Supply: Energy Sources
Electricity
The installed capacity of the domestic power plants is 9172.7 MW, the value of available capacity is 8297.9 MW of which 3106 MW (37.4%) is controlled, 5191.9 MW (62.6%) is uncontrolled.
Electricity production is split between nuclear power with 37%, gas with 38% and coal with 18%. The original nuclear capacity is concentrated on the site of Paks with 4 VVER reactors of 470 MW each, commissioned between 1983 and 1987.In late 2009, Paksi Atomeromu increased the capacity of its 440 MW block 3 up to 470 MW (blocks 4, 1 and 2 had already been retrofitted in 2006, 2007 and 2008, respectively). Further enhancement of efficiency can be realized with increasing the heat power of the reactor. International experiences showed that capacity upgrading could be accomplished this way. Prudent preparations and multilevel reconstructions will have led to reaching 500 MW nominal power output of the four units for 2009.
Hungary has significant exchanges of electricity. In 2009 Hungary imported 10,972GWh in total out of which 6,001GWh was coming from Slovakia (55%) 2,906GWh from Ukraine (26%) , 1,392GWh from Austria (13%), 586GWh from Romania (5%), 75GWh from Serbia (0.7%) and 12GWh from Croatia (0.1%). During the same year, Hungarian exports totaled 5.459GWh so the import-export balance totaled 5,513GWh (Croatia imported 3,309GWh, Austria: 238GWh, Serbia 1364GWh, Romania: 308GWh, Ukraine: 240GWh from Hungary).
Nuclear Power Plants
In the field of nuclear energy, Hungary operates one nuclear power plant located at Paks. There are four VVER 440/213 type units in operation. A capacity enhancement program was running from 2005 to 2009 and as a result of this 8% additional capacity was realized in the plant. This means that the original 440MW electric power output was increased to 500MW in all four blocks. Its electric energy production was as high as 15.761 GWh in 2010, with 90% average load factor. This also means that the contribution of Paks Nuclear Power Plant Ltd. to the total domestic energy production was 42.1%.
The Hungarian government is willing to extend on one hand the service life of units (from 30 to 50 years) but on the other hand also the capacity. Therefore on 30th March 2009 the Government has agreed to investigate the possibility of establishing new block(s) next to the existing power plant. However the Parliament has not given a final decision on the construction of the new blocks but the Committee on Sustainable Development of the Hungarian Parliament favors the extension. Now the preparatory work of the possible new unit(s) is in progress. The CEO of the power plant stated that they “started the process for obtaining the site license and the environmental license and for assessing the circle of potential suppliers and contractors and the required labour force” (Press release: Paks, 1 February 2011).
The power plant will start the licence application process of the service life extension of Unit 1 by the end of 2011 by turning in the application to the Nuclear Safety Directorate of the Hungarian Atomic Energy Agency (HAEA).
Production of Electricity in 2008 according to energy sources in Hungary, as compared to other countries in Central and Eastern Europe, Austria and the European Union 15
Per Capita Consumption of Electricity since 1988 in Estonia, as compared to other countries in Central and Eastern Europe, Austria and the European Union 15
There is a trend visible in the EU, which shows that the demand for electricity is increasing more quickly than the total demand for energy.
