This paper describes the status of geothermal energy utilization-direct use-in Hungary, with emphasis on developments between 2000 and 2002. The level of utilization of geothermal energy in the world increased in this period and geothermal energy was the leading producer, with 70% of the total electricity production, of all the renewable energy sources (wind, solar, geothermal and tidal), followed by wind energy at 28%. The current cost of direct heat use from biomass is 1-5 USc/kWh, geothermal 0.5-5 UScent/kWh and solar heating 3-20 UScent/kWh. The data relative to direct use in Hungary decreased in this period and the contribution of geothermal energy to the energy balance of Hungary, despite significant proven reserves (with reinjection) of 380 million m(3)/year, with a heat content of 63.5 PJ/a at DeltaT = 40degreesC, remained very low (0.25%). Despite the fact that geothermal fluids with temperatures at the surface higher than 100degreesC are available, no electricity has been generated. As of 31 December 2002, the geothermal capacity utilised in direct applications in Hungary is estimated to be 324.5 MWt and to produce 2804 TJ/year. Geothermal heat pumps represent about 4.0 MWt of this installed capacity. The quantity of thermal water produced for direct uses in 2002 was approximately 22 million m(3), with an average utilization temperature of 31degreesC. The main consumer of geothermal energy is agriculture (68% of the total geothermal heat dedicated to direct uses). The geothermal water is used only in five spas for space heating and sanitary hot water (SHW), although there are 260 spas in the country, and the thermal water produced has an average surface temperature of 68degreesC. The total heat capacity installed in the spas is approximately 1250 MWt; this is not provided by geothermal but could be, i.e., geothermal could provide more than three times the geothermal capacity utilized in direct uses by 31 December 2002 (324.5 MWt). (C) 2003 Published by Elsevier Ltd on behalf of CNR.