renewable energy

Is this how Hungary might escape the energy crisis?

geothermal energy

With the current energy crisis, it is vital that Hungary uses its thermal water resources more efficiently. The government supports the sustainable utilisation of thermal water, in addition, the European Union also wants to give a more prominent role to the use of thermal energy as a replacement for fossil energy.

Governmental support for rural development

The 11th Hungarian Paprika Day in Szentes was the largest and most popular paprika event of all time, reports magyarmezogazdasag.hu. Tamás Tarpataki said in his presentation that, thanks to the 80 percent domestic co-financing of the rural development programme, compared to the previous EU cycle, the amount of funds available for rural development will increase by three times, to HUF 4,265 billion (EUR 10.6 million). The government aims to make farming a profitable and socially recognised occupation. In addition, they would like agriculture to become attractive to young people. The Ministry of Agriculture plans to make the regulation and support system simpler and more transparent. 

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The European Union has increased the budget, too

It is not only the Hungarian government that is funding the rural development programmes, but also the EU. In the new EU budget cycle, they announced HUF 30 billion (EUR 74.62 million) budget for the modernisation of horticultural plants, but given the extraordinary interest, this was increased to HUF 68 billion (EUR 169.1 million), writes piacesprofit.hu. Thanks to the planting subsidies, around 2,600 new modern plantations can be created, and HUF 26 billion (EUR 64.6 million) can be spent on the purchase of machines and equipment. For these developments, the EU requirement is to reduce water consumption by 10-15 percent. The deputy state secretary also explained that in the case of these developments, the amount of support is 50 percent, but they can provide 70 percent for irrigation communities.

Read alsoSzeged is the first in Hungary to switch to geothermal energy

Is thermal energy the solution for the crisis?

Based on the data of the National Energy and Climate Plan (NEM), only 10-15% of Hungary’s geothermal potential is currently utilised. The NEM aims to encourage the use of renewable energy sources. Moreover, they plan to significantly increase the share of energy production, and explore the locations of geothermal production projects in the state research programme. The European Union may give a prominent role to the use of thermal energy as a replacement for fossil energy. The government took the initiative to change the deadline for achieving good water status to 2027. This was necessary so that sufficient time would be available for those using thermal energy already in operation to transform their water extraction and drainage according to sustainable rules, or to ensure the appropriate disposal of water.

Szeged is the first in Hungary to switch to geothermal energy

In Hungary, the first geothermal heating system will be installed in Szeged. It can provide heat for 28,000 homes and 500 institutions with renewable energy. The European Union sees this as an example to follow in the future.

Szeged District Heating Company (SZÉTÁV) won an EU tender in 2019. With a total of nearly HUF 20 billion (EUR 48,6 million), it built 9 geothermal thermal circuits. This geothermal thermal circuit provides hot water and heating for public institutions and district-heated homes using renewable energy, impressmagazin.hu reports.

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The trial operation started in the 2021 heating season. At that time, only the first four elements of the 9-part system were completed. Now, 5 more elements are being installed in 5 more neighbourhoods. The share of geothermal energy in total district heating in Szeged will be 50 percent.

As a result of the project, the city will be able to replace nearly 15 million cubic metres of burnt natural gas with renewable energy annually. This development is currently the largest geothermal district heating project in Central Europe. It is the second largest geothermal district heating system in Europe after Reykjavík.

According to experts, the transformation of the district heating system in Szeged could be a model for EU countries to follow, Index.hu reports. This requires cities to have adequate geothermal energy sources.

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Hungarian radical party: Forests are more than an energy resource

Forestry

The opposition Mi Hazánk party has called on the government to reconsider its stance on tree-felling aimed at making up for anticipated energy shortages, arguing that the forest is more than a source of energy.

The radical party’s deputy leader, Dávid Dócs, told a press conference on Monday that experts cautioned that the recent government decree on stepping up the production of firewood may cause severe problems in the long term, leading to intensifying droughts among other harms.

“Forests are life-sustaining resources in the long term, not an energy resource,” Dócs said, adding that the government should have prepared contingencies for an energy crisis instead of “stumbling” as it was now doing.

He said the government should make up for energy shortages by using renewables such as biogas power plants and river dams, adding that the latter could help to solve water shortages as well as energy shortfalls.

This Hungarian city might serve as model how to replace Russian gas

MOL refinery in Százhalombatta russian oil

In Hungary’s third largest city, Szeged, hot water from deep underground is being channelled to produce energy and heat for thousands of households. Can this alternative replace Russian gas?

