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Dr. Andor Nagy MP, Hungary Vice Chairman of the Environmental Committee
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The Challenge for a European sustainable energy policy
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I. 2008 The year of crisis
What is the impact of the crisis?
Crisis are motivating the changes
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II. The Hungarian energy sector
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II. The Hungarian energy sector
The two main characters of the energy sector
1./ total dependence on Russian import
2./ supporting system
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III. The Hungarian energy dependence on import
- 2007: the total energy dependence on import in Hungary more than 73%
- 2020: more than 85%, according forecast of the accepted Hungarian Energy Policy
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III. The Hungarian energy dependence on import
In today's Russia, energy is itself the tool of influence. To use it the Kremlin needs three things: control over Russian energy reserves and production, control over the pipelines snaking across its territory and that of its neighbours, and long-term contracts with European customers that are hard to break. All three are in place. For all the talk of a common strategy towards Russia, the EU is divided and stuck for an answer.
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III. The Hungarian energy dependence on import
The Eastern and Middle European
socialist inheritance
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IV. The Hungarian energy supporting system
What does it mean in
the Hungarian reality?
- The Hungarian state spend much
more money to the social subsidies on energy as to the renewable energy
- 2007: the total cost of the social subsidies in the energy prizes: more than 320 million EUR
- 2007-2013: the total cost of the subsidies of the renewable energy sources: 253 million EUR
- 2007-2013: the total cost of the
subsidies of energy efficiency: 154 million EUR
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V. The RES in Hungary
3 September in 2008. the Hungarian Government approved the Hungarian Renewable Energy Strategy (2008-2020)
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V. The RES in Hungary
The share of RES in the
gross final energy consumption was 4.3% in 2005.
Today, the most important renewable energy source is biomass, representing 90% of all RES production
Hungary has fantastic opportunities for the use of geothermal energy
Breakdown of renewable energy sources in production
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V. The RES in Hungary
- Hungary is blessed with a
wealth of natural resources for biofuel, biomass, biogas, geothermal, wind and solar energy
- the share of renewables in the energy mix is relatively low at present
- Hungary enjoys huge potential for renewable energy use, especially in the area of photovoltaic, biomass and geothermal energy production
Maximum renewable energy potential (PJ)
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V. The renewable energy in Hungary Hungary’s targets
for renewable energy production
1./ RES in energy production 2020
11%-16%
2./ Renewable electricity production 2020
186 PJ
3./ Renewable heat production 2020
87 PJ
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Accessible targets by the Hungarian Energy and Environment Operation al Program (2007-2013)
2007 2010 2013 2015
Growth of the RES based elecricity production
GW/year 0 676 967 1170
Accessible targets the share of RES in the Hungarian energy consumption by the KEOP
% 0 2,6 3,3 3,4
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VI. Conclusions and recommendations
- The EU target for Hungary 13% is achievable but more potential
- As for Hungary it is a national interest to have a common European sustainable energy policy
- More ambitious goals are needed at the national level
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VII. What to do?
1./ More subsidies from state and EU Funds
2./ Remove administrative burdens in the permit process
3./ Enhance intensity of support4./ Green card for buildings, fix price not
just for electricity but also for biogas, heating and cooling from RES
5./ More support in R&D for RES6./ Tax reduction for biofuels
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VII. The result
1./ New technologies2./ Innovation3./ Creating added value and
employment4./ Reduction of CO2 emissions
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Thank you for your attention!17