Given the security of Hungary’s energy supply as well as economic and climate protection considerations, Hungary has “no alternative” to building a nuclear plant, the minister without portfolio in charge of the upgrade of the Paks nuclear power plant told an international energy conference in Budapest on Tuesday.
Citing a recent analysis by power transmission system operator Mavir, Süli said Hungary’s electricity demand could grow by 3,500-5,000 megawatts by 2030, which was why he said the construction of the Paks plant’s two new reactors was necessary.
Süli said Hungary’s economic progress brought with it a growing electricity demand, but most of the country’s power plants are old.
Without the Paks upgrade project, Hungary would face serious power supply problems within 5-10 years, he said.
Featured image: www.facebook.com/Paks II. Atomerőmű Zrt.
On the 14th and 15th of November, the Moroccan city Marrakech organised the International Energyweek Conference where the representatives of the Hungarian Trade & Cultural Center (HTTC) also were present. The conference dealt with the problems related to the lack of energy sources and the question of renewable energy in Africa, and the shortage of natural gas all over the world.
According to htcc.org.hu, the conference aimed to strengthen the international cooperation between several African countries by the sharing of experiences. The current situation is terrifying on the continent. In the near future, the whole African continent will have to make a living while only having an energy source enough for a country like Germany. This means that 1 billion people would use energy enough for 80 million people.
The continent deals with a horrible paradox: the export of oil and gas and the import of fuel. The Sahara Desert would be enough to provide energy for the whole world, but the necessary investors and the system to produce fuel are missing.
Since 2017, a significant change can be felt, because Morocco became a member of the African Union again, and the member of the Economic Community of the West African States. Morocco also signed a contract with Nigeria to build the Trans African gas main in the Sahara Desert. Also, the energy network has been boosted in Africa, and out of 15, 12 countries are connected by the 330 kW energy network, but the necessary power and Morocco are still missing.
After discussing the importance of using renewable energy, storing was also a matter of discussion at the conference. Portugal would build an underwater cable system and several wind power stations. The Trans-African gas main would connect 11 African countries’ energy network together and, by 2021, Spain would be connected to the new Moroccan network.
Besides HTTC, no other Hungarian company took part in the conference. The company took the advantage of this serious matter; they will provide the necessary help to improve Africa in the future and even organise special programmes in Morocco to ensure their availability.
HTCC organised its annual Africa Expo in February, which was a huge success as well.
Photo: www.htcc.org.hu
Featured image: www.facebook.com/Energy-Week-Morocco
“Hungary has become a European automotive industry superpower”, Minister of Foreign Affairs and Trade Péter Szijjártó said at an event on Thursday to mark the 25th anniversary of the founding of Audi Hungaria Zrt, where temporary Chairman of the Board of Management of Audi AG Abraham Schot announced that the company will begin manufacturing of electrically driven vehicles at its plant in Győr.
The Minister highlighted the fact that the production value of the automotive industry reached 8 trillion forints (EUR 24.7bn) last year, breaking all previous records, and increased by a further 6 percent year-on-year during the first six months of 2018, and if growth continues at this rate the automotive industry will set yet another record within the national economy by the end of this year.
Mr. Szijjártó also spoke about the fact that in recent years Hungary can boast economic, political and human achievements, thanks to which it has become a competitive and attractive investment destination.
“Political stability has become our trademark”,
he said, adding that Hungary currently offers Europe’s most flexible job market regulations and the lowest taxes, in addition to which dual training has also been introduced based on the German model.
“Today, Hungary is strong and proud, and is the most important country in the Central European cooperation that represents the engine of European growth”, in which a role is also played by those companies “that have placed their trust in the Hungarian people”.
Audi is one such company because without it the country could not have the traveled the path that it has traveled during the past 25 years, the Minister said.
Temporary Chairman of the Board of Management of Audi AG Abraham Schot stressed that Audi’s mission is electromobility and that by 2025 an electric version of all of Audi’s models will also be available, the motors of which will be manufactured in Győr. He did not indicate a date for the beginning of the production of electric vehicles in Győr.
“The future belongs to self-driven cars and sustainable drive systems”, the Chairman declared.
Mr. Schot also spoke about the fact that Hungary offers one of the most attractive environments for Audi in Central Europe. The region’s largest tool plant also operates here, making the company’s Hungarian subsidiary a strong member of the “Audi family”, he declared.
Photo: MTI
At the event, which was held in the plant’s assembly hall, Chairman of the Board of Audi Hungaria Zrt. Achim Heinfling spoke about the fact that the plant in Győr is “a solid and intrinsic part of the Hungarian economy and a stable and dependable part of the Volkswagen Group”.
He stressed that while in 1993 the plant produces two thousand engines-a-day on an area of sixty thousand square metres and employed seven hundred people,
today the facility manufactures over nine thousand engines on an area of 5.2 million square metres and employs over 12 thousand people, and together with its suppliers provides jobs for over thirty thousand people.
