R cleantech finland bd to hungary - hungarian energy market by finpro debreczeni - november 8 2010


Published on

Overview on Hungarian Energy Business

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

R cleantech finland bd to hungary - hungarian energy market by finpro debreczeni - november 8 2010

  1. 1. Attila Debreczeni, Senior Consultant<br />Finpro CSE & ME,<br />5 November, 2010<br />Hungarian Energy Market<br />
  2. 2. Contents<br />Pages<br />Key Energy Market Data 3<br />Energy Policy 4-5<br /> Strategy & Key Priorities<br />Upcoming Regulatory Changes & Planned Actions<br />Power Generation 6-9<br /> RES (forestry, agri) potential & usage<br />Electricity Generation 10-12<br />Feeding tariffs <br /> Distribution<br />Heat Generation 13-16<br />District Heating <br />Housing – as “Panel program”<br />Appendixes: Major players in energy market 17-25<br />
  3. 3. Key Energy Market Data<br />© Finpro<br />3<br />Source: BMI energy report 2010; Short,-Middle,-Long-term capacity balance on supply side in Hungarian electricity system (Mavir,2009)<br />
  4. 4. Energy Policy 1/2<br />© Finpro<br />4<br />Strategy: <br />The only official strategy document is the Parliament Order /40/2008. (IV. 17.)/ on Energy policy in 2008-2020;<br />There is no Hungarian Parliament certified Energy Strategy, however Hungarian Energy Policy until 2030 as strategy paper is under preparation and to be accepted by Parliament at the end of 2010;<br />The Renewable Energy Action Plan until 2020 is under preparation which had to be submitted to EU even June 2010 (still in delay);<br />Key Priorities: <br /><ul><li>Compulsory Targets to EU</li></ul>Energy saving 1% annually in 2008-2016 (total: 9%)<br />Share of renewable energy in primer energy usage: 13% from total  136 – 186 PJ<br />20 % improving of energy efficiency<br />Modified emission trading system from 2013. Less grant, more auction. <br />
  5. 5. Energy Policy 2/2<br />© Finpro<br />5<br />Upcoming Regulation:<br /><ul><li>Due to the new Government and organisational changes at relevant Ministries, several internal planning / workshops / strategy document preparations are dealing with energy policies, including regulations. The following major topics can be highlighted:
  6. 6. Growing share of RES within power & heat generation;
  7. 7. RE heat generation in the Hungarian district heating systems;
  8. 8. Changes in feeding tariffs: CHP less support and subsidies shifted toward RES;
  9. 9. Implementation modes & selected technology of the new 1 or 2 blocks at Paks Nuclear PP;
  10. 10. The current experiences and role of the newly launched (20/7/2010) the HUPX Hungarian Power Exchange – www.hupx.hu</li></ul>Planned Actions<br /><ul><li>Energy Policy until 2030 and Renewable Energy Action Plan until 2020 are under preparation. Most likely the strategy documents will be published at the end of 2010.</li></li></ul><li>Power Generation 1/2<br />© Finpro<br />6<br />Around 9,300 MW installed capacities in Hungary, <br />Paks Nuclear Power Plant with 2,000 MW – as basic PP<br />MatraiPP– www.mert.hu with 840 MW net installed capacities with 10% RES share – as basic PP<br />The utilization rate of PP over 50 MW in Hungary was 45.8% (3,995 h/a) in 2009 while 50.7% (4,410 h/a) in 2008;<br />The main power plants (over 50 MW) were built in late 60s` & early 70s`, operating with old technologies (boilers) & even after their “retrofit” program with low efficiency as 25-30%;<br />Hungary’s power generation sector is notable for the widespread use of combined heat and power (CHP) since 2000-2001. Due to the big lobby power of CHPs, they are part of feeding tariff systems with a share of 65-70%;<br />According to the current legislation, the Feeding tariff system (KÁP budget) will be in force until 2015;<br />Since 20/7/2010 the HUPX Hungarian Power Exchange Company Limited by Shares, HUPX Ltd. has started its operation – www.hupx.hu<br />
