Over the past fifteen years, HUPX has become one of the most recognized and liquid organized electricity markets in the Central and Eastern European region. This success is not due to a single factor, but rather to a consciously developed strategic path, in which the regulatory environment, technological decisions, and international openness have all played a role. But how can one keep pace with industry developments while fully meeting the needs of market participants? This article summarizes the discussion of Gábor Simon, Dr. Mátyás Vajta, CEO of HUPX Zrt., and László Pintér, Chief Commercial Officer of HUPX Zrt., about the development of the Hungarian power exchange, its regional role, support for the green transition, and the opportunities offered by digitalization and technological innovation.
In EU member states two basic power exchange models can be observed: some countries – such as Hungary – operate their exchanges in a single market structure, while others, mainly in Western Europe, have developed competitive environments for power exchanges. Although HUPX is the exclusive operator of the spot market in Hungary, it actively strives to maintain and increase its competitiveness in the region.
When it was launched, the Hungarian power exchange consciously followed the best Western European practices to create an organized market platform that is easily accessible and compatible for international players. The successful implementation of this concept was supported by MAVIR, the Hungarian Energy and Public Utility Regulatory Authority, and the Ministry of Energy, as well as the cooperation of the domestic energy trading community, which significantly contributed to the dynamic development of the exchange over the past 15 years.
Initially, the HUPX management’s goal was to create a trading space in close cooperation with members, where every market participant could find their own path to success. Mátyás Vajta firmly believes that building personal relationships with traders is not only valuable but also the key to long-term success.
Cross-Border Cooperation – ADEX and Regional Integration
In 2024, HUPX, together with the Slovenian BSP SouthPool and the Serbian SEEPEX exchanges, established the ADEX group, which has since become the leading energy exchange in the Central and Southeastern European region. The aim of the cooperation was to establish an integrated yet locally operated exchange structure that offers a one-stop-shop service for market members by simplifying processes such as onboarding, data provision, and settlement.
Despite shared goals, practical implementation involved numerous challenges. Regional integration always requires thorough preparation and coordination – especially when different regulatory environments meet. Such cooperation is not only technically but also legally complex, as aligning EU and non-EU regulatory frameworks – for example in market coupling or data management – presents many challenges.
Nevertheless, technological harmonization was able to begin from the outset, as the participating exchanges used a common trading and settlement infrastructure, enabling efficient and seamless operation.
Innovative Products and Sustainability Mission
Currently, HUPX operates three main markets: the day-ahead market, the intraday continuous market, and the intraday auction market. These platforms serve different time horizons and trading strategies, offering increasing optimization opportunities for market participants – especially with the emergence and growing prevalence of electricity storage.
A unique feature of the Hungarian power exchange is that although it operates as a monopoly market, it actively participates in regional competition. Accordingly, it is crucial to remain competitive on a market basis. This effort is supported by the high maturity and liquidity of the Hungarian spot market, which has made the term “HUPX region” widely recognized within the professional community.
To support the green transition, HUPX launched the Guarantees of Origin (GO) market in 2022, which now offers standardized green energy products at the European level. The market is open to all producers and traders, and currently active trading takes place from more than a dozen European countries.
HUPX has set the goal of supporting the green transition. Guarantees of origin are the flagship of transparent green products, and in the future, they are expected to evolve in line with stricter ESG requirements – for example, toward exchange-based trading of PPAs or granular time-based guarantees of origin close to real-time and location.
Vision – Electrification and Digital Transformation
The spread of digitalization, data centres, and AI technologies is expected to generate significant additional energy demand, which could give new momentum to electrification in the region and in Hungary. A well-designed energy market model that keeps pace with technological development and enhances the stability of the electricity system could create new growth opportunities for organized electricity markets – including HUPX.
An important milestone is the launch of HUPX Labs, HUPX’s innovation and data platform, which provides up-to-date, digital access to exchange data. The platform supports market participants in data-driven decision-making, for example with trading information and visualization tools accessible via API.
For traders, HUPX’s vision clearly points toward cross-border, simpler, and faster trading. Integration within the ADEX Group, shared infrastructure, and digital developments – such as HUPX Labs – all serve to enable market participants to respond more efficiently, transparently, and flexibly to the rapidly changing energy market environment. The goal is the continuous development of ADEX markets in a direction where trading is not only technically smooth but also competitive in terms of business conditions and product offerings.
Authors, Gábor Simon, Dr. Mátyás Vajta, CEO of HUPX Zrt., László Pintér, Chief Commercial Officer of HUPX Zrt.
Gábor Simon
Head of Energy and Procurement
Gábor Simon
Mátyás Vajta
Mátyás Vajda