During the past 25 years the plant has produced over 34 million engines and 1.2 million cars, and the company has invested over 8.9 billion euros. He also said that the plant’s competitiveness will be assured by the serial production of the Audi Q3, in addition to which production of e-motors also began in Győr two months ago.
Mayor of Győr Zsolt Borkai said Audi not only provides a living for thousands of families in Győr, but is also a frontrunner with respect to social responsibility.
The company is Győr’s strategic partner and the driving force of the industry and the region’s economy, he stated.
Last year, Audi Hungaria Zrt. increased its turnover by one percent to 7.136 billion euros. Last year it manufactured 1,965,165 engines, and increased of 1.9 percent over its 2017 figure, and 105,491 vehicles were manufactured in Győr, 16.5 percent less than in 2016.
Audi AG employs over sixty thousand people, and the Audi Group provides employment to over 90 thousand. Last year, a total of 1,878,100 Audis were shipped to customers worldwide.
As we wrote before, “Audi will be establishing a new research and development center in Győr with an investment of EUR 19.7 million, one-fifth of which is being funded by the Hungarian Government”, read more HERE.
[button link=”https://dailynewshungary.com/ford-opens-new-regional-service-center-in-hungary/” type=”big” newwindow=”yes”] FORD OPENS NEW REGIONAL SERVICE CENTER IN HUNGARY[/button]
Elroy Thümmler fell in love with Hungary a long time ago, and although he has been a Sziget Festival promoter his true affection is for the countryside, index.hu tell us. By now Elroy bought almost an entire village, Bedepuszta, and wishes to make the Hungarian countryside more popular.
The village has two dozen houses and used to have about fifty inhabitants in its heydays.
Long history
HVG wrote about the 51-year-old man first, whose story goes back to the eighties. Elroy visited Hungary for the first time in 1987 and immediately fell in love with Budapest. He kept coming back, getting to know more than the capital and even bought a house near Kecskemét in 2003. However, that undertaking did not end well despite Elroy enjoying the romantic of the wilderness – the house had no water and electricity and was broken into every single year. His friends from Salgótarján suggested that he visit Bedepuszta, and when he did, he fell head over heels for it.
“In my opinion, Bedepuszta is easily as beautiful as Toscana,” Elroy says.
For a few million Forints he bought and renovated his first house and dreamed about having all his Dutch friends buying houses here.
Peaceful nature. Photo: facebook.com/bedepuszta
“We no longer have access to nature in Amsterdam” he explains.
“Sometimes Hungarians deem us crazy for wanting to leave the Netherlands and come to Hungary, they would do the opposite.”
His own home is more than a hundred years old, he kept whatever he could from the original. His wife and two sons also love the Hungarian landscape, but for now, they keep their headquarters in Amsterdam, spending half of the year in Hungary. Elroy now has a travel agency, mostly bringing people to festivals, the main partner of them is the Sziget Festival.
Inviting friends
From the beginning, Elroy saw more in the village than a place to rest in the summer. First, he wanted to invite his friends to buy the village together, but could only convince one of them. Martijn de Vries and his wife, Nanda Duin came to Bedepuszta and a few years later they bought the house opposite of Elroy’s. None of their friends followed, but according to Elroy, they had regretted by now.
Martijn is a photographer and his wife teaches tai-chi. They have their house in Bedepuszta since 2009 and plan to move here soon for good. Nanda has her own tai-chi school in Utrecht, in the Netherlands, but she wants to leave that by 2020 and teach in Hungary instead, as the environment is ideal for practising in nature. Martijn is a freelance photographer, so he can work from wherever he wishes to. “I plan to make Bedepuszta my giant open-air studio” he confesses.
“From our living room, you can see into the nothingness. That is priceless.”
Long-term vision
When his friends showed little interest, Elroy started to think bigger: he dreamt about a touristic centre. Although Bedepuszta has no infrastructure, the famous Hollókő is merely 12 kilometres away.
So he decided to buy every house in the village.
His Hungarian friends suggested not to pay in cash to the poor Roma villagers. Following their advice, Elroy bought houses in good conditions in other villages (Sámsonháza, Nagybárkány, Bátonyterenye) and offered them to the people of Bedepuszta in exchange for their own. In general, he got one house under 5 million Forints.
Today, he owns 21 houses in the village, there are only three that are not his.
One of those belongs to his friend, and the last two are those of the local bee-keeper and hunter, who remain in the village. Wherever he could, Elroy used renewable energy for the renovations, and in the future, they may build passive houses.
In the midst of renovating. Photo: facebook.com/bedepuszta
The opening was rescheduled for next year, and when everything is ready there will be a hundred beds, plus a camping for a potential number of 400 more people. One could rent the whole village for 1.5 million forints a day, but first, he wishes to rent out the houses individually.