Geothermal energy

“Geothermal energy is local, accessible and renewable so why not use it.” geologist Tamás Medgyes told AFP. According to experts, Europe’s biggest urban heating system overhaul can serve as a model for other cities in the EU that are trying to disconnect themselves from Russian gas, which has become increasingly uncertain due to the war in Ukraine. Szeged, with a population of 160,000, is one of the 12 Hungarian cities that already partially use geothermal energy. – writes Index.

Szeged will heat 27,000 apartments

Luckily for residents of Szeged, this energy provides heat for 27,000 apartments and 400 non-residential consumers. For heating, 27 thermal springs and 16 thermal power stations will push water heated with geothermal energy through the 250-kilometer pipeline system.

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A model to follow

Originally, the Szeged district heating system was designed for gas-based heating. It is no coincidence that Russia provides 65 percent of Hungary’s crude oil needs and 80 percent of its natural gas needs. Only recently have they started drilling and found the thermal springs underneath the city. The total value of the project is about 50,000,000 EUR, however, part of it is covered by EU funds. Not only Szeged can achieve this, but also French, German, Italian or Slovakian cities can use their thermal water sources. According to experts, roughly 25 percent of the EU’s population lives in an area where the heating of apartments could be solved with geothermal energy.

Reduce emissions by 60 percent

Balázs Kóbor, the director of the district heating company Szetáv in Szeged, started working long before the outbreak of the war in Ukraine on how cities could utilise the heat of thermal waters. Finally, in 2015, together with Medgyes, the municipality commissioned him to prepare the utilisation of renewable energies in the city’s heating system. “Every year, we burned around 30,000,000 cubic meters of natural gas to heat the city, releasing 55,000 tons of carbon dioxide into the air.” – he says. Therefore, one can say the city itself causes the biggest pollution. However, if the city were to switch from natural gas-based heating to geothermal, it would reduce emissions by 60 percent.

Read alsoFilling up gas reserves key to economic stability

LMP puts forward green proposals to tackle energy, climate crisis

Opposition Politician Máté Kanász-Nagy

Opposition LMP has put together a package of green proposals aimed at tackling the energy and climate crisis, Máté Kanász-Nagy, the party’s co-leader, said on Thursday.

The package includes lifting all bans and restrictions on the installation of renewable energy systems, he told a press conference. Kanász-Nagy noted the ban on the construction of wind farms in Hungary “even though there’s a need for wind power”.

LMP is also calling for the launch of a building insulation scheme based on social considerations, geared towards those with below-average income, he said.

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The package also includes a subsidy scheme for the installation of renewable energy systems which would help cut utility costs, Kanász-Nagy said.

He also urged the immediate introduction of a “climate pass” for public transport.

Meanwhile, Kanász-Nagy called on the government to scrap the upgrade of the Paks nuclear plant, saying that “every forint spent on the project is money out the window”.

He said Wednesday’s announcement that caps on household electricity and gas prices will be limited to average consumption levels was an “admission on the government’s part that they completely wasted the last 12 years”.

“The energy crisis wasn’t a question of if, but when,” he said, adding that a transition to renewable energy sources could have prevented its harmful effects.

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Filling up gas reserves key to economic stability

Uncertain energy supplies, high energy prices and inflation are currently the greatest threats to European economies, and so filling up natural gas reserves will be key in the coming months, Finance Minister Mihály Varga said in Brussels on Tuesday.

Speaking to Hungarian journalists after a meeting of EU finance ministers, Varga said energy security would become even more important with the onset of autumn and winter.

Hungarian reserves now stand at 36 percent, he said, adding that the government had placed orders for further purchases.

Concerning Europe becoming independent of Russian energy, Varga said “it won’t happen overnight … however the economies will have to keep running”.

Zsolt-Hernadi-CEO-of-MOL-CEO-of-C-Europes-largest-fuel-company
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On another subject, Varga said Hungary fully supported the Czech EU presidency’s goal to guarantee energy security for the whole of Europe. The Hungarian government also supports efforts to increase Europe’s defence capabilities and protection of the EU’s cyberspace, he added.

Varga said an EU debate on the financing needs of post-war reconstruction in Ukraine was too early, but added that the Hungarian government was ready to help “should that country at war need further financial assistance”.

Answering a question on the global minimum tax, Varga said the government would try and convince its partners that “amid a wartime crisis implementing tax hikes seriously impacting competitiveness and the labour market is not good”.

