” Fazekas pointed out that MVM Group is also diversifying its financing sources: “We’ve issued international bonds three times recently, two of which were nominated in U.S. dollars. As a state-owned utility with an investment-grade credit rating, MVM Group is a great opportunity for U.S. investors.”