Elroy has every right to be confident, he brings tens of thousands of Dutch every year to the Sziget festival, and for two years he even organised a detox party for them after the main festival in Bedepuszta.
His own festival
As a second step, he would start his own festival.
He claims that he would not wish to grow to the size of Sziget, he just wants “slow food, good music” and to maintain the charm of the place.
Ideal place for a nice festival. Photo: facebook.com/bedepuszta
Belgian neighbour
Leaving Bedepuszta, in Kisbárkány there is a car with a Belgian licence plate. It belongs to Toon Otten, who has been visiting Hungary for eight years now and has been living here for three. He also plans to spend more time in the countryside than in Budapest, and works as an EU project manager, trying to aid Elroy as well.
Toon says this area resembles rich touristic regions such as Provence or the southern Belgian Ardennes.
So far, Elroy has spent 480 million Forints (1.5 million Euros) and had no revenues. However, he is confident that with the proximity of Hollókő, Bedepuszta will flourish. In higher circles thus far his only supporter is the major is Kisbárkány.
In general, Elroy has a good opinion about Hungarians, according to him, we are polite, hospitable even if not always immediately. “Although it is really hard to understand you,” he tells us. “The Hungarian language is very difficult.” Nevertheless, he can say méhész, vadász, pálinka, polgármester (bee-keeper, hunter, pálinka, major) and Hollókő quite perfectly.
“I have the feeling that I can promote Hungary better from the outside than Hungarians could from the inside.”
There is a village in Zala county like no other in Hungary, Sokszínűvidék.hu tells us. Nagypáli is a very open village, always attempting to find the best directions, aiming at an economically beneficial, sustainable lifestyle.
Nowadays most people call Nagypáli the wonder village or the revitalised ecovillage.
Green Road Village Development – Nagypáli, photo: MTI
Worldwide fame
Their good reputation spread beyond our borders and they have an ever-growing number of international cooperation.
As part of these international relations, following a four-year-long tradition, Major Tibor Köcse has invited a prominent delegation of experts from Morocco last week. They have studied the renewable energy developments of the village, as well as the complex solutions of Zalavíz Zrt. to use the sewage-mud, for example, biogas and biomethane production, or the agricultural resupplying of production capacity.
Furthermore, the African experts had a chance to observe different technologies in the field of agriculture and gardening. For example, they learned about the apple production, as they are growing apples in the Atlas Mountains, and can only harvest about half of the Hungarian amount.
Photo: energy-globe.hu
Tibor Köcse, the major explained, that Nagypáli is an open village.
“We wish to learn sensible things from the world and therefore we must get to know each other”
he said. “Last year, we were in Morocco, participating in the testing of emerald-tree which can contribute to the lessening of the climate change”
The guests from Morocco deemed their visit very useful, and believe that despite the geographical differences they could learn some technological solutions that they can make good use of at home. Naturally, they wish to maintain the good relations with Nagypáli, believing there is more potential for cooperation regarding renewable energy or the circular economic model for example.
Hungary is on the path to cover 95 percent of its energy needs from resources free from carbon dioxide, Innovation and Technology Minister László Palkovics said, addressing a United Nations (UN) meeting on sustainable development goals in New York on Wednesday.
“This means mostly nuclear energy”, the minister said, adding that geothermal, biogas and solar energy will also be used extensively.
Speaking on the sidelines of a ministerial meeting reviewing the results of the sustainable development goals, which the UN accepted in 2015, Palkovics told MTI that
he had reported on the related goals and results in Hungary, especially in the fields of water management, clean energy, sustainable urban and village development and responsible production and consumption.
Water quality and safety are at a high level in Hungary, with access to public utilities above 80 percent, Palkovics said. Under the “water diplomacy”, initiated by President János Áder,
Hungary is supporting other countries in establishing water safety and improving water quality, he said.
Hungary spends 2.7 million dollars a year on such projects, he said. Hungary also “spends a lot” on education, training Hungarian water engineers as well as professionals from Africa, Asia and the Middle East, Palkovics said.
Hungary aims to establish a “green economy”, Palkovics said, and “switch to electronic vehicles in public transport”.
While in New York, the minister opened an exhibition on the life and work of eminent Hungarian physician Ignaz Semmelweis (1818-1865), a pioneer of antiseptic procedures. Palkovics lauded Semmelweis’s resilience and the practical implementation of his research.
Hungary has made “significant progress” in decoupling its output growth from environmental pressures and it has reduced its reliance on fossil fuels, according to an OECD report.
fossil fuels still account for about 70 percent of Hungary’s energy supply and OECD has urged an accelerated transition to a low-carbon economy.
Hungary’s total gross greenhouse gas emissions have decreased by 35 percent since 1990, but emissions have recently started to increase, driven by transport and agriculture, OECD warned.