Varga said he hoped that the EU and the Hungarian government were “in the last phase” of talks concerning economic recovery funds to Hungary, and that those talks would be concluded in the autumn. This, he said, is “equally important for Hungary and the European Union”.

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Make life more convenient with a portable solar power generator  

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Portable solar power generators are an exciting addition to the lineup of products that were traditionally filled by gasoline-powered models. Solar generators act as an environmentally friendly alternative and can be used as a backup source of power in several scenarios, requiring only minimal maintenance and lasting virtually a lifetime.

While these units demand a substantial upfront investment, they more than make up for it by requiring extremely low running costs. In the following article, we take a look at how a portable solar power generator can help you make your life more convenient and whether or not they actually save you money in the long run.

Advantages of portable solar power generators

  • Versatile

One of the biggest advantages of portable solar generators is that they can be used in various scenarios. A solar generator works by converting solar energy into direct current and storing the same in lithium-ion batteries, where an inverter then converts it into usable alternating current. These generators can be used to run small appliances and recharge your devices on a camping trip, or you can opt for larger wattage devices that can run an RV camp and the appliances for off the grid living.

  • Lightweight

The most often talked about disadvantage of traditional gas-powered generators is that they are bulky and hence, difficult to carry around. A solar generator uk, on the other hand, is compact and can be easily deployed as a backup power source anywhere required. You can easily carry around a portable solar power generator on camping trips, road trips, or to events where you need a backup source of power with ease.

  • Cost-efficient

Compared to full system power generators, portable solar generators are significantly cheaper and you can find a small solar generator for a fraction of the cost. Moreover, these units do not contain moving mechanical parts and do not depend on fuel, meaning the cost of running a portable solar generator does not depend on fluctuating volatile gas prices. As a result, portable generators are cheaper in the long run and provide free electricity as long as you own them.

  • Green source of energy

Solar generators are an eco-friendly alternative to gas-powered generators as they do not rely on fossil fuels for generating power. Using a renewable source of energy means that you do not have to worry about the environmental impact of using this power generator. These units do not use any harmful chemicals and oils, and also do not release pollutants when generating power, allowing you to use them on camping or boating trips without worrying about harming the environment in any way.

  • Safe to use

Unlike gas generators, solar generators do not release carbon monoxide fumes as a byproduct. These gases are known to be very harmful to human health and hence traditional generators have to be used outside in well-ventilated areas to avoid any issues. On the other hand, solar generators are safe to use anywhere as they rely on a clean source of energy and release no fumes, meaning they can be used inside camps close to people. In fact, if you own an RV, you can install a solar power generator inside the van and run your appliances directly.

  • Low maintenance costs

As discussed earlier, portable solar-powered generators contain almost no moving mechanical parts. Consequently, there is a lesser chance of these devices breaking down and hence, do not require rigorous maintenance. You do not need to change consumables, which further reduces the running costs. You will never have to worry about expensive repairs and replacement parts. All you need to do is diligently follow the maintenance tips provided along with the unit and clean the generator from time to time. 

  • Quiet operations

Another benefit of no moving mechanical parts is that these generators are inherently quieter when producing power. If you are purchasing a portable solar-powered generator for camping, you can rest assured that you will not be disturbing your environment by running a noisy generator. Moreover, you can also find completely silent solar power stations that can be used indoors and outdoors, making them exceptionally useful for emergencies without drawing attention from your neighbourhood.

  • Self-sustainable

Unlike a gas-powered generator, solar power stations are completely self-sustainable. If you need a generator that provides uninterrupted power, a solar generator is a device you will want to purchase. Once they have been charged to full capacity, a portable solar generator will keep recharging as long as the sun is up, making them perfect for scenarios where you need continuous power output without having to worry about running out of juice.

  • Reliable source of energy

As long as the sun is up, a solar energy generator provides uninterrupted power throughout the day. When paired with batteries of appropriate sizes, these power stations can be used as a reliable source of backup power in case of sudden power outages. If you reside in an area that suffers from unpredictable power outages, you can use this power station to keep your devices recharged. Similarly, on camping and road trips, you can recharge your navigation devices and not worry about getting lost in unfamiliar regions.

  • Various options available

Lastly, there are a large variety of portable power stations available in the market, offering users the flexibility to choose a unit that matches their requirements. You can choose a smaller capacity solar generator if you only need a backup power source for temporary requirements. On the other hand, you can opt for large watt units that can power your devices for a longer duration.

