renewable energy

Hungary to be in the top 5 in green energy storage worldwide by 2030, says official

green energy solar panel

Hungary is set to have the largest green energy storage capacity in the world by 2030, after China, the US and Germany, a government official said on Tuesday, also noting that its climate protection plan announced in 2020 set the goal of producing 90 percent of the country’s electricity from green, carbon dioxide-neutral sources by 2030.

“We’ve now got to the point that solar panel capacities planned for 2030 will be completed in 2024,” László György, the government commissioner for professional cooperation in economic strategic tasks, told a press conference in Nyíregyháza, in eastern Hungary.

He said various schemes had been launched to increase energy storage capacity and promote the green transition, noting 75 billion forints-worth of subsidies for households and 30 billion forints available for businesses to purchase electric cars, among other programs.

Referring to a public survey on green energy consultation the government launched recently, he said the 13-question online questionnaires can be completed by April 15. The government wants to know whether citizens support Hungary “being the leader of the energy revolution” and whether energy should be produced in an environmentally friendly way. It also wants to understand attitudes to “the domestic production and development of energy storage systems” and whether homes “should be linked to this green system”, he said.

As we wrote earlier, in the last few months, Spanish, Danish and German companies would have invested in Hungary to extend their portfolio in the skyrocketing solar power industry. However, the government introduced a new regulation which makes it almost impossible for a foreign company to invest in Hungary, details HERE.

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Featured picture: Depositphotos

Budapest Airport taking off: transatlantic flights, terminal 3 and more!

Budapest Airport

In a recent interview Kam Jandu, the CEO of Budapest Airport talked about the airgate’s plans and projections based on previous year’s data. The future is looking bright for Budapest Airport!

To put it shortly, the airport ended 2023 with flying colors, even surpassing the projections they had made beforehand. Passenger numbers exceeded 14.7 million, reaching 91% of pre-pandemic levels. The cargo volume was above 200,000 tons, indicating a 50% growth compared to 2019. The airport anticipates nearly 17 million passengers this year and 18.5 million for 2025. However, the airport is nearing its limit of capacity, which is why infrastructural expansion is crucial. Here’s what we found out about the future plans regarding the expansion.

Transatlantic flights

Kam Jandu, CEO of Budapest Airport, has talked about the current capacity of the airport and projections based on the numbers of 2023. He highlighted that as of now, a significant portion of incoming traffic is from various European cities as well as Asian regions. He said the airport is experiencing a constant traffic from Seoul, Dubai and Doha, since these popular routes have only shut down for a few months during the COVID pandemic.

There are planned flights to other Asian regions too. Especially with Hungary’s current business plans, China plays a prominent role in future ideas. Another important planned route he highlighted was a direct flight to India, where the significant market demand would justify connection. He also mentioned the expansion of direct flights to the Arab Peninsula, where Saudi Arabia has ambitious tourism plans for the coming years.

One of the main questions in this regard was the reconnection of Budapest and North America to which Kam Jandu commented the hardships that the global airline supply chain faces. He added that this severly slows the reopening of several transatlantic air channels. He hopes that the recovery in air connections will soon be true to the North American flights too.

Third Terminal

In another segment of the interview with airportal.hu, Kam Jandu talked about the foreseeable infrastructural expansion of the airport. He said the airport is already nearing its capacity and based on the current numbers, it will most likely exceed the limit by 2025. There are already plans for the construction of a Terminal 3, which would be twice as big as Terminal 2. However, construction would take around 6 long years which the airport just doesn’t have. This is why they plan to reopen Terminal 1 to provide the extra capacity, until Terminal 3 can open. The modernisation of Terminal 1 and the addition of the planned new pier could be completed in about two years, but the permitting process has slowed down construction.

The situation is made harder by the current negotiations around the airport. It slows the process, which is hardly ideal. Once Terminal 2 reaches its maximum capacity, they will have to artificially stop traffic, since otherwise the provided service quality would greatly degrade. This outcome should be avoided, especially considering the detrimental effects it would have on the country’s economy, Kam Jandu says.