The report has urged that the government should do more to address emissions of particulate matter and meet the respective EU targets for 2020 and 2030, noting that the average exposure of Hungarians to fine particulate matter is more than double the annual guideline limit set by the World Health Organisation.
The share of the population connected to wastewater treatment rose to 78 percent in 2016, but this share remains one of the lowest in the OECD, it said.
Most rivers have a bad to moderate ecological status due to pollution from agriculture and wastewater discharges, the report added.
Environmental authorities should be strengthened and encouraged to adopt best regulatory practices, and legal provisions for environmental democracy need better implementation, the OECD said.
The OECD said landfills that failed to comply with EU standards had been closed by 2009, but added that 54 percent of waste still ends up in landfills.
It urged the government to reinforce incentives, including economic instruments, for municipalities to strengthen waste management performance.
Protected areas cover more than 22 percent of Hungary’s territory, and it was one of the first EU member states to have its Natura 2000 network of protected areas declared completed, the OECD said, but it urged better management and financing for these areas.
China’s Zhejiang Kaishan Compressor has agreed to build a 45 billion forint (EUR 141.1m) geothermal power plant in Tura, not far from Budapest, Hungary’s foreign affairs and trade minister told MTI during a visit to Shanghai on Wednesday.
The 40MW power plant will supply heat to farms and residential buildings as well as generate electricity, Péter Szijjártó said, speaking by telephone.
Zhejiang Kaishan Compressor’s geothermal business will also set up a base in Budapest, he added.
Talks with China Eastern Air Holding on launching a direct flight between Shanghai and Budapest are in an advanced stage, Szijjártó said.
Photo: Pixabay (Illustration)
Press release
KS ORKA to continue with geothermal development in Hungary, next phase 40 MW in power and 100 MWth in heating capacity
During the official visit of the Foreign Minister of Hungary, Mr Péter Szijjártó, to Shanghai this week, KS ORKA´s majority shareholder Kaishan announced the intention to continue with the geothermal development in Hungary. The next phase in KS ORKA´s development plan is estimated to give 40 MW in power and approx. 100 MWth in heating capacity. The cost of the next phase is estimated to be EUR 140m.
KS ORKA is a Chinese – Icelandic joint venture and has already built the first geothermal power plant in Hungary that began operation in November 2017. The power plant is a combined heat and power plant producing 3 MW power and 7 MWth heating capacity.
About Orka
KS ORKA is a project developer focused exclusively on the development of geothermal and waste heat projects. Orka’s experienced team has over 30 years of collective experience developing, managing and financing geothermal energy and power projects.
KS ORKA combines its geothermal and project development expertise with Kaishan’s power plant technology and manufacturing expertise to form Asia’s first vertically integrated geothermal and waste energy company. KS ORKA brings to its projects some of the most experienced geothermal experts and power project developers in the world. Members of the management team, the former management of ORKA Energy, have participated in some of the most significant geothermal energy projects project around the globe, including:
The KS ORKA team is currently involved in projects in the Indonesia, Hungary, Serbia and Turkey.
Hungarian president János Áder inaugurated a solar power plant in Csepreg near the Austrian border on Wednesday.
Addressing the ceremony, Áder said that boosting the use of renewable and nuclear energy is indispensable in achieving the goals set in the Paris climate accord.
Áder is a main advocate and signatory of the landmark agreement.
“We Hungarians are a bit late in promoting solar energy, but if all goes according to plan, active solar power plant capacity could increase by twentyfold by 2030 compared to 2014,” he said.
The solar power plant in Csepreg, together with a similar plant built in nearby Vép, is the first such investment carried out using solely private capital and bank loans instead of state or EU funds, he said.
Photo: MTI
Péter Pusztai, the managing director of the investment company Solar Markt, said that the two plants have been built by installing 30,000 solar panels with 10,000 MWp capacity covering 150,000 sqms.
The two plants have capacity to provide electricity to around 2,500 households, he said.
This year 175 teams from 24 European countries are competing at the Queen Elizabeth Olympic Park in the contest, which was first held in 1985.
The idea is to cover the greatest distance with the least amount of fuel.
Last year’s winner made one litre fuel last for 2,503.9km, the festival’s website said.
The Hungarian teams are from St István University, Győr, in western Hungary, Budapest’s Óbuda University, Debrecen University, in eastern Hungary, and the Kandó vocational school in Kecskemét, central Hungary.
The teams are taking different, and in some cases, novel approaches to improving a vehicle’s efficiency,
such as engineering steering mechanisms to be more energy-saving and developing new chassis and drive-train technologies.
Since 1996 the village of Nagypáli, Zala county, has done everything differently than any other Hungarian village. They do not sell unused areas but instead work on making the community more prosperous and improving the quality of life. The leaders had started steering the village toward renewable energy sources even before this became popular.