When choosing a portable solar power generator for your needs, you need to make sure that the model you buy meets your energy requirements. You can find an estimate of your energy needs by adding the power consumption of all the individual devices you plan on using on your camping trip; you will need to choose a portable power generator that can comfortably meet your energy needs.

Government: Russia delivers 85 pc of the gas consumed in Hungary

gas energy kitchen

The government is fulfilling environmental targets while boosting competitiveness, an official of the ministry of technology and industry told Mediaworks in an interview, published in daily Magyar Nemzet on Monday.

State secretary Zsófia Koncz said that protecting the utility cut scheme and developing new green energy resources were among the most important tasks of the ministry. In recent years, the government carried out large investment projects for energy diversification, she said. Whereas in 2010, Hungary only had two interconnectors with neighbouring countries, currently it is connected with six of the seven neighbouring countries, she added.

The economy continues to be mostly dependent on Russian gas, as are Germany and several other European countries due to geographical characteristics, the structure of the market and existing infrastructure, she said. Weaning the country from Russian gas would be a lengthy process taking several years but the achievements of recent years, such as the expanded infrastructure and new interconnectors now enable Hungary to import natural gas from several other resources, she added. “In physical terms, we are currently able to receive supplies from any direction, the only condition left is to sign the corresponding agreements,” she said.

Currenly, however,

Russia delivers some 85 percent of the natural gas consumed in Hungary,

and so it is crucial that Hungary receives the supplies. “Gas is vitally important not only to us but to the whole of Europe and a gas embargo would destroy the economy of the entire continent,” she added. “The war and sanctions by Brussels have already caused a huge amount of damage. The price of electricity grew five-fold and the price of gas six-fold in Europe and there is no end in sight. Without maintaining the utility price caps, this would also burden the Hungarian population,” she said.

Hungary’s sole nuclear power plant in Paks, which provides most of the country’s energy needs,

will be “indispensable” in future, Koncz said. The importance of cheap nuclear energy has finally been recognized by the EU, she added, noting that according to the EU’s taxonomy regulation nuclear energy and natural gas can be qualified as clean energy resources.

Asked about the future use of renewable energy sources, Koncz said that Hungary would mainly aim to increase its capacity in solar energy. “It currently seems feasible that a planned six-fold increase in the volume of solar energy production by 2030 could be already achieved in 2025,” she said, noting that the country’s solar energy capacities had been increased tenfold in the past five years.

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Hungarians achieve another world success! – PHOTOS & VIDEO

Budapart Development 1

For the first time in three decades, a Hungarian neighbourhood development has won an award at the world’s most prestigious real estate development competition, the FIABCI. Follow this article for more information!

Oh Thursday in Paris, the FIABCI World Prix d’Excellence International Real Estate Development Excellence Award for the best neighbourhood development. The recognition is largely due to the 15-minute city concept, unique in Hungary, which shifts the focus of transport from cars to walking and cycling, says Ripost.

BudaPart will feature smart solutions in residential buildings, with integrated smart home systems, ceiling heating and cooling, smart sockets and remote-controlled thermostats reflecting the sustainable approach.

It is a model for a people-centred, sustainable and liveable transformation of cities.

Hungarian BudaPart project

BudaPart Development 4
Source: BudaPart.hu

Property Market’s project is the first Hungarian neighbourhood development to win an award in the three-decade history of the world’s most prestigious real estate development competition. The FIABCI jury, the Oscars of real estate, gave high marks to BudaPart’s response to environmental challenges and eco-sustainability. This includes the new development, launching later this year.

Mihály Schrancz, Managing Director of Property Market Ltd. comments on the new elements of the project.

BudaPart Development 3
Source: BudaPart

“The third phase of the green development of the BudaPart project will start. In it, the urban park will expand by 3 hectares. By the end of the development, it will reach a total of 20 hectares. This means that it will become the fifth largest public park in Budapest. So far, a total of 13.5 hectares have been renewed and upgraded. 110 trees and 1,000 m2 of shrubs were planted.”

The Lágymányos Bay, also owned by the investor, will add a further 10 hectares to the total natural surface.

Environmental preservation

BudaPart Development 2
Source: BudaPart.hu

The company’s CEO stressed that one of the significant points of their proposal at the international competition was the presentation of a main environmental challenge. Their task is not only to preserve but also to expand the flora and fauna of the area, including the Kopaszi dam. The project is preserving the topography of the area. BudaPark is a well-ordered, diverse water-situated park. The project is also introducing two new quarters to the already existing one.