Coming developments

Apart from the major long term projects, there are some “smaller'” scale expansions planned for the airport as well. The airport plans to achieve a net zero carbon emission accreditation by 2035. Since 1 January 2023, the company sources electricity exclusively from renewable sources for both its operations and airport partners.

There are plans to make significant strides towards the net zero goal in 2024. A more environment friendly waste management and the implementation of a geothermal power plant are also on the agenda. What is more, this year, they are planning the construction of a solar farm. The expansion of e-charging stations and the gradual transition into a fully electric vehicle fleet is already in progress.

This could also interest you:

  • Read more about the newest flight from Budapest Airport HERE.
  • Catch up on previous year’s data published by the airport HERE.

Orbán cabinet gets rid of foreign competitors in this skyrocketing economy branch – UPDATED

Orbán cabinet gets rid of foreign companies in this skyrocketing economy branch

In the last few months, Spanish, Danish and German companies would have invested in Hungary to extend their portfolio in the skyrocketing solar power industry. However, the government introduced a new regulation which makes it almost impossible for a foreign company to invest in Hungary.

According to 24.hu, the Hungarian state has preemptive rights concerning the solar power industry, provided a foreign company aims to buy a Hungarian firm active in the sector. The decision-maker is the energy minister, so it is almost impossible for foreign companies to enter the market.

Protectionism in that regard is not entirely new in the European Union. For example, Germany and France both protect their solar energy market, but the rules are clarified in their legal system. Therefore, there is theoretically a good chance that foreign companies might become successful there, 24.hu wrote.

In Hungary, the biggest solar plant owners are government-close businessmen. In the first position, there is a group of companies connected by their seat: 122–124 Pasaréti Street, an office building in Budapest’s prestigious Buda region. That is the headquarters of István Tiborcz’s BDPST Group. Mr Tiborcz is PM Orbán’s son-in-law.

Read also:

  • One of the richest Hungarians gave a fortune to PM Orbán’s son-in-law – Read more HERE
  • Orbán’s son-in-law wants to increase hotel prices in Hungary significantly

Government-close companies in the skyrocketing solar energy sector

Nine companies operate in the building, owned by three private equity funds (Voyager One and Two, and Central European Opportunity). However, these companies provide 2% of the entire Hungarian electricity production. All were started by Adnan Polat, a Turkish billionaire who regularly makes deals with Mr Tiborcz.

The second firm in the Hungarian market is the MVM Group. They have been acquiring solar parks one after the other in the last few years.

According to 24.hu, the majority of the ten biggest Hungarian solar power firms are not yet profitable. Their assets are worth HUF 540 billion (EUR 1.4 billion), but they were able to realise only HUF 15 billion (EUR 38 million) profit in 2022.

That is a clear sign of why that business sector is astonishingly capital-intensive.

Therefore, Hungary could make good use of inflowing foreign capital, helped even by the European Union. For example, the Spanish ID Energy Group announced last summer that they would like to buy 67 European projects with the help of a European credit fund (in the arlier version of this article we wrote erroneously that with the help of EU funds – DNH editors). In Hungary, they would like to buy a capacity of 250 megawatts, 24.hu wrote. UPDATE 2: ID Energy Group wrote us that their strategic aim was developing greenfield projects, which is their main focus concerning their ongoing projects.

24.hu wrote that the Orbán cabinet would not like competitors in the market. Therefore, the cabinet declared that the Hungarian state would have preemptive rights concerning the sector. Csaba Lantos, Hungary’s energy minister, will decide about possible foreign acquisitions. Mr Lantos came from the MET Group, a key player in the Hungarian and European energy sector.

Energy minister Lantos: Future of Hungarian industry is hydrogen

Hydrogen bus Hungary energy

Hydrogen is expected to be a dominant energy component in the future, and the Hungarian industry must be ready for related technological changes, Csaba Lantos, the energy minister, told an international conference on Thursday.

Hungary is reinforcing its energy sovereignty and wants to rely more on domestic sources such as nuclear technology and renewables, he said.