Electricity balance - 2009 | TWh | % | |
|---|---|---|---|
GROSS PRODUCTION | 35.91 | 100.0 | |
hydro | 0.23 | 0.64 | |
nuclear | 15.43 | 42.97 | |
wind | 0.33 | 0.92 | |
thermal, of which | 19.92 | 55.47 | |
| ex-coal | 6.42 | 17.88 |
| ex-oil | 0.59 | 1.64 |
| ex-gas | 10.47 | 29.16 |
| ex-biomass | 2.45 | 6.82 |
NET PRODUCTION | 33.53 | 93.37 | |
Imports | 10.70 | 29.80 | |
Exports | -5.19 | -14.45 | |
Transport/distribution/losses | -3.68 | -10.25 | |
TOTAL CONSUMPTION | 35.36 | 98.47 | |
Energy Sector Consumption | 2.56 | 7.13 | |
FINAL CONSUMPTION | 32.80 | 91.34 | |
| industry | 9.37 | 26.09 |
| transport | 1.17 | 3.26 |
| households, services | 22.27 | 62.02 |
Electricity production in Hungary according to energy sources, 2009
Electricity grid
The transmission grid consists of an extensive network of 750 kV, 400 kV, 220 kV, 120 kV lines. It is linked to the UCTE system through Austria, Slovakia and Croatia. The previous associations of transmission system operators (like UCTE, ETSO, NORDEL, etc) were terminated and the new platform, the ENTSO-E (European Network of Transmission System Operators for Electricity) was established with Hungary as one of the founders. It has started its operation in 1st July 2009. Hungary has the following cross-boarder transmission capacities:
- Austria: 2x400kV, 2x220kV lines with 500MW capacity for both ways
- Slovakia: 2x400kV lines with 600MW capacity from Hungary to Slovakia and 1150MW from Slovakia to Hungary
- Ukraine: 1x750kV, 1x400kV, 2x220kV with 450MW capacity from Hungary to Ukraine and 455 MW from Ukraine to Hungary
- Romania: 1x400kV, 2x400kV with 400MW capacity to both ways available for energy trade
- Serbia: 2x400kV with 600MW capacity to both ways
- Croatia: 4x400kV with 1000MW capacity from Hungary to Croatia and 500MW from Croatia to Hungary.
Oil and Natural Gas
Oil
The production of oil was stable in the 1970-90’s around 2 Mt, but in mid 90’s it started to decline and the latest available figures from 2009 show that it reached 800 thousand t/year. In 1997 the total oil production was around 70thousand barrel/year (out of it crude oil 38thousand barrel/day), while in 2009 it fell to 35thousand barrel/day ( out of this crude oil 16 thousand barrel/day). The oil production is distributed over 6 production sites, and covers 20% of the country’s needs. The refining capacity, of 161,000 bl/day in three refineries, is largely under-utilized. An important program of modernization was put in place, which requires to be continued in order to increase the share of light products (27% on average currently).
The imports of hydrocarbons are done by pipeline. The 3 principal ones are the pipeline Friendship I and II and the pipeline of the Adriatic. With regard to security of supply, Hungary adopted new legislation on security stockpiling of imported crude oil and petroleum products in 2001. Current levels of petroleum stocks reaches 550 thousand tons strategic stock covering the needs for 30 days. The directly (mobile) stored oil products (petroleum, petrol, diesel, ETO) was 1263 ktons at the end of 2009, fulfilling stockpiling obligations. Legislation requires that liquid carbohydrate stocks must cover the domestic needs at least for 90 days. . The strategic oil stocks are held and managed by the Hungarian Hydrocarbon Stockpiling Association.
Oil accounts for approx. 36% of final consumption in 2008.
Gas
Hungary has a significant production of natural gas, which has been decreasing for many years and amounts to approximately 2.6 Gm3 in 2010, against 4.9 Gm3 in 1990. Hungary is highly dependent on its imports (8.25 Gm3 in 2009), which for the moment come primarily from Russia (6.06 Gm3 in 2009) and a smaller amount from the west (1.96 Gm3). Due to the global economic downturn, some decline was experienced in the import amounts because of lower demand.
Cross-border capacities of natural gas
The Western entry point is at Mosonmagyaróvár, with 13,1 million m3/
day capacity exists for gas import. The Eastern entry point is at Beregdaróc, where 72 million m3/day natural gas can be imported for domestic use and an additional 12 million m3/day for transit towards Serbia and Bosnia-Herzegovina. Most of these capacities are booked through long term contracts.
Hungary has long term import contracts with Panrusgas for 9000 million m3/ year and with E.on Ruhrgas for 500 million m3/year till 2015. Further 900 million m3/year will be coming from Bothli Trade AG till 2014, and 600 million m3/year from Gaz de France till 2012-ig.
The gas network is still in strong progression, however the number of new connections have been decreasing in the last years. It covers 81.789 km against 22,400 in 1990 and feeds 3.52 M of consumers including 3.32 M households (respectively 1.68 M and 1.63 M in 1990); the number of cities connected to the network increased from 450 in 1990 to 2.895 in 2009. The high pressure pipes are managed by one company (FGSZ natural gas supplier), with transmission system operation license. There were ten regional gas distributors in 2009, five of them have more than 100.000 customers. The share of gas in total consumption shows a decline since 2006 and reaches 37% share in 2009, which is the fourth highest within Europe.