The whole project is laying on a strong green strategy. This uniqueness won a gold medal at this year’s FIABCI.

A beautiful new swimming pool complex opened in Hungary – PHOTOS

zalaegerszeg swimming pool

After three months of trial operation, Zalaegerszeg’s new beach opened on 1 June. The complex was built at a cost of around HUF 9.5 billion (EUR 24 million) and is a swimming pool, a training pool and a beach.

Press conference

zalaegerszeg swimming pool
Source: Facebook/Zalaegerszegi Sport- és Tanuszoda

Mayor Zoltán Balaicz said at the press conference held at the site that the foundation stone of the new complex, which was built on the site of the former swimming pool and beach, was laid in 2019 as part of the Modern Cities (Modern városok) programme.

The swimming pool complex and some history

The fifty-metre, ten-lane swimming pool with almost 300 seats is also suitable for international competitions, MTI reports. The mayor added that Zala was the last Hungarian county whose capital did not to have a facility of this size.

In Zalaegerszeg, the beach was opened in 1956 on the site of a former cemetery. In 1969, the indoor swimming pool was completed with a 25-metre, five-lane pool.

The population of 40,000 at the time had grown to 60,000 by 2010, and by then, the pool had become outdated and small, and its size made it impossible to organise competitions,

Travelo reports.

In the new complex, in addition to the fifty-metre pool, a separate teaching/training pool for children has been built, as well as a new outdoor swimming pool and a new children’s pool.

There are already dates booked for training camps from within the country and abroad.

Costs and energy efficiency

Zoltán Balaicz pointed out that previously, it cost around HUF 50 million (EUR 126,700) a year to maintain the swimming pool and the beach, while the new facility will cost HUF 270 million (EUR 684,300) a year to run.

Energy efficiency was a top priority during construction: 120 solar panels have been installed on the roof, a heat pump provides energy and the pools are fed by their own hot and cold water wells,

24.hu writes.

At the opening ceremony, László Vigh, Member of Parliament of the region, said that the new swimming pool will serve not only the city but also the inhabitants of the province, which means about 100,000 people. Swimming is one of the healthiest sports, and in Zalaegerszeg, they also want to ensure that all children who finish primary school can swim.

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Jobbik wants the government to lift the ban on building wind farms!

Koloman Brenner and Péter Jakab

The opposition Jobbik party is calling on the government to lift the ban of building wind farms, arguing that wind power would be a vital component of Hungarian energy security.

Jobbik’s deputy group leader Koloman Brenner told an online news briefing on Thursday that ruling Fidesz had made Hungary totally dependent on Russian energy supplies and missed opportunities to replace them with cheap and secure sources of energy, he said.

Brenner blamed the government for not developing renewable energy sources other than solar energy.

He also criticised Fidesz for its “sinful decision” in 2011 to ban the construction of new wind farms. Jobbik has presented a draft to parliament on lifting the ban and has asked all parliamentary groups to support its initiative, he said.

Brenner also suggested that Hungary should lay more emphasis on utilising fusion and geothermal energy.

Jobbik does not oppose the peaceful uses of nuclear energy but insists that the Paks nuclear power plant should be upgraded with western rather than Russian technology so as to prevent Hungary from depending on Russian nuclear fuel supplies for another 50 to 80 years, he said.

Koloman Brenner and Péter Jakab
Read alsoJobbik wants the government to lift the ban on building wind farms!

Socialist MEP: Hungary should use REPowerEU Plan for ‘permanent utility cuts’

ujhelyi istván mep

István Ujhelyi, an MEP for the opposition Socialists and Párbeszéd parties, has proposed an energy efficiency modernisation method using solely EU funds to achieve “a permanent household utility cost reduction” in Hungary.

Hungary could access thousands of billions of forints in the framework of the EU’s REPowerEU Plan, a new proposal aimed at transforming the EU’s energy system into one that is cheaper, more secure and ensures more stable energy supplies,

István Ujhelyi told an online press conference on Facebook.

The money could be spent on energy efficiency modernisation programmes of private homes and houses, apartment homes, prefab blocks and public buildings, he said.

“As a result, 50-60 percent household utility reduction could be achieved with permanent effect,”

the MEP said.

The EU’s new plan aims to increase the proportion of green energy in each member state to 40-45 percent by 2030. Hungary is at the moment far behind with meeting this target, but now has the opportunity to close the gap with the help of EU funds,” he said, calling on the government to submit “concrete, feasible proposals” to Brussels.