  11. 11. © Finpro<br />7<br /> Power Generation (>50 MW, 2009)2/2<br />Mátrai Power Plant <br />www.mert.hu<br />Location: Visonta<br />Type: CHP<br />Installed capacity: 841 MW<br />Efficiency: 31.8%<br />Expected to stop operation: 2026- 2030<br />AES Borsodi Energetikai PP<br />www.aes.hu/intro.html<br />Location: Kazincbarcika<br />Type: CHP<br />Installed capacity: 288 MW<br />Efficiency: 34.2%<br />Expected to stop operation: 2013- 2016<br />Dunamenti Power Plant <br />www.electrabel.hu<br />Location: Százhalombatta<br />Type: CHP<br />Installed capacity: 1,673 MW<br />Efficiency: 39.6%<br />Expected to stop operation: 2011- 2023<br />Alpiq Csepeli Erőmű<br />www.csepel.alpiq.hu<br />Location: Csepel (Budapest)<br />Type: CHP<br />Installed capacity: 386 MW<br />Efficiency: 50.6% <br />Expected to stop operation: 2025- 2026<br />Tisza II. Power Plant<br />www.aes.hu/intro.html<br />Location: Tiszaújváros<br />Type: Electricity only<br />Installed capacity: 860 MW<br />Efficiency: 36%<br />Expected to stop operation: 2016- 2018<br />Vértesi Power Plants<br />www.vert.hu<br />Location: Oroszlány<br />Type: CHP<br />Installed capacity: 224 MW<br />Efficiency: 27.7%<br />Expected to stop operation: 2013- 2014<br />MVM GTER Lőrinci<br />www.gter.hu<br />Location: Lőrinci<br />Type: Electricity only<br />Installed capacity: 407 MW<br />Efficiency: 30%<br />Expected to stop operation: 2026- 2027<br />Bakonyi Power Plants <br />http://www.mvm.hu/engine.aspx?page=bvmt_fooldal<br />Location: Ajka<br />Type: CHP<br />Installed capacity: 88 MW<br />Efficiency: 45.8%<br />Expected to stop operation: 2014- 2016<br />Debrecen KCE Power Plant<br />Location: Debrecen<br />Type: CHP<br />Installed capacity: 93 MW<br />Efficiency: 69.7%<br />Expected to stop operation: 2026- 2028<br />Budapesti Power Plants<br />www.budapestieromu.hu<br />Location: Budapest<br />Type: CHP <br />Installed capacity: 399 MW<br />Efficiency: 69.1%<br />Expected to stop operation: 2026- 2027<br />Paksi Nuclear Power Plant<br />www.atomeromu.hu<br />Location: Paks<br />Type: Electricity only<br />Installed capacity: 1,940 MW<br />Efficiency: 31.4%<br />Expected to stop operation: 2032- 2037<br />Pannon Power Plant<br />www.pannonpower.hu<br />Location: Pécs<br />Type: CHP<br />Installed capacity: 122 MW<br />Efficiency: 68.9%<br />Expected to stop operation: 2014- 2016<br />ISD Power<br />www.isdpower.hu<br />Location: Dunaújváros<br />Type: CHP<br />Installed capacity: 58 MW<br />Efficiency: 67.6%<br />Expected to stop operation: 2017- 2019<br />
  12. 12. © Finpro<br />8<br />RES potential: Fire woods & residues 1/2<br />Annual Cutting: 6 - 7 mill. m3<br />Import: 1 – 1.1 mill. m3<br />Export: 0.25 – 0.3 mill. m3<br />Annually available wood: <br />6.75 – 7.8 mill m3<br />Stolen woods : 0.2 – 0.3 mill. m3<br />Residue : 1 - 1.4 mill. m3<br />Fire-wood: 2.5 – 2.8 mill. m3<br />Industrial wood: 2.7 – 3.1 mill m3<br />Households <br />collections:<br />0.3 -0.4 mill. m3<br />Power Plants:<br />1 – 1.3 mill. m3<br />Smaller players:<br />1.2 - 1.5 mill. m3<br />Households:<br />1 -1.5 mill. m3<br />Major players (3):<br />1.8 – 2 mill. m3<br />Forestry potential in Hungary<br />1.09<br /> mill m3<br />0.73<br /> mill m3<br />0.48 <br />mill m3<br />0.73 <br />mill m3<br />1.22<br /> mill m3<br />0.73<br />mill m3<br />1.28<br /> mill m3<br />Source: Ministry of Rural Development, 2009 & <br />Finpro research<br />
  13. 13. © Finpro<br />9<br />RES potential: Agri-fuel 2/2<br />Agro-biomass potential in Hungary<br />5.2 mill. Tons<br />I.<br />1.5 mill. tons<br />2 mill. Tons<br />0.8 mill. tons<br />2.5 mill. tons<br />4.5 mill. Tons<br />III.<br />4.9 mill. Tons<br />II.<br />Annual total: 21,4<br />Source: EnergyCenter, Energy Club, 2008<br />9<br />
  14. 14. Electricity Generation<br />© Finpro<br />10<br />Source: BMI energy report 2010<br />
  15. 15. © Finpro<br />11<br />Feeding tariff system<br />Current Incentives<br />