Lantos told the event organised by the Hungarian Hydrogen Technology Association in Budapest that a “solar energy revolution” had taken place in Hungary, and solar panels producing 5,600 megawatts were operating by the end of last year.

Costs and storage in relation to green hydrogen were important issues, he said, adding that this area was in the research and development phase.

Hungary’s first green hydrogen production plant was inaugurated last year, and Hungarian oil and gas company MOL’s green hydrogen plant will start production soon, he noted, adding that three green hydrogen plants will be operating in the country soon.

Meanwhile, state-owned railway company MÁV aims to put hydrogen-powered trains and buses into service within three years, János Lázár, the construction and transport minister, told the conference.

He said a ten-year, HUF 6,500 billion (EUR 17.1 billion) development plan for the MÁV-Volan railway and bus group has been submitted to the government.

Fourth hydrocarbon well starts operation in SE Hungary

The fourth well extracting hydrocarbons in Nyékpuszta, in southeast Hungary, started operation on schedule on Thursday, the energy ministry said on Friday.

The wells were opened in a bid to increase Hungary’s energy sovereignty and the security of supplies, in a conglomerate of companies with the participation of energy supplier MVM Group.

The wells have so far produced 46 million cubic meters of natural gas and 56,000 cubic meters of light oil, the statement said.

Domestic energy resources are a priority for Hungary’s government as a way to boost its energy sovereignty, the ministry said.

Hungary’s energy reserves are above 80 percent full even halfway through the heating season, the statement noted.

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Hungarian energy ministry: Solar energy capacity up at 5,600 MW in 2023

solar plant Hungary

The capacity of Hungary’s solar energy producers has grown by more than 50 percent, or 1,632 MW, to over 5,600 MW in 2023, the energy ministry said on Thursday.

The robust growth means that the capacity originally targeted for 2030 could be available this year already, the statement said. The new target for 2030 is 12 MW, it said.

Of the 5,649 MW capacity fed into the system in 2023, 3,332 came from industrial plants and 2,317 MW from households, the statement said. “Not only does the 2023 growth exceed data from all recorded years so far, but also shows that more solar plants were set up than in the years leading up to 2020 altogether,” the statement said.

The number of household solar panels has already exceeded the number forecast for 2030 by 25 percent, it said.

Read also:

Hungary backs extension of EU measure expediting renewables projects

energy solar panel

Hungary supports an initiative to extend an EU measure accelerating the process of issuing permits for renewable energy projects, but is opposed to extensions of a gas price cap and joint gas procurement, the state secretary for energy and climate policy said in Brussels on Tuesday.

Attila Steiner told MTI during a break of the Transport, Telecommunications and Energy Council’s meeting that the 180 euro/MWh gas price cap rolled out in February was a punitive measure that could result in a “very bad” countermeasure on the Russian side. Extending joint EU gas procurement beyond the end of the year paves the way for “more influence” by the European Commission, he added.

He said the EU’s gas solidarity measure requiring member states to top up neighbours’ gas supplies in case of emergency would be fair if the gas was purchased not at market prices but at the price at which it was procured.

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Groundbreaking discovery: Hungary will become Lithium great power?

lithium

Lithium is the key element in batteries. It is also used in other modern industries such as the aviation industry and glass manufacturing. Turns out MOL found a big locality of lithium in Pusztaföldvár. Could this be the big breakthrough for the Hungarian economy?

This pilot project aims to use the latest technology in the industry, making the extraction process that much more environmentally friendly. The newest method that the group is experimenting with is called separation technology. The techniques used in this industry so far were tediously long and extremely challenging for the environment. However Pusztaföldvár is prepared for the challenge, according to Archibald Schubert, MOL’s Research and Production Director.

The Lithium Project

The location was assessed by professionals since 2019 and deemed worthy of a try. The Lithium Project started with simple water sample assessments. After finding a surprising amount of lithium in Pusztaföldvár’s waters, they started to collaborate with other teams to launch the project.

The production site the teams have prepared in Pusztaföldvár is optimal for more reasons. Firstly, the obviously high lithium levels make it an extremely good site. Second, many of the workers live nearby, since Pusztaföldvár is a miner hub. There are actual miner dynasties there, with more than a century-long history, providing a steady workforce.