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LMP: Compromise on EU embargo ‘acceptable but not green’

ungár

The compromise by European leaders on the EU embargo of Russian oil “is acceptable but it will not promote a shift to green energy”, Péter Ungár, group leader of opposition LMP, told a press conference on Tuesday.

As we wrote today, European Union leaders agreed late on Monday to ban two-thirds of Russian oil imports as part of a compromise deal that increases pressure on Russia while taking into account the economic impact on EU countries more dependent on Russian oil supplies. Orbán’s reaction HERE.

The agreement will ensure that none of the member states’ economies suffer serious damage, though “dependence on Russian fossil fuels will be replaced by … dependence on fossil fuels from the United States, Canada, and Arab states,” Ungar said.

Financing for adapting refineries to cater for oil from other countries should instead be spent on developing alternative energy sources, he argued.

Ungár said he supported “cutting funds which indirectly finance Russia’s military operations”, but the position of “leaders who struck energy deals with Russia after the annexation of Crimea in 2014” was “hypocritical” in this regard.

Ungár also slammed other Hungarian opposition politicians who, he insisted, “naively watched” developments in the EU.

The decisions by EU member states were “not made based on moral considerations” but on national interests influenced by industrial lobbies, and they often used Prime Minister Viktor Orbán’s veto policy as cover.

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DK calls on govt to reduce dependence on Russian energy

arató gergely dk

The opposition Democratic Coalition (DK) is calling on the government to start efforts to reduce Hungary’s dependence on Russian energy.

It has become clear over the past few weeks that there are various forms of becoming independent from Russian energy, deputy group leader Gergely Arató told an online press conference on Wednesday.

Viktor Orbán’s government is the only one within the European Union that “is unable, or rather unwilling” to become independent from Russian energy,

he added.

DK’s group will submit a draft resolution to “call the government to account” about what it has done so far and what it is planning to do to become independent from Russian energy, he said.

DK will ask the cabinet to start consultations with EU member countries about joint gas acquisition and to establish the contact points that enable Hungary to become better integrated into the EU gas and electricity market, he added.

DK proposes that the cabinet should expand the use of renewable energy and launch a home renovation scheme that does not require self-financing,

Arató said.

He also said that DK would not support the introduction of energy sanctions as long as Russian energy cannot be replaced.

orbán
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Hungary to launch a EUR 780m energy efficiency program?

Solar power plant in Felsőzsolca

Opposition LMP wants to allocate 300 billion forints (EUR 780m) for energy efficiency programmes, including installing insulation, changing windows and upgrading heating systems, MP Bernadett Bakos said at a press conference streamed on Facebook on Saturday.

Hungarians could be shielded from the current energy crisis by developing renewable energy sources and improving energy efficiency, Bakos said. Hungary’s energy dependence could be improved “to a large degree” by cutting energy consumption, but that will require a “genuine, green utilities price reduction scheme”, she added.

She said between 100,000 and 150,000 homes could be insulated and get energy efficiency upgrades with 300 billion forints.

Source: MTI

Gas energy oil Russia Hungary
Read alsoIs there a way for Hungary to reduce its dependency on Russian energy?

Will Hungary become the next major battery producer?

Truck bringing supplies

Though the Ukrainian–Russian war has brought many Eastern European economies into a difficult position, experts are optimistic about the fate of the Hungarian economy. As Világgazdaság writes, there is reason to be hopeful about the future, and here is why. 

One of the big problems the economy is facing right now is the unpredictable supply chain. Like many European countries, Hungary relies quite a bit on Ukrainian commodities in terms of agriculture and industry. But once this general uncertainty in the global economy ceases, we can look forward to a very bright economic future, according to recent investments on the market. 

Many large-scale corporate developments were launched in the country since the beginning of 2020, and these developments can bring Hungary’s export performance up by about HUF 13–22,000 billion annually. These numbers take up to 27–45% of the current annual exports of goods.

One of the main areas of investment is electromobility. The South Korean-owned SK Innovation, known to be partnered with Samsung, is building its largest European battery factory here in Hungary, which is promised to be completed by 2025. Experts say that SK Innovations and other South Korean developments could make Hungary at least the third-biggest battery exporter in Europe. 

SK Hungary Headquarters
SK Innovation Headquarters, Komárom, photo: https://skonhungary.com/about-us/

According to government officials, however, the real goal is the second place: László Palkovics, Minister of Innovation, claimed at a conference last October that Hungary aims to be the second biggest after Germany when it comes to batteries, napi.hu writes. 

