Determining the energy supply security of Hungary using the S/D Index

Abstract

Recently, the topic of energy security has gained a lot of attention due to the increasing political conflicts and economic disagreements in/between primary energy exporting and importing countries. There are various indices and complex methods available (e.g., the Herfindahl-Hirschmann Index, Shannon-Index, Crisis Capability Index and Supply/Demand Index) to estimate the level of energy security of a country/region, allowing for the content of its primary energy mix, the reliability of its own energy sources, and the dependence on import from other countries. The goal of this study is to evaluate the medium and long-term security of energy supply in Hungary with the Supply/Demand Index (S/D). This indicator takes into account all three parts of the energy system: final energy demand, energy conversion and transport and primary energy supply. Throughout the study, the assessment and analysis of these factors and their components is presented in the case of Hungary, finally providing a proper value that describes the status of its energy security, highlighting its weak points. Moreover, a comparison is made with the most recent study for Hungary that was carried out in 2006, so that changes and differences in its former and current energy system are more visible.