A law passed in 2006 states that at least 1200 Mm3 strategic natural gas storage capacity has to be available by 1st January 2010, with 20 Mm3 daily extraction capacity for minimum 45 days.
Coal
Hungary has hard coal, brown coal and lignite, out of which lignite is utilized in the highest quantity. Based on the data of the Hungarian Office for Mining and Geology the country has almost 1986 Mt black coal, 2246 Mt brown coal and 4377 Mt lignite exploitable coal stock. However, the calorific values are generally low and most of the coal used for electricity production has high sulphur content. Hungary produced 3.0 Mtoe of coal in 1999 but in ten years time (2010) this amount fell to 1.9 Mtoe. The lignite production is continuously decreasing from the middle of the Eighties an it has reached 10Mt in 2007 against 20 Mt in 1989. Domestic production, in particular in deep mining has declined for the last decades. While the market for solid fuels is fully liberalized, Government support for uneconomic mines is phased out. The coal sector is facing problems with regard to the closure of uneconomic mines.
[Hungarian Office for Mining and Geology]
Renewable energy
The share of “green electricity” has reached 6.2% in 2009 within total electricity production. About 17% increase was experienced from the year 2008 to 2009 resulting in 2660 GWh.
Increase of renewable energy utilization is important because of environmental, security of supply reasons but also the high import dependence could be reduced. The approved 2009/28/EC Directive on Renewable Energy sets binding targets on the share of renewable energy in gross final energy consumption. In the EU the target is 20% by 2020 and Hungary has to reach a rather moderate target, 13%. But the Hungarian Government set an even more ambitious target to reach 14.65%.
An energy efficiency programme was introduced in 2001 with the main objectives of promoting the use of renewable energy sources and energy saving investments. The government provides direct subsidies and soft loans for applicants. The original amount of HUF 2.5 billion (approx. 9.7 million EUR), foreseen for the implementation of the programme in 2002, has been doubled to meet the increased demand. In the year 2009, about HUF 1.7 billion non-refundable subsidy was shared between 48thousand households.
A new similar subsidy was introduced in 2010 called Green Investment Scheme. Funding is coming from CO2 quota revenues. Targeted audience is the residential sector. (See more information on Energy administration and institution site).
The main administrative body in this area is the Energy Centre, which deals with energy efficiency, renewable energy, environmental protection, and energy statistics. The primary reason for promoting increased use of renewables is to mitigate local pollution: over 13% of Hungary’s land is at least moderately polluted. Much of the pollution is due to the use of indigenous low -quality high-ash and high-sulphur coal in power generation.
A background study was written to support the development of the Hungarian Renewable Action Plan, which has summarised different existing potential estimations. The summary showed that a good estimation can be given for the long term, possibly until 2030. Hungary has 500PJ/year technical exploitable potential; however there is a great difference between the different energy sources. While biomass exceeds 200PJ/year, hydropower merely reaches 20PJ/year. Economically only 425 PJ can be exploited annually in the long run. With a sustainable use of resources it is estimated that even less, 350 PJ/yeear, may be utilised. But in this case besides the dominance of biomass also other sources appear with higher significance, such as solar and geothermal energy. In the mid term (until 2020) approximately 250 PJ of renewable energy potential could be exploited in a sustainable way.
The increased use of renewable energy sources is chiefly financed by two EU funds, the European Regional Development Fund and the European Agricultural Fund for Rural Development. Energy efficiency is financed thorough the Cohesion Fund. Within the framework of New Hungary Development Plan for 2007-2013, the European Commission approved to support energy efficiency and renewable energy investments through the Environment and Energy Operational Program. The total allocated budget (EU+Hungary) is 407 million EUR for this period. (See more information under the Energy Policy section)
Hungary has introduced a feed-in-tariff system. The obligatory feed-in and purchase price of electricity generated from waste or from renewable energy sources or by combined heat and power production are regulated by Government Decree 389/2007 (XII.23.). (See more information under the Energy Sources section)
[Energy Centre, Hungarian REAP, Hungarian EEAP]
Renewable Energy Installed Capacities
According to the Hungarian Energy Office the total generation of electricity from RES was 2662 GWh. In the Hungarian renewable energy mix biomass occupies the first place. More than 70% of renewable energy (51 068 TJ) is coming from biomass resources and firewood utilization. This is followed by biofuels (10.1%), geothermal energy (6%), renewable communal waste (5.6%), biogas (1.3%), wind (1.1%), hydropower (1.1%) and solar energy (0.2%).