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And while this is all great news, the Hungarian Convergence Program warns that because of the overall political tension in the area, “there is a risk that, during a more uncertain outlook and supply chain disruption, some projects may take longer than planned to implement and that temporarily fewer investment decisions will be made in the short term”.

While it is hard to provide a year-round outlook on what these changes could truly mean for the investments and the Hungarian economy, due to the multiplicity of risks, growth is expected to be 5-6% in the medium term. There are upward indicators as well as downward ones, but even this 5-6% growth could provide some much-needed stability to the economy. 

More importantly, these investments and developments can bring Hungary 13-18 percentage points of GDP surplus, which would only add to the seemingly brightening future of the economy.

Read also:

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Budapest Airport making giant strides with the installation EV charging stations

Budapest Airport making giant strides with the installation EV charging stations

Sustainability is a key focus area for Budapest Airport, and, within that, e-mobility is one of the six most important pillars. This is why the airport operator has been placing a strong emphasis for years on the development of an electric charging network, both inside and outside the airport fence. This work is continuing in 2022 with a huge step forward; 176 e-charging stations will be built at the airport over the next 3 years, for the vehicles of the ground handling companies, other airport vehicles and the service vehicles of partner companies operating at the airport. Budapest Airport will provide the financing of 134 of the 176 charging stations by utilizing EU funding, while the remaining 42 e-chargers will be financed from its own resources, says Budapest Airport official page.

Budapest Airport is fully committed to sustainability, including emissions reduction, and takes decisive steps year after year to maintain its carbon neutral operations and achieve its sustainability targets. As a result, last year the company was again part of the global elite group of only 58 airports that achieved level 3+ of the airport carbon accreditation scheme and are carbon neutral, i.e. fully offsetting the carbon emissions generated by their operations.

Last year, the company further reduced its direct carbon dioxide emissions, which are now half the level of what they were ten years ago.

In 2021, Budapest Airport set the primary goal to reach net zero emissions 15 years earlier than previously committed, by 2035 at the latest, which it will achieve along its so-called zero carbon roadmap.

One of the ways to achieve this is through the development of e-mobility at the airport, which has been a key focus area for the company in recent years.

Budapest Airport is constantly developing the charging infrastructure for electric vehicles, both inside and outside the airport fence, and continuously encourages its partner companies to develop e-mobility as well. Recently, 76 conventional ground handling vehicles, as well as 10 fleet and manager cars were replaced with electric or hybrid models, saving a total of 140,000 liters of fuel and 350 tons of carbon dioxide per year. So far, Budapest Airport has installed 31 electric vehicle charging points, 12 of which are located in the airside and 19 in the landside, i.e. in the freely accessible part of the airport. Budapest Airport has assisted in the installation of a further 30 electric charging stations on the airport premises for its partners engaged in ground transportation.

Főtaxi, Budapest Airport’s contracted taxi partner also prioritizes the promotion of e-mobility, and has already replaced 30% of its fleet with electric vehicles.

There are already six ultra fast electric chargers in Főtaxi’s buffer car park at the airport, which is expected to increase by 26 charging points by the end of 2025.

In addition, last year the airport operator concluded a contract for the installation of 35 more chargers and the implementation of an IT system to integrate them, which is currently being rolled out. The system will also handle tasks related to usage and invoicing, whereby users will be able to use the chargers easily. The existing online e-charger booking system helps staff with electric cars to book chargers for their company and private cars quickly and easily.

The next major step in this series of developments will be the installation of an additional 176 e-chargers.

The construction of 134 charging stations will be financed 50% by the company and 50% by the European Union. In December 2021, Budapest Airport was included in the government’s list of projects to be financed by the Connecting Europe Facility for the significant development of electric charging infrastructure, which will provide a total of 1.3 billion HUF (3.2 million EUR) to install additional chargers for ground handlers, airport service vehicles and the airport-based vehicles of partner companies. The project will run for 36 months, and the extent of EU support is 50%, i.e. nearly 650 million HUF (1,601,250 million EUR). The remaining 42 e-chargers will be installed by the airport operator using its own resources.