Modern Technologies

The above mentioned groundbreaking modern technologies differ significantly from the previously used methods. The so far widely practiced traditional technologies, such as surface mining and distillation, were affecting the nearby soil badly.

In contrast, the technology MOL is looking to test out at Pusztaföldvár is much more friendly. It takes only five steps to extract lithium from the deep water and it forms a cycle.

First, they separate the water from the oil they already extracted from existing wells. Then, they extract the produced oil, at this point the water is already in the lithium separation unit. They extract the lithium from the water. As a last step, they re-inject the water into the original layer through already existing wells. Using this new method, MOL aims to utilise their great expertise in the oil industry for the benefit of renewable energy.

The impact

This discovery might have give a very needed push to the Hungarian economy. Although experts warned that the tests determining the quality and quantity of the lithium are still ongoing, there are signs to be hopeful. A lithium mine in Hungary could mean reducing reliance on foreign sources, such as China. Lithium is gaining a more and more critical role in future technologies, which means that Hungary could potentially enter the playing field of commercial circulation and establish a presence in the market.

Read more about the Hungarian economy HERE.

Read more about how lithium is used in modern industries HERE.

Foreign minister: The two new blocks in Paks will be absolutely ‘Fukushima-proof’

Paks Nuclear Plant Hungary

The upgrade of Hungary’s Paks nuclear plant applies the most stringent safety and environmental protection standards, the minister of foreign affairs and trade said on Monday.

The two new reactor blocks being built will be protected by a doubly reinforced concrete wall structure capable of withstanding even the most severe external pressures, Péter Szijjártó told parliament’s sustainable development committee, according to a ministry statement.

“The two new blocks will be absolutely ‘Fukushima-proof’,” the minister said, explaining that the reinforced concrete structure protecting the nuclear facility was capable of withstanding external pressures even as big as a plane crash.

Initial groundwork is under way at the site, and construction permits have been obtained for several buildings, Szijjártó said. Construction of equipment with long production times is also ongoing, and a German-American joint venture is building the diaphragm wall, he added.

“I’d like to assure you that everything happening in Paks adheres to the most stringent safety and environmental protection standards,” he told the committee.

In addition to the 94 Hungarian companies involved in the project, there are American, French, German, Swedish and Austrian sub-contractors working at the construction site, he said.

Szijjártó said measures aimed at improving competitiveness and environmental protection needed to go hand-in-hand, arguing that upsetting the balance between those two objectives could do more harm than good.

He noted that Hungary’s National Energy and Climate Strategy calls for a 50 percent reduction in greenhouse gas emissions by 2030 compared with 1990 levels. Emissions, he added, had fallen by 32 percent so far, while the country was achieving “huge economic records” each year.

Hungary is one of just 20 countries that has managed to increase its GDP while reducing its harmful emissions, Szijjártó said.

Meanwhile, the minister underlined the importance of guaranteeing energy security even during the country’s transition to green energy. “This requires that we treat the green cause as a grounded issue rather than some sort of political and ideological monopoly,” he said.

Szijjártó said European Union member states were set to see a 50 percent increase in their electricity consumption by 2030.

He said nuclear energy was the only source that allowed for a safe, cheap, and sustainable way of producing energy while helping the country to stay relatively independent of the fluctuations of international energy markets.

“There’s a huge debate about this in the European Union. with member states divided,” he said. Szijjártó said that while Hungary wanted to keep the debate rational, most of the issues raised were political and ideological in nature.

Fully 65 percent of Hungary’s energy production is carbon neutral and 80 percent of that is provided by nuclear energy, Szijjártó said.

He said the ecological footprint of nuclear plants relative to their lifespans was no greater than that of carbon-neutral technologies. Also, the upgraded Paks plant will enable carbon dioxide emissions to be reduced by 17 million tonnes and gas use by 3.5 billion cubic metres annually, he added, noting that Hungary’s transport sector produces an annual 12 million tonnes in CO2 emissions, while the country’s forested areas absorb 6 million tonnes of CO2 a year.

