Hungary lies on hidden treasure, yet this huge energy source remains largely untapped

Hungary holds an outstanding position within Europe regarding energy sources: the Carpathian Basin is rich in geothermal heat, providing the country with an invaluable asset. Although Hungary utilises a significant portion of its geothermal reserves, experts suggest that the state could play a much more active role in exploiting the untapped potential beneath our feet.

Energy lawyer Máté Tóth spoke to Economx about the unearthed treasure beneath Hungary, pointing out that although the country is at the forefront of geothermal energy use in the region – geothermal heat production has quadrupled since 2010, placing Hungary among the top five European countries in terms of geothermal energy use – there is still ample room for improvement in overall thermal energy production.

The country is in a favourable position, the expert said, because the ground temperature rises quickly, the heat flow is strong, and the thickness of the earth’s crust is about half the continental average, making geothermal energy relatively easy to extract.

The energy source is there, now it needs to be used properly

Energy expert Gábor Simon echoed similar views, noting that greater use of geothermal energy could be an important element in diversifying Hungary’s energy profile. However, Simon added that uncertainties around changes in legislation and regulations make it difficult to launch new projects.

Moreover, other constraints limit investment in the sector. Technological, economic, sustainability and social issues remain unresolved when it comes to the geothermal energy sources beneath the country. Thus, in addition to clarifying the legal framework, innovation and R&D are two other key areas that need to be stimulated for effective exploitation.

However, this requires state intervention. As Máté Tóth put it, “Greater public involvement is the key to the recovery of the geothermal industry, as the market alone cannot manage such risks and costs at the scale and pace required.”

The state needs to drill and get involved in projects, and at the same time, it needs to shoulder some of the costs and risks of investing in geothermal systems, concludes Economx.

Geothermal power plant in Iceland. Source: depositphotos.com

Positive signs for the future

The experts listed several positive governmental steps in the recent past for the proper utilisation of this energy source. Besides grant funding and the creation of the Geothermal Investment Loan, an industry-targeted credit line, the state launched the geothermal research programme as part of the existing Climate and Conservation Action Plan, a future geothermal heat pump installation programme, and established the Geothermal Energy Commission as a professional body overseeing these matters.

Nonetheless, Gábor Simon pointed out that “with the many projects that already require large amounts of funding (nuclear and renewable expansion, grid development, boosting energy storage), it is questionable what resources will actually be available for the geothermal sector.”

Geothermal energy could be an alternative to gas heating

Earlier this year, hydrogeologist and university professor Judit Szőnyi Mádl told Index that the yet-untapped Hungarian energy sources could be used for heating and cooling, stressing that “the huge potential of geothermal energy could play a major role in the future of every Hungarian town”.

However, she also added that geothermal heat can only be a feasible alternative to gas if economically and socially sustainable systems are developed. This, in turn, requires comprehensive infrastructural planning at the municipal level, the thermal insulation of buildings, significant awareness-raising about the projects, public support, and extensive research and development.

Read also:

• EU’s biggest geothermal system is built in Hungary! – HERE
• Russian gas purchases by Hungary still staggeringly high compared to other EU countries – Read HERE

Source: Economx