The effect of the CO2 prices on the Hungarian wholesale electricity pricesUploaded: 27 of February, 2019

Using the REKK-developed European Electricity Market Model, we model the Hungarian electricity wholesale prices assuming different coal, natural gas and CO2 prices. We model the price developments both for the year 2019 and also for 2025, because the main infrastructure elements are different in these years (Cross-border capacities, consumption, power plants, etc.). The model results a strong correlation between the CO2 price and the Hungarian wholesale electricity price.