Renewable based electricity generation has increased by 17% between 2008 and 2009 reaching 2661.5 GWh. Green electricity was 6.4% within total electricity consumption in 2009. The majority (77%) of green electricity was generated by using biomass resources; its volume has grown from 1812 GWh in 2008 to 2052 GWh in 2009. However the share of biomass is continuously decreasing within the renewable energy mix.
Hydropower
Current Status of Hydroelectric Energy
Hungary is one of the less mountainous countries in Central Europe, and therefore has only limited hydroelectric potential. There are all together 31 installations with a total capacity of 55MW. They have generated 228GWh electricity in 2009. There are only four commercial hydroelectric power plants in the country, Kesznyéten (Hernadviz), Ikervar, Kiskore and Tiszalok. The power plant in Kesznyéten is owned by Hernadviz Hydropower Ltd., while the Kiskore and Tiszalok power plants are owned by Tiszaviz Hydro Power Plants Ltd. A small 1.5MW capacity hydropower station in Kenyeri was financed by the Environment and Infrastructure Operational Programme and started its operation in 2009.
Hydroelectric Energy Resource Potential
Being relatively flat Hungary has limited Hydro-power potential. Rivers have 990MW theoretical power out of which 7446 GWh /year energy could be generated theoretically. On the small streams 308 GWh/year is the theoretical production. In the Renewable Energy Action Plan Hungary is not counting on large scale hydropower installations but is rather willing to support miniature size plants below 10 MWe and 100-500kWe turbines using the energy of river currents.
[Energy Centre, Hungarian REAP]
Bioenergy
Current Status of Biomass Energy
Biomass accounts for the largest share of Hungary’s renewable energy consumption. Its share within renewable energy consumption was 77% and reached 2052 GWh in 2009. Currently fuelwood combustion is the primary use of biomass. Forestry wastes and sawmill byproducts are currently burnt in furnaces to provide heat for the forestry industry but also in large scale coal co-fired power plants. Some wood is also briquetted for retail sale. Nearly 60% of logging is used as firewood and 40% goes for industrial wood processing (sawmill, pulp and paper, etc.).
Electricity generated from biogas has doubled in the last couple of years. In 2004 only 15GWh was generated but in 2009 the amount was 40GWh.
[Central Agricultural Office, Energy Centre]
Biomass Energy Resource Potential
Bioenergy can have an important role in satisfying local heat demand, but also for small or medium scale combined heat and power generation.
Wind energy
Current Status of Wind Energy
Electricity generated from wind energy was 331 GWh in 2009, accounting for 12.4% within the renewable energy mix. Wind turbine installations are obliged to obtain a license to be able to connect to the grid. Earlier in 2006, 330MW capacity was announced and licensed after a tender procedure. Out of that 176MW was realized until the end of 2009. An additional 410 MW capacity was announced in 2009, but the results are not known yet, because the tender was withdrawn.
Wind Energy Resource Potential
Based on the calculations of the Hungarian Academy of Science, Hungary has 36.000PJ/year theoretical wind potential, out of which 532 PJ/year is the conversion potential, but other estimates say that only 12 PJ could be exploited in a sustainable way by 2020. Approximately 7-8% of the land is favorable for wind energy installations and mostly the area close to the Austrian border on the north-west region.
Bearing the transmission system balance in mind, the Government estimates that 740 MW electricity could be generated from wind energy with the current storage conditions by 2020. If pumped storages are built than more electricity could come from wind energy.
The Hungarian Renewable Energy Action plan counts also on the spread of the individual systems to serve local demands. By 2020 these decentralized systems could generate 10MWe all together.
[Hungarian REAP, Hungarian Academy of Science]
Solar energy
Current Status of Solar Energy
There is no database available on the installed solar capacity, therefore only estimates can be made. 300-500 kWp is estimated for PV capacity. The largest system is over 100 kWp, but the most common capacity is 10 kWp. About 3/4th of the applications are independent and used for electricity generation at highway emergency phones, meteorological stations, safety equipments, public lighting, farm houses, electric fence, etc.