Concerning solar power, Szijjártó said the capacity of solar panels operating in Hungary reached 4,000 MW last year, accounting for 13 percent of electricity production, among the three best ratios in the EU.

Solar power capacity has reached 5,400 MW by October this year, with over 2,100 MW generated by home solar panels, the minister said.

He said this meant that Hungary was on pace to reach a solar power capacity of 6,000 MW well before the original target year of 2030, and that it could also move up its goal of achieving carbon neutrality by 2050 to 2040.

As we wrote before: here is PM Orbán’s new ally to hack the EU: Macron and the French plutocracy, details HERE.

New bill may discourage Hungarians from using solar energy

solar plant Hungary

Energy Minister Csaba Lantos has unveiled massive changes to the accounting system for household solar panels, set to take effect next year. These new elements have the potential to discourage Hungarian citizens from using solar energy and may lead them back to gas heating. The changes were announced during the Portfolio Professional conference.

Gross Settlement

According to G7, the so-called Gross Settlement change introduces several alterations in the government’s approach to supporting solar energy for citizens. The new changes include:

  • Unused electricity generated by the solar panels and fed into the grid will be purchased at a rate of approximately HUF 5 (EUR 0.013) per kWh
  • Solar Households will be subject to a reduced quota. When the solar panel does not produce enough, these households will have to buy surplus electricity from the grid, which will cost HUF 36 (EUR 0.093) per kWh up to the annual quota limit of 2,523 kWh
  • Once the household exceeds that limit, the price will jump to HUF 70 (EUR 0.18) per kWh
  • A new HUF 75 billion (EUR 193,475,936.63) support scheme will be launched for batteries, which will store surplus electricity generated during the day. This supply can be used at night, therefore, households do not have to rely solely on charging and discharging from the grid
  • Battery support will be available for solar systems up to 4 kilowatts, and the battery capacity will be up to 8 kWh
  • Subsidies of up to 65% of the battery price will be available.

Read also: Electricity is the world’s second cheapest in Hungary!

Changes in solar energy purchase

The Hungarian government supports solar panels with a performance of up to 4 kilowatts, which generate approximately 4,800 kWh annually. However, since solar energy production can differ throughout the seasons, the government can purchase surplus electricity from households at a lower rate, such as 5 forints per kWh, during the summer when the solar production is high. Conversely, in the winter when solar panels may not meet the required demand, households will need to purchase electricity from the grid, which the government can sell at a higher rate, ranging from 36 to 70 Forints per kWh.

Thanks to the 65% subsidise, the price of a 4 kWh solar panel can be reduced from HUF 1.5 million (EUR 3,869.52) to just HUF 500,000 (EUR 1289.84). While this may seem like a good deal, the fact that households have to purchase electricity for 36 to 70 forints per kWh during the winter season and on rainy/cloudy days can discourage citizens from transitioning to solar energy. Solar panels can only produce up to 4-5 kWh in ideal conditions, which may not be sufficient for heating in winter time.

The batteries can hold up to 8 kilowatts, which is ideal for the summer use when citizens can utilise the stored energy at night. Any excess energy that cannot be stored in the battery must be sold to the electricity company. This cycle can continue throughout the summer, allowing the company to purchase the remaining energy at a low price.

This is less than ideal for households since lowering the selling price to HUF 5, even though the purchase price remains at around HUF 30, will prevent them from generating extra income for the winter season when solar panels are less efficient. The minister justified the government’s decision by saying, “we intend to encourage households to become self-sufficient not to build their own power plants”.

Read also: Fidesz MP calls for rethink of solar panels regulations

Author: István Martin Németh

Fidesz MP calls for rethink of solar panels regulations

renewable energy, investment, solar power, china

Ruling Fidesz’s parliamentary group leader has asked the energy minister to override a new European Union directive on gross settlement for solar power and restore annual balance settlements for households using solar panels in line with their original contracts.