Nagypáli started on its road to becoming the Hungarian wonder village with the election of Mayor Tibor Köcse in 1996.
Under his leadership, the population of the village rose from 272 to 500 people, and the average age of its residents is getting younger and younger. Their dream was to both preserve the traditions of a Hungarian village, and also to elevate it to European standards. It seems like their dream has come true: many tourists are coming to the area and thanks to renewable energy sources they created a village that works like a charm, is pleasant to live in and sustainable.
The village has been applying to many tenders. This is how they built their biosolar heating plant, solar collectors and the solar farm that is shaped like a sunflower and has a solar tracking system. Their down payment comes from real-estate developments, expanding apartment complexes and remunerative investments. They save a lot on utilities: their energy bill is only one-third of what it used to be thanks to their use of alternative energy. Renewable energy covers 70 percent of the local government building’s energy consumption.
Green Road Village Development – Nagypáli, photo: MTI
The Green Road Village Development Program also helps to plant a grove in the village centre. They will be planting Smaragd trees, which is a special hybrid tree that is capable of remarkable growth even under extreme climatic conditions. It has excellent timber quality, an exceptionally high calorific value, the deep roots help stop soil erosion, the leaves can feed animals, and they also absorb enormous quantities of carbon-dioxide. In short, it balances the climate of their immediate environment, and therefore it is the perfect tree for a village that is environmentally conscious.
It should not come as a surprise that the local government’s official vehicle is an electric car which is, of course, charged locally in their own charging station.
Their next goal is to use only renewable energy sources in every household in the village.
According to Forbes.hu, it took over six months and several rounds to choose Hungary’s greenest, most innovative projects that would win the E.On Energy Global Hungary prize. Here is a list of the most sustainable initiatives.
1. “Reborn Home”
The grand prize, a Nissan Leaf, goes to the Kistelegd 2008 Architecture Bureau’s “Reborn Home” project in Pécs. The project involves a house from the ’70s that was turned into a smart residence.
The house relies entirely on renewable resources and, incredibly, it produces more energy than it uses.
2. “Fabulous Park Kindergarten”
Source: energy-globe.hu
In the ‘Buildings’ category, the winner is Archikon Architecture Ltd.’s idea of the “Fabulous Park Kindergarten”.
It can be found in the 13th district of Budapest. It is Hungary’s first qualified passive house. Its increased insulation, heat reclaiming ventilation as well as the light- and presence sensory LED lights all contribute to reducing the energy consumption to the tenth of a building of a similar calibre.
3. Ladybird Farm
Source: energy-globe.hu
In the category of ‘Future Generation’, the audience chose “Ladybird Farm” to be the winner. This leisure centre uses green energy and teaches children how to lead an environmentally conscious lifestyle. They only offer programs that rely 100 percent on renewable energy sources or that do not require energy at all.
4. Green Road Village Development – Nagypáli
Green Road Village Development – Nagypáli, photo: MTIGreen Road Village Development – Nagypáli, photo: MTIGreen Road Village Development – Nagypáli, photo: MTI
In the category of local governments, the winner is Nagypáli’s “Green Road Village Development” program. This area offers no economic or natural advantages, so the aim of the project is to try and get young people to stay with the promise of environmental consciousness. Today, the centre of the village has a grounds full of princess trees, a hybrid power plant (wind and solar power) and electric cars.
Photo: energy-globe.hu
Other prizes went to projects like “On-farm”, an eco-farming research network that would help local farmers and make sustainable farming as well as the consumption of bioproducts popular; the “Green Maths” website that links environmental teaching together with Mathematics tasks or the KonvekPRO product that digitalises mechanic gas convectors so that they can be controlled from any modern digital equipment.
Being sustainable was important at the award ceremony as well: there were no plastic bottles or straws and the dinner was made from local, seasonal ingredients.
Another major international environmental award has been received by Budapest Airport: ACI (Airports Council International) confirmed that Budapest Liszt Ferenc International Airport achieved the so-called “carbon-neutral” accreditation, the airport’s statement said.
The accreditation program launched by ACI has found that the operation of Budapest Airport maintains a balance of energy consumption and energy production. Carbon neutrality means this balance has been achieved, as using conventional fossil-based energy always entails emission of CO2, that is, carbon emission, or in other words, a carbon footprint. All around Europe, only about thirty airports belong to the carbon-neutral group.
The program of Budapest Airport spanning several years aimed at sustainable operation reached a real milestone. The airport operator launched its energy-rationalization effort ten years ago, thanks to which it was awarded the carbon-neutral accreditation by Airport Council International in April 2018. This means that by applying environmental conscious solutions, the airport has reduced its CO2 emission generated by its daily operation, and the remainder is balanced out by it in a way that is under international supervision.