Chris Dinsdale, the CEO of Budapest Airport emphasized: “Our company is fully committed to reducing our carbon footprint. We have taken firm action, and we have made ambitious undertakings. We have committed to achieving ACI’s highest level of 4+ carbon neutrality by the end of 2023, we have pledged to be net zero emitters in 14 years at the latest and we have undertaken to meet our electricity needs entirely from renewable sources from 2023. Our plans also include the construction of a solar farm, to generate electricity solely for use at the airport. Many small steps and some giant strides are needed to achieve our plans, and what is even more important is to act responsibly and to put words into action, thereby setting an example for other airports, as a community and as an airport ecosystem.”

Is there a way for Hungary to reduce its dependency on Russian energy?

Gas energy oil Russia Hungary

Hungary’s strong dependence on Russian oil and gas is a heritage of the Communist era. The change of the regime could not make a difference. Only the security of supply developed thanks to cross-border pipes and a strategic gas store inaugurated in 2009. But is there a way to become free from Putin’s gas and oil deliveries?

According to 24.hu, Hungary imports 90 pc of its oil and 80 pc of its gas demand. Russia’s share in the imports of both goods is dominant. 24.hu says there are many statistics regarding the energy dependency of the EU member countries. They show that Hungary is probably not the most dependent one but it is still high on the list. After Russia had invaded Ukraine, Moscow started to send the needed gas through the TurkStream (Russia-Turkey-Balkans) pipeline system. Therefore,

the gas used in Hungary does not flow through Ukraine. Instead, it comes from the direction of Serbia. 

The country’s oil dependency is not that significant. However, it became clear in March that even MOL would not be able to process, in sufficiently large quantities, other types of oil than the Russian one without a hundred million USD investment and several years of alteration work. That is understandable. The dependency on Moscow developed in 60 years. Diversification cannot be done within a couple of months. 

In the case of the oil, it was the Communist regime that opted for the Soviet oil. When Moscow hesitated about where they wanted to build their new oil pipeline (Friendship I), the Kádár regime acted quickly to close a successful deal. The reason was that water caused more and more problems in the oil fields in Zala county. Soviets built the Friendship II pipeline in 1972.

Interestingly, the Hungarian Communist leadership not only used Soviet oil but also traded with it.

Miklós Pulai, a Hungarian economist, said that the state won 300 million USD on the business. As a result, Brezhnev reduced the supply unilaterally in 1981.

In the case of gas, the Hungarian demand significantly increased between 1965 and 1970. The supply came from Hungarian and Romanian sources. The number of households heating with gas doubled between 1960 and 1970. Furthermore, the average consumption also rose. However, the highest increase was in the chemical industry, construction sector and machinery industry.

Soviet gas appeared in Hungary’s economy in the 1970s. 1975 marked the year of the inauguration of the Brotherhood pipeline. Meanwhile, Hungarian gas plants lost their importance. Finally, the nuclear power plant in Paks was built in 1982 using Russian technology and supply.

Hungary could not change its dependency on Russian oil and gas after the change of the regime. On top of that, all power plants built between 1989 and 2006 used gas or oil. Furthermore, household gas consumption doubled between 1989 and 2009. Meanwhile, Hungary’s gas production fell 35 pc in this interval.

In 2020, Hungarian gas supplied only 20 pc of the demand.

Orbán slammed Socialist governments for they made Hungary more dependent on Russian gas. In 2007, he said, “we do not want to be the happiest barrack of Gazprom.” The Gyurcsány cabinet signed a long-term agreement with Putin in 2008, which Orbán criticised for being classified then. Nevertheless, he did the same in 2021.

In 2009, the government built a gas store near Szőreg which had a 1.2 bn cubic metres capacity. That is enough for 45 days.

24.hu argues that the Orbán cabinets did not help the diversification projects. They bring up the example of the Nabucco pipeline, though they admit that international developments killed the project instead of Orbán’s scheming. 

A couple of days ago, Viktor Orbán said that he would like to build Hungary’s future on nuclear and solar energy. He added that these two sources could supply 90 pc of the needs. Attila Holoda, the joint opposition’s energy policy professional said that Hungarian households use gas instead of electricity, so they are not interchangeable. Meanwhile, 24.hu argues that the Orbán cabinets did not support renewable energy. For example, they made it almost impossible to build wind power stations in the country.

Hungarian economist Zoltán Pogácsa said Orbán should have directed Hungary onto the renewable track a decade ago. Furthermore, they should have reduced consumption with insulation programmes. Moreover, they should not have signed the Paks 2 agreement with Russia but instead should have made more attempts for diversification. He highlighted that the European Union would help if the government showed commitment to change.

Read alsoHungarian government will not vote for any curbs on Russian oil and gas imports