Fidesz was given a mandate in last year’s election to protect the interests of Hungarian families, Máte Kocsis said in a post on Facebook, adding that this also meant keeping household utility prices low.

The energy crisis caused by the war and the related sanctions has resulted in energy price increases and fluctuations, he said. Under such circumstances, there is no place for families who have installed solar panels in recent years in a bid to cut their energy consumption to receive worse settlement terms because of the EU’s expectations, he said, adding that the households in question saved around 20,000 forints (EUR 52) a month on average on their electricity bills.

“It is not fair to them that the rules change on the fly, and it is not fair that their previously acquired rights are violated,” Kocsis said, arguing that at the time of installation, solar panel users had assumed different conditions for the return on their investment. But the Brussels directive wants to change these conditions after the fact, he added.

Leaked: Solar stop to end soon in Hungary

Solar Panel Napelem Construction

From the 1st of October, the Hungarian government is expected to reintroduce the possibility of feeding electricity back into the grid for small household-scale solar power plants in certain areas. According to the Hungarian Solar Panel Association president, Ernő Kiss, last year over 200,000 people indicated that they wanted solar panels. However, the actual number of applications was only 30,000.

Previous events

ATV reported that there was a big rush for solar panels last August when the Hungarian government announced the limitation of cutting utility costs. The demand for solar panels was higher than what the network could accommodate at that moment. Therefore, the government has introduced a feed-in freeze concerning small household-scale solar panels.

From the 1st of November, newly installed household solar panel owners did not have the possibility of feeding electricity back into the grid. Despite that, their energy expenses were equal to zero, at least. The provisional regulation is still in force. But the commitment to the European Union requires the moratorium on solar panels to be lifted by the 31st of December 2024. József Balogh, energy expert, told ATV:

That is good news, but what we really need is for wind farm licensing to start again, so that we can rebalance the renewable generation structure and grid development has to go on and on, either with Hungarian or EU money.

Shady business?

Hungarian Solar Panel Association president, Ernő Kiss, said that there were no technical obstacles that would prohibit feeding electricity back into the grid. According to Mr Kiss’ information, the government will reintroduce the possibility of feeding back on the 1st of October in certain areas. He added that over 200,000 people have handed in demands for solar panels. However, most of that was not real. Some people have changed their minds over time, while some have handed in their demands twice.

The Hungarian Solar Panel Association estimates roughly 30,000 demands to be real. Yet construction work has not even started. Meanwhile, distribution networks have been closed down, leaving the sector in a difficult situation. The number of household-scale solar panel installations has dropped drastically, nearing zero. According to Ernő Kiss, due to the lack of installation work, many have lost their jobs in the sector.

Zoltán Varju, an opposition politician, thinks that this situation only favours the oligarchs with a stake in gas-fired power plants. These companies will benefit from the solar panel freeze, while families are in a tough position. In addition, the solar plant expansion would be an enormous step for Hungary to reach carbon neutrality by the year 2050. The opposition politician thinks that the current government is not working hard enough to make the country less dependent on gas.

What does the future hold for solar panels?

The Hungarian Energy and Public Utility Regulatory Authority will prepare a proposal to lift the temporary restriction on feed-in for the first time by the end of August. Meanwhile, the Hungarian government is financially supporting investments in distribution companies and high-voltage grid operators.

Hungarian manufacturer of electric motors to invest in EUR 11 million solar power plant

Ganz Transzformátor és Villamos Forgógépgyártó Zrt Tápiószele

Ganz Transzformátor- és Villamos Forgógépgyártó, a manufacturer of high-performance transformers and electric motors, is installing a 2MW solar power plant at its base in Tápiószele, in central Hungary.

The company said the EUR 11 million investment had been awarded a nearly EUR 5 million government grant in the framework of the Factory Rescue Programme. Ganz Transzformátor- és Villamos Forgógépgyártó had net sales revenue of HUF 43.9 billion (EUR 115.8 million) last year, public records show.

Featured image: Ganz Transzformátor és Villamos Forgógépgyártó Zrt, Tápiószele. Wikimedia Commons

Hungarian electricity market will face negative prices?