In the framework of its program of environmental awareness, Budapest Airport replaced the lighting fixtures in the terminals with energy-saving LED-based systems, and continues to refurbish and maintain the district heating pipes as well as the pumps of its water supply system.
Budapest Airport said in a statement that it is a key component in the program that air handling and air conditioning equipment of the airport are also upgraded on an ongoing basis. As a result of such consistent efforts, CO2 emission of Budapest Airport per passenger was reduced by as much as 44% over the last five years.
“In Europe, only thirty airports are in the elite club of carbon-neutral operations, and in Central-Eastern Europe we are the first to receive this accreditation,” underlined Gábor Szarvas, environmental director of Budapest Airport. He added, “Since passenger traffic has been increasing significantly, we are continuously working on making the airport operation greener, in the framework of our Greenairport program. This summer the new passenger pier at Terminal 2B will be handed over, featuring state-of-the-art technologies of heating and cooling. In addition, we continue to increase the number of electric vehicles at the airport and to commission charging stations, reducing CO2 emissions due to fossil fuels.”
Apart from optimizing its own operation, Budapest Airport is also encouraging its partners at the airport as well as all other organizations and authorities to adopt sustainable practices. The Greenairport initiative was launched three years ago, aimed at making the operation of Liszt Ferenc International Airport sustainable via joint environmental actions.
The energy consumption of the airport – based on the energy consumed for making hot water, heating, and lighting – is equivalent with the energy consumption of 23 thousand households, the energy demand of a small town.
This is also why adopting environmentally friendly solutions has top priority at the airport.
As we wrote before, there was an extremely busy flow of passengers at Budapest Airport during this year’s Easter period – the numbers resemble the summer peak. Over 40 thousand passengers departed and arrived at Budapest on both Thursday and Good Friday.
See below main business and financial news from the previous week:
NEW HUF 1,000 BILL ENTERS CIRCULATION TODAY
Hungary’s new HUF 1,000 banknote enters circulation on March 1, the National Bank of Hungary said on Wednesday. Read more HERE.
BEYOND TOURISM – A HUNGARIAN HOUSE WAS OPENED IN BANGKOK
For decades, we mainly knew Thailand for its pleasant, sandy beaches. In the imagination of the world – and Hungarians – it was kept count of as the destination of dream holidays. But today, Thailand is something much more: it is a dynamically developing economic middle power driven by a quickly developing industry and world-class agriculture. So Hungarians don’t only go there on holidays anymore – they also go with the aim of doing successful business. Read more HERE.
EXPANDING BALANCE SHEET LIFTS OTP PROFITS
Fourth-quarter after-tax profit of OTP Bank, Hungary’s biggest commercial lender, jumped by 159 percent year-on-year to 68.5 billion forints (EUR 218m), lifted by an increase in lending activity and a strong performance by the bank’s foreign units, an earnings report showed. Net interest income rose by 6 percent to 140.5 billion forints and net revenue from commissions and fees increased by 20 percent to 58.1 billion forints.
RICHTER ISSUES PROFIT WARNING OVER ESMYA
Hungarian drugmaker Gedeon Richter said it would book a 42 billion forint (EUR 134m) impairment loss related to its uterine fibroid drug Esmya which has come under scrutiny by the European Medicines Agency (EMA). Richter said its 2017 consolidated financial statements would be prepared taking into account the expected negative impact on business caused by temporary measures imposed on Esmya.
HUNGARY BANKING SECTOR PROFIT JUMPS 50 PC IN 2017
After-tax profit of Hungary’s banking sector climbed 50 percent to 632.4 billion forints last year, lifted by higher revenue from commissions and fees, freed up risk provisions and the lower corporate tax rate, data released by the National Bank of Hungary showed. The sector’s net interest revenue edged down by 1 percent to 775.2 billion forints. But net revenue from commissions and fees rose by 5 percent to 512.4 billion forints.
K+H BANK AFTER-TAX PROFIT APPROACHES HUF 42 BN IN 2017
K+H Bank, the Hungarian unit of Belgium’s KBC, had after-tax profit of 41.8 billion forints (EUR 133m) last year, CEO David Moucheron said at a press conference. K+H Bank had total assets of 3,015 billion forints at the end of 2017, up 7 percent from twelve months earlier.
LINAMAR HUNGARY PLANS HUF 8.6BN INVESTMENT
Canadian-owned machinery maker Linamar Hungary will invest 8.64 billion forints (EUR 27.5m) at three bases around the country, creating 200 jobs, Minister of Foreign Affairs and Trade Péter Szijjárto announced. The government is supporting the investments, which will create 200 jobs, with a 1.55 billion forint grant.
HUNGARIAN SOLAR CELL PAVEMENT FOR EXPORT
As we previously reported, a Hungarian enterprise has started to produce solar collecting pavement blocks from recycled plastic. As of now, even the international press caught attention. Forbes.hu states that the invention made it to the list of New Europe 100, that ranks the most promising startups. Read more HERE.
