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Wind energy in Hungary

General

 

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Hungary is 13% (in the year 2005 the share was 4.3%).

 

Renewable electricity: wind

As regards the policy framework, promotional schemes are being used and refined, and subsidies are available under certain conditions for the development of RES. Until 2020, Hungary aims at covering 13% to 15% of its energy demand from renewables. Most of the excess capacity will be provided for by new biomass power plants.

For system security reasons a 330 MWe capacity limit was set  for wind energy until 2010. According the new legislation new wind capacities (over 330 MW) can only be established in  a tender procedure. In 2009 appeared the first Call for Proposals for 410 MWe wind capacity . The Hungarian Energy Office has cancelled a tender for the construction of 410MW in wind farms, casting doubts over the country's growth plans for wind energy. The tender, which had already drawn preliminary bids to construct 1.1GW in wind farms, had represented the first opening for new projects since the government capped capacity at 330MW in a 2006 tender. The Hungarian Energy Office reserved the right to re-open the tender process under new conditions.

Hungary's previous government had forecast that 920MW of wind farms  could be operating by 2020, producing 1.7TWh of electricity a year. At  the end of 2010, Hungary's installed wind capacity amounted to 295 MWe,  that number should rise to 330MW by 2011 as the remaining  projects licensed are built. Grid connection procedures last  on average  45 months in the country, and 10.6% of total project costs are spent on getting it.

EWEA and HuWEA would like to see at least 1,250 MW installed in the country by 2020, which would provide about 5% of its electricity demand. The Hungarian Energy Office reserved the right to re-open the tender  process under new conditions, but when and how is not clear.

The feed-in tariff is a guaranteed payment and varies according to the time of day. The amount of payment is based on the average pay-off period of individual technologies, the efficiency of the energy source used, the use of natural resources, the higher degree of efficiency brought about by technological developments and the effects of a technology on the electricity grid. The amount calculated is laid down in a special regulation (§ 10 (1) c) Act Nr. LXXXVI of 2007). The amount of payment is set annually and is adjusted to the rate of inflation. The period of payment is set by the Energy Office in line with the statutory provisions and shall not exceed the pay¬-off period of the system. The amount of payment varies according to three periods (wind energy are subject to a single standard tariff). These periods depend on the area concerned and differ for weekdays and weekends/holidays.

In the end, the consumers bear the cost of the feed-in tariff. The grid operator pays the feed-in tariff to the plant operator, but also receives payments from the electricity suppliers. Electricity traders are obliged to purchase the electricity in question and enter into a contract with the grid operator.

            Feed-in tariffs in Hungary amounts to  28.13 HUF/kWh (€0.0844/kWh), adjusted to inflation each year and guaranteed for 10 to 15 years

Future programme changes expected

According to NREAP  building of 750 MW of wind energy capacity in 2020 should be realistically achieved. However, if the flexibility of grid is improved (development of smart grids, new storage units etc.) this target could be exceeded. So far the capacity of 295 MWe was installed in 2010. It is estimated that total contribution from wind energy in Hungary will reach 577 MW in 2015 and meet the binding target of 750MW in 2020.

Sources

National Renewable Energy Action Plan for Hungary. 2010. URL: http://ec.europa.eu/energy/renewables/transparency_platform/doc/national_renewable_energy_action_plan_hungary_hu.pdf

http://www.igwindkraft.at/redsystem/mmedia/2010.12.01/1291219101.pdf

http://www.windpowerintelligence.com/article/vd8NhBEC5Bw/2010/09/10/hungary_hungary_cancels_410mw_wind_energy_tender/

http://www.erec.org/fileadmin/erec_docs/Projcet_Documents/RES2020/HUNGARY_RES_Policy_Review__09_Final.pdf

http://www.kormany.hu/download/d/61/10000/Magyarorsz%C3%A1g%20Meg%C3%BAjul%C3%B3%20Energia%20Hasznos%C3%ADt%C3%A1si%20Cselekv%C3%A9si%20Terve.pdf

http://www.renewableenergyworld.com/rea/news/article/2010/07/grid-connection-costs-barriers-to-hungarian-wind

http://www.windpowerintelligence.com/article/vd8NhBEC5Bw/2010/09/10/hungary_hungary_cancels_410mw_wind_energy_tender/

http://res-legal.eu/en/search-for-countries/hungary/single/land/ungarn/instrument/price-regulation-5/ueberblick/foerderung.html?bmu

Institute for Renewable Energy,  Poland.

Update: February 2011



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