Electricity system upgrade

In the last couple of years, Hungary has been experiencing an explosion of solar power plants. This will lead to a serious supply of energy. However, if the demand does not keep pace with the supply, it is possible that in 3-5 years, we will be experiencing negative prices.

As Portfolio writes, the huge solar power plant expansion started two years ago in Hungary. Now, the total installed capacity has exceeded 5,000 megawatts. The requests waiting to be judged would provide almost 5,000 more megawatts. Gergő Batta, Deputy CEO for Operations at MAVIR, has expressed his thoughts and feelings about the possible future. Batta thinks that it will be very important to see how many of the requests will eventually result in actual projects. Although many of them are on a business basis, not based on subsidies.

Sustainability of solar power

Solar power is a sustainable source of energy, as it is a form of renewable energy. However, according to Batta, it is still unsure if it will be sustainable financially and technologically as well. If a huge difference in supply and demand is realised, then the prices will start decreasing. We can already see the prices going down, but this process will be even more prominent. Portfolio writes that the German power exchange recently experienced a price of minus EUR 500 per MWh on a weekend day when the industrial demand was lower.

The demand might have been lower, but the strong winds and sunshine provided a high supply. It is very clear to see in Europe that the various production waves of renewable energy are dragging wholesale power prices into negative and positive territory too. Batta also said about the imbalance that in 3-5 years, it would be possible that negative prices will occur from 9 AM to 4 PM from spring to autumn when the sun is shining.

Further research and innovation

In this system, power plants will not bring any profit. During negative prices, providers would have to pay to sell electricity. Providers would only survive if they could finance and balance these losses from other sources. For example, a market for systemic services, where different energy products could be sold. However, this market change will inspire further research and innovation programmes. For example, a solution has to be worked out for storing the energy. If the prices are negative, it is worth keeping it and storing it somehow rather than having to pay to sell it. When the prices go positive again, providers could sell energy for a higher price.

Hungarian minister at talks with Chinese AIIB president

aiib

Minister for Economic Development Márton Nagy has again met with Jin Liqun, president of China’s Asian Infrastructure Investment Bank (AIIB) in Beijing, after their meeting held in Budapest last month, the ministry said on Friday.

Hungary has been a non-regional member of AIIB since 2017, the ministry added.

At the meeting the sides followed their dialogue started in Hungary concerning possibilities in infrastructure cooperation and foreign direct investment (FDI).

Nagy gave a presentation on Hungary’s FDI strategy, stating that a high investment ratio was a basis for economic growth in Hungary and FDI played an important role in it.

In line with the AIIB’s priorities, sustainability is increasingly important, and renewable energy, battery production and electromobility have become highlighted areas for working capital, Nagy said. He added that Hungary relied on China’s partnership in these areas and aimed to remain an attractive target for state-of-the-art, high-tech technologies.

New energy and climate strategy accepted in Hungary

Gas energy oil Russia Hungary

Hungary’s National Energy and Climate Plan (NEKT) is being adapted in view of the changing international environment, including measures to significantly reduce emissions and increase the ratio of renewables in the national energy mix, the energy ministry said on Friday.

The revised plan is aimed primarily at reducing Hungary’s dependence from imports while moving the country closer to achieving its goals in climate neutrality and sustainability, the ministry said in a statement. Under the revised plan, Hungary would cut gross greenhouse gas emissions by at least 50 percent by 2030. The ratio of renewable resources would be raised to 29 percent from 21 percent, and that of solar energy to 12 gigawatts .

The ministry noted in the statement that investments related to measures contained in the revised NEKT would cost a total 4,000 billion forints (EUR 10.8bn). The ministry has drafted the revised plan after several rounds of consultations with industry players and civil organisations over the past two months. Under EU regulations, member states must submit their revised national energy and climate plans by June 30 in 2024.

Hungarian baths see huge ticket price increase

Széchenyi baths in Budapest hungarian tourism

This summer, price of baths have increased by around 40 percent compared to last season. Zoltán Kántás, the president of the Hungarian Bathing Association (Magyar Fürdőszövetség) explained what to expect this summer.