MOL TO BUILD THREE SOLAR PARKS
Hungarian oil and gas company MOL will spend “several billion forints” to build three solar parks on a combined area of 37 hectares, MOL Hungary COO Sándor Fasimon announced. Construction of the parks, in Tiszaújvaros (E Hungary), Százhalombatta (C Hungary) and Füzesgyarmat (SE Hungary), will start in March and wind up by year-end.
HUNGARY PMI SLIPS TO 57.4 IN FEBRUARY
Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) slipped to 57.4 points in February from 61.1 in January, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim), which compiles the index, said. An index value above 50 shows expansion in the manufacturing sector, while a value under 50 signals contraction.
DUNA HOUSE PROFIT SLIPS 21 PC IN 2017
Listed real estate broker Duna House’s after-tax profit fell by 21 percent to 918 million forints (EUR 2.9m) last year, an earnings report showed. In a separate disclosure on guidance, Duna House put its 2018 after-tax profit at 2.7-2.9 billion forints.
BAKERY COMPANY ZALACO PLANS HUF 4BN EXPANSION
Bakery company Zalaco Sütőipari announced plans for a 4 billion forint (EUR 12.7m) expansion at its base in Zalaegerszeg (W Hungary). Hungary’s government will support the investment, which will create 150 jobs by 2020, with a 836 million forint grant.
EUROPEAN COURT FINDS FAULT WITH HUNGARIAN GAMBLING RULES
The Court of Justice of the European Union (CJEU) ruled that Hungary’s laws regulating gambling partially violate the tenet of the free movement of services in the Treaty on the Functioning of the European Union (TFEU). The court said rules that require online gambling organisers to have a domestic casino operator’s licence violate the principle as they negatively discriminate against businesses based in other EU member states.
As we previously reported, a Hungarian enterprise has started to produce solar collecting pavement blocks from recycled plastic. As of now, even the international press caught attention. Forbes.hu states that the invention made it to the list of New Europe 100, that ranks the most promising startups.
The beginning
Imre Sziszák and József Cseh, founders of the enterprise, attended the University of Debrecen. They are both engineers, Imi is a mechanic while Józsi is a chemical- and electrical engineer. Miklós Illyés, a friend of theirs, is a landscape architect and it was his idea that brought the two boys back to the world of business after they have finished their studies. He found it annoying that every public place got covered with the same ugly and boring concrete paving-blocks. Instead,
Miklós was dreaming about recycled materials producing energy.
He asked Imi and Józsi whether the idea was realistic and the answer was yes. This is how Platio was founded.
The easiest way to picture the Platio-panels is to think about LEGO pieces. However, they are 34 centimetres wide squares that weigh 8,5 kilos. The recycled plastic base has little modules with which the pieces can be connected. Momentarily, 90 percent of the base is made from recycled material, but the guys aim to improve it to a hundred percent.
“The recycled materials are not just a marketing catch, with them we can also keep the prices low.” – as they said.
According to Miklós, the product can be used in many different ways from phone chargers to pavements or public furniture.
Achievements
The trio has already accomplished four projects out of which two happened to be abroad.
Firstly, they introduced themselves in Kazakhstan with an amazing 80 m2 solar cell pavement. Then, they created a solar pontoon-bridge in Sweden, In Budapest, they got an order from an electric car charging station. Finally, they succeeded in their project with Hellowood at Városház tér, where they built public furniture with built-in solar panels that can charge mobile phones.
Plans for the future
2018 is going to be very busy for these guys. According to their calculations, they are on the right way to triple their income from the previous year. In order to fulfil their orders this year, they needed financial support, and fortunately, they won the EU applications as well.
From Horizon 2020 and GINOP, they receive 70 million forints (230 thousand euros).
They did not want to share any details in connection with their future projects until they are settled, but they gave a hint that they have international and national orders as well.
Hungary is about to go ahead with construction of what will be the country’s largest solar power plant.
The town of Felsőzsolca, in north-eastern Hungary, has accepted an offer by state energy company MVM to become home to the country’s biggest solar power plant, with a capacity of 20MW, regional daily Észak-Magyarország said on Tuesday.
MVM will set up 74,000 photovoltaic cells on 45 hectares, the paper said.
The plant will supply electricity to more than 11,000 households, local daily Borsod online said earlier.
The state has earmarked 3.1 billion forints (EUR 9.96m) in central funding to the project, the paper said.
MEKH noted that solar power plants operate on average for 1,050-1,200 hours per year in Hungary, generating enough power for 250 households for each half a megawatt of capacity. In 2015, commercial power generation capacity using renewable resources stood at 837 MW, MEKH said.