Hungary lies in the middle of a basin, on a relatively flat surface surrounded mainly by mountains, and has favorable solar conditions compared to other European countries. The number of the annual sunny hours is 1,900-2,200, and the average annual total of the incident sunshine is 1300 kWh/m2. Hungary has 1838 PJ theoretical potential and 4-10 PJ actual potential for electricity generation, but also thermal utilization can have a great significance (15 PJ/year) in the residential sector.
In case of residential buildings the use of solar collectors is more favorable and cost effective. The Green Investment Scheme provides subsidy both for solar collectors and for PV panels with 30% support intensity and an additional 10-30% can be reached with the Climate bonus system if the energy performance of the building reaches “B” or better after the renovation.
Geothermal Energy
Current Status of Geothermal Energy
Hungary has significant geothermal resources. In 2008, Hungary had an installed capacity of 350 MW with 8000 drillings.
Hungary has some of the largest reserves of geothermal energy in Eastern Europe. Approx. 30°C or higher thermal water can be found underground on more than 70% of the country’s territory. Generally, the identified resources are low to medium enthalpy, 50 C to 200 C, and more suitable for heat supply than electricity production. Because of this, there is currently no utilization of geothermal energy for electricity production. However, there has been considerable use of the low to medium enthalpy geothermal energy throughout Hungary. Current demand for geothermal energy has been for direct heating, district heating and balneology. Direct heating is most extensively used in horticulture on the Great Hungarian Plain. The majority of horticultural facilities heated with geothermal energy in the world are in Hungary. The residential and industrial demands have led to over 2000 wells currently in operation. In 2008 the share of geothermal energy within the Hungarian energy mix was 6% which means 4PJ. About ten times more heat energy is taken our form the thermal water (located close to the surface) for balneology purposes mostly without heating exploitation.
Geothermal Energy Resource Potential
The primary geothermal resource area in Hungary is the Upper Pannonian reservoir system that extends through nearly the entire country and enters some of the adjoining countries. Hungary has minimum 60PJ/year geothermal potential. To be able to produce electricity there is a need for minimum 120°C water, which is found only in 2500-3000m deep. We do not exactly know our potential, but with our current knowledge 10-11MWe can be roughly estimated. If this resource is better exploited than even 5% of the total energy balance could be covered by thermal energy utilization.
Support Mechanisms and feed-in conditions for electricity from renewable energy sources
The Feed-In Tariffs were introduced through the Electricity Act which entered into force on 1st January 2003.
The current feed-in tariffs are:
Purchase price for electricity under obligatory purchase in 2010 - PDF
Hungary has introduced a sustainable (non-central-budget-based) feed-in-tariff scheme which is guaranteed until 2020. The obligatory feed-in and purchase price of electricity generated from waste or from renewable energy sources or by combined heat and power production are regulated by Government Decree 389/2007 (XII.23.).
A license from the Hungarian Energy Office (HEO) is required to receive the feed-in tariff. The volume of electricity for which it is paid, as well as the duration of the feed-in tariff in the license is limited by the HEO, based on the project payback period. The HEO as the energy sector regulator has set up maximum limits beyond which the feed-in tariff is not applied.
In addition to the obligatory feed-in system the other solution favored by member states is the introduction of green certificates. Pursuant to Act LXXXVI/2007 on electricity ‘green certificate’ shall mean an exchangeable certificate verifying – based on a guarantee of origin – the quantity of electricity produced by energy from renewable energy sources or waste. As authorized by the Act the Government shall perform the tasks relating to the introduction of green certificates. When the required criteria are met the Government shall make a decision whether to introduce the green certificate and combined certificate system, specified by law, to replace the existing obligatory feed-in system. Hungary has not yet introduced a support system based on green certificates.
In 2009, the quantity of electricity sold in the framework of feed-in obligation grew by 12% (749 GWh) to 6920 GWh compared to the previous year. 70% (67% of total electricity sales) of the total ’support’ (54.6 billion HUF) was associated with co-generated electricity in 2009. Co-generation plants were producing 4640GWh electricity.
There are also some tax incentives for the utilization of RES like the 0% VAT on biofuels in place.
[HEO]