He reminded that the rise in gas and electricity prices, has created challenges for spas and the tourism sector. To address this, he emphasised the importance of transitioning to alternative, renewable energy sources to reduce dependence on the market, writes Index.

Renewable systems

According to Kántás, energy efficiency improvements are necessary for long-term sustainability. To demonstrate, he highlighted examples where domestic spas have implemented renewable solutions. These include utilising methane-containing thermal water for energy or utilising waste heat and investing in energy efficiency measures. However, a long-term solution is needed to enhance spa sustainability.

The expert stressed that maintaining spas has become significantly more expensive, with costs for gas and electricity rising by tenfold in many places. This has prompted operators to implement changes, including adjusting opening hours, imposing restrictions and reviewing energy systems. Spas have embarked on major energy modernisation investments with the support of subsidies and their own resources.

Lack of guests

Notably, despite the challenging economic climate, no spa has had to close, although some may do so temporarily for renovation and modernisation work. Rising energy prices, labor costs and the cost of water treatment materials have contributed to increased expenses.

Regarding the number of guests, Kántás mentioned that the past years have been impacted by the COVID-19 pandemic. Although there are currently no restrictions, the number of guests remains below 2019 figures. The absence of foreign visitors, primarily due to the war in the neighbouring region, particularly affects spas in Budapest, where over 60 percent of visitors frequent at least one spa. The absence of Russian and Ukrainian tourists is also felt in Eastern Hungary and in Hévíz.

Rising prices of baths

Despite the increase in ticket prices, domestic baths are still competitive in terms of value for money in comparison with those found in neighbouring countries in Central and Eastern Europe.

Kántás noted that around 90 percent of domestic spas are owned by municipalities and were subject to a price increase ban until June 2022. Therefore, they couldn’t offset rising operating costs through ticket price adjustments.

The first price increase occurred in June-July 2022, but it only partially covered the increased costs. As a result, this summer, bath prices are approximately 40 percent higher than last year’s pre-season prices. However, it’s worth mentioning that small rural baths still offer adult admission around HUF 2,000, providing options for various budgets.

Hungary’s largest solar park inaugurated: it will produce enough electricity for 21 years

solar park mezőcsát

Energy Minister Csaba Lantos inaugurated a HUF 90 billion (EUR 243.5m) solar park with an annual capacity of 372 GWh in Mezőcsát, in northeast Hungary, on Tuesday.

Antal Ritter, the managing director of investor PolSolar, acknowledged the company’s Hungarian and foreign partners as well as the contractors who worked to set up the solar park, the largest in the region, “on time and on budget”. PolSolar financed the project with its own resources and proceeds from a bond issue, he added.

Extor Energy will operate the solar park with the support of Alteo.

Speaking at the inauguration, Minister of Energy Affairs Csaba Lantos said the government’s “most important task” was reducing the country’s energy dependence. He noted that Hungary imported 76 percent of its energy.

This amount of energy is sufficient to meet 21 years of energy consumption in Mezőcsát. The installation of the solar farm could reduce the country’s carbon dioxide emissions by up to 130,000 tonnes a year, according to a statement sent to MTI.

Electricity suppliers to receive EUR 155 million to build and complete storage facilities

wind electricity

Electricity providers will be offered grants totalling 58 billion forints (EUR 155m) to build and complete storage facilities by mid-2025, the energy ministry said on Wednesday.

According to a statement from the ministry, the scheme is aimed at increasing the security of supplies and boosting renewable energy sources such as wind and solar power.

The new facilities will be fully integrated in the national grid, and are expected to double the current integrated storage capacity to a total of 146 MWh.

The ministry also said winning bidders will be selected before the end of this year. The new projects will promote a low-carbon-emissions economy, the transposition to environmental and digital service provision, while contributing to Hungary’s energy sovereignty, they added.

Battery-based storage facilities will also partially compensate for fluctuations in the output of solar and wind plants, the statement said.

As we wrote before, the mayor urged “bureaucratic obstacles” in the way of generating solar and wind energy, details HERE.