Hungary introduced a new system of feed-in tariffs for power generators that use renewable resources from the start of 2017. Under the system, cost-based prices are paid for power generated using renewable resources, providing an incentive for investments in green energy.
Reach more on action solar if you’re interested in learning how you can install solar panels for your home.
2018 is indeed the year of Hungarian startups already. A Hungarian enterprise has come up with an ingenious new idea: producing solar collecting pavement blocks from recycled plastic. As Forbes.hu reported, they have just completed a new experimental project in Budapest.
This decade has seen the rise of electric cars and the Hungarian startup, Platio, has exploited this trend; they have developed solar collecting pavement blocks from recycled materials. They aimed to construct a pavement which has a high carrying capacity, produces electricity during the daylight period and is capable of storing it. It is also designed to be compatible with a variety of network types. Thus, the energy produced could be used for a range of purposes such as lighting and operating traffic lights.
Moreover, the system is also capable of storing kinetic energy, so pedestrians may produce energy without even knowing it just by passing by on these blocks. This method has already been applied at Hello Wood’s pop up park in Budapest, and an office building in Astana, Kazakhstan, — the latter of which was related to the World Expo 2017.
This solution is both space-saving and decorative; Platio designs, constructs and controls the system.
The Hungarian subsidiary of the multinational logistics real estate firm, Prologis, has used this new technology in an experimental project.
The solar blocks were built into the pavement around Prologis Park Budapest-Park service station, throughout 4.7 square meters. This was a first time cooperation between Platio and Prologis, one of the world’s largest logistical real estate enterprises.
The pavement provides 720 watts of green energy for the service station.
When the station has no customers, the energy is used by the office buildings nearby.
Miklós Illyés, the founder of Platio, states that they are looking for partners who support new technologies and are able to provide opportunities to apply them. This is how they founded Prologis, the company which has made it possible to develop the first version of an electric car charging system in Hungary, thus contributing to e-mobility.
Prologis Park Budapest-Harbor is situated on the southern border of District XXII. It is the leading industrial real estate service in Hungary, extending throughout nine industrial parks and 688,000 square meters of logistic territory.
According to the latest reports from Bloomberg New Energy Finance, emerging nations around the world could be responsible for most of the growth within the solar power industry. With China and India leading the way, these developing countries have prompted a significant boost in solar capacity, which expanded by no less than 33% during 2016 alone.
In 2016, China installed around 40% of the world’s new solar, and Brazil, Mexico, Jordan, Pakistan, and Chile all doubled their solar capacity in the same year. Overall, solar accounted for about 19% of all the new generating capacity established by emerging markets, but solar only accounts for about 1.3% of the global electricity generation in our market. The good news is that the exponential growth of solar power throughout the world is being driven by a combination of new national policies and the falling price of solar modules.
The Exponential Growth of the Solar World
Within the last ten years, we’ve seen significant growth in the solar energy market, thanks to falling hardware prices, and new commitments by governments around the world when it comes to reducing greenhouse emissions. While Japan, Europe, and the US initially led the way with their solar installations, the most growth in recent years has come from developing countries – with China leading the way.
Carbon Brief recently released new “Climate scope BNEF” information for emerging markets, with information from the Statistical Review of World Energy, to provide insights into the growth of solar in recent years. On average, the most growth comes from high-population countries like the US and China, and the UK currently has the 6th largest installed capacity of any country – which makes it larger than France, Spain, India, and Australia.
Though the popularity of solar panels in South Australia has continued to grow, the country overall has a long way to come before it catches up with some of the leaders. For instance. Germany currently has the largest installed solar base per person, with around 500 watts per person, followed by Japan at 337 watts. In comparison, Australia is currently at 228 watts per person.
The Changing Nature of Solar Growth
Although European countries continue to maintain many of the largest solar capacity levels per person, it’s important to note that the amount of solar being delivered in these countries has slowed over the last few years. In 2016, Japan had the most new solar panels installed per person, at around 69 new watts per person. At the same time, Australia was close to the top with around 31 watts.
Additionally, while per-capital installations for solar power across Africa are somewhat low in comparison, the region has seen a significant amount of growth. BNEF revealed that more than 1.5 million households across Africa now have solar installed within their home, thanks to the help of mobile-money financing plans.
Finishing Thoughts on the Solar Trends
Ultimately, while the United States, Japan, Europe, and Australia were responsible for driving much of our exploration into solar power during the earlier years, countries like China have begun to take over in recent years.
Despite a growth in the marketplace, solar power still only accounts for about 5% of our energy capacity across the world. The positive news is that number continues to grow every day. Solar is still widely expected to continue growing rapidly in the years ahead, as prices of photovoltaic technology continue to drop, and climate policies continue to emerge. By the time we reach 2020, some experts predict that it will be cheaper to use solar for energy than coal in India, China, and the US.
However, there are still challenges to face on the road ahead before we can become completely sustainable with our energy usage.
