SYNOPSIS The role of market forces has traditionally been very limited in Hungary, with central and administrative guidance and financial control. For future economic development the state has to ensure the operation of energy supply on the basis of market conditions, while satisfying appropriate environmental parameters. The development of the energy supply situation in Hungary is outlined, showing that there will still be a considerable import dependence by the turn of the century. The status of the renewable energy sources is examined, especially solar energy, biomass and geothermal energy. The final conclusion is that the renawvable energy sources could be contributing up to 6% of the Hungarian primary energy consumption by the end of the century.