  16. 16. © Finpro<br />12<br />ELMŰ<br />ÉMÁSZ<br />TITÁSZ<br />ÉDÁSZ<br />DÉDÁSZ<br />DÉMÁSZ<br />Electricity Distribution<br /><ul><li>The electricity market is privatised since 1995.
  17. 17. Electricity service providers/distributors:
  18. 18. Six distribution area were created, including Budapest the capital and its suburb area (ELMÜ);
  19. 19. German & French energy companies are the owners;
  20. 20. In 2008 total domestic electricity use was 43,928 GWh, exceeding volume in 2007
  21. 21. (43,904 GWh) by (0,1%). Net consumption (37,398 GWh) grew by 0,4 % compared to 2007 (37,247 GWh). The peak load of the Hungarian electricity system in 2008 occurred on January 09 at 17:00 and was 6,388 MW.</li></li></ul><li>Heat Generation<br />© Finpro<br />13<br />Heat market<br />~ 490 – 500 PJ<br />Industrial heat<br />~ 92 – 94 PJ<br />Heat for households<br />~ 330 – 335 PJ <br />Decentralised market<br />~ 302 – 305 PJ<br />District heating market<br />~ 28 – 30 PJ<br />Source: Expert`s interviews, Energy Book of Hungary, 2009<br />
  22. 22. © Finpro<br />14<br />District Heating 1/2<br />
  23. 23. © Finpro<br />15<br />District heating market 2/2<br />Budapest DH<br />www.fotav.hu<br />No. of heated units: 240.958<br />Avg. total cost of end-users: EUR 637<br />DunaújvárosDH <br />www.dvcsh.hu<br />No. of heated units: 19,181<br />Avg. total cost of end-users: EUR 708<br />Miskolc DH<br />www.miho.hu<br />No. of heated units: 31,487<br />Avg. total cost of end-users: EUR 623<br />Győr DH<br />www.gyorho.hu<br />No. of heated units: 23,841<br />Avg. total cost of end-users: EUR 544<br />Nyíregyháza DH<br />www.nyirtavho.hu<br />No. of heated units: 15,649 + 413<br />Avg. total cost of end-users: EUR 603<br />TatabányaDH<br />www.tata.hu<br />No. of heated units: 22,636<br />Avg. total cost of end-users: EUR 704<br />Székesfehérvár DH<br />www.szepho.hu<br />No. of heated units: 20,550<br />Avg. total cost of end-users: EUR 598<br />Debrecen DH<br />www.dhrt.hu<br />No. of heated units: 30,895<br />Avg. total cost of end-users: EUR 618<br />Szeged DH <br />No. of heated units: 27,249<br />Avg. total cost of end-users: EUR 708<br />PécsDH<br />www.petav.hu<br />No. of heated units: 31,160<br />Avg. total cost of end-users: EUR 545<br />
  24. 24. 16<br />Housing - as“Panel program”<br />A significant part of the Hungarian housing stock is in need of rehabilitation because of both material and social challenges. The degree, focus and quality of the necessary rehabilitation differ from region to region. <br />A constant expansion of the panel program has taken place in the last few years and its beneficiaries are not only the housing estates, but every tenant community occupying a building constructed with pre-fabricated technologies.<br />Around 750,000 panel housing units and until 2008, the 25% of this stock have been renovated to some degree, generating on average investments per unit as 700th HUF (~2,600 EUR). However, until 2010 the number of renovated buildings grew up to 1/3 of the total stock. <br />The degree of renovation is very basic and comprises mainly <br />Building isolation;<br />Changing the joinery (windows, doors, etc.);<br />Measuring (adjusting) units for the regulation of the temperature, however, the whole system (old Russian style panel blocks) has not been changed.<br />Sources: Expert`s interviews, European Commission, Housing <br />Needs in Hungary (Varoskutatas Kft)<br />© Finpro<br />
  25. 25. © Finpro<br />17<br />Appendix 1/9<br />
  26. 26. © Finpro<br />18<br />Appendix 2/9<br />
  27. 27. © Finpro<br />19<br />Appendix3/9 <br />
  28. 28. © Finpro<br />20<br />Appendix 4/9<br />
  29. 29. © Finpro<br />21<br />Appendix 5/9 <br />
  30. 30. © Finpro<br />22<br />Appendix 6/9<br />
  31. 31. © Finpro<br />23<br />Appendix 7/9<br />
  32. 32. © Finpro<br />24<br />Appendix 8/9<br />
  33. 33. © Finpro<br />25<br />Appendix 9/9<br />