Opportunities in the Hungarian Wind Energy Market
Levente Csók, HWEA Board Member
Dr. Andrea Biróné Kircsi, HWEA President
Dr. Péter Tóth, HWEA Honorary President
Opportunities in the Hungarian
Wind Energy Market
Levente Csók, HWEA Board Member
Dr. Andrea Biróné Kircsi, HWEA President
Dr. Péter Tóth, HWEA Honorary President
Topics
Potential of wind energy in Hungary
Facts and figures
Legal framework, support scheme
Regulatory issues, energy storage, R&D
Outlook 2020
Topics
Potential of wind energy in Hungary
Facts and figures
Legal framework, support scheme
Regulatory issues, energy storage, R&D
Outlook 2020
Why Wind?
Globally increasing energy demand
Carbon neutral energy production– Part of the battle
against climate change!
Quick deployment and relatively low investment needs
among other types of power plants,
Mature technology, low technology risk
Increases the diversification of the energy production
and thus the energy security,
Beneficial social-economical impacts: increasing of direct
and indirect employment.
(EWEA, 2009 – Wind at Work)
Global Technical Potential of
Renewables (EJ/yr)
5
IPCC, 2011: Summary for Policymakers. In: IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation [O.
Edenhofer, R. Pichs‐Madruga, Y. Sokona, K. Seyboth, P. Matschoss, S. Kadner, T. Zwickel, P. Eickemeier, G. Hansen, S. Schlömer,
C. von Stechow (eds)], Cambridge University Press. Figure SPM.XX
Wantuchné Dobi I. et al., 2005
Wantuchné Dobi Ildikó, Konkolyné Bihari Zita, Szentimrey Tamás, Szépszó Gabriella,2005:
Széltérképek Magyarországról "Szélenergia Magyarországon"
2005.01.19, Gödöllő (11-16)
Average Wind Speed Map at 100m
in Hungary
7
Wind Energy Map at 75m in Hungary
(W/m2)
Wantuchné Dobi I. et al., 2005 Országos potenciális energia 75 méteren: 204PJ/év
Dr. Hunyár Mátyás MMT előadás 2005.10.13 OMSZ
8
Wind Energy Potential in Hungary
Theoretical potential: 532.8 PJ/yr
Source: Hungarian Scientific Academy, Energy
Committee, Renewable Energy
Subcommittee, 2006.
Wind energy potential: H=75m, D=75m,
E=56.85TWh (204.7 PJ/yr.) Paverage=6,489
MW
9
Topics
Potential of wind energy in Hungary
Facts and figures
Legal framework, support scheme
Regulatory issues, energy storage, R&D
Outlook 2020
Top 10 Cumulative and New
Installed Capacity in 2013
14
Forrás: GWEC, 2013
Wind Energy Utilization in EU
Europe has lost its
leadership
Between 2010-2011
due to the financial
crisis there was a drop
in the newly installed
wind capacity.
15
Forrás EWEA, 2014
Wind Energy Utilization in EU
Total installed wind capacity at the end of
2013 was 117.3 GW. The onshore installations
were significant in Germany and Spain the
offshore ones in the UK. Growth stopped in
France and Italy.
In a normal windy year the wind turbines
installed until 2013 in EU are producing 8% of
the gross energy consumption.
16
EWEA, 2014
Share of WTG Manufacturers on
the Hungarian Market in 2011
28
MSZET, 2011
Annual Wind Energy Production
(GWh)
29
MSZET, 2013
0
100
200
300
400
500
600
700
800
0
30
60
90
120
150
180
210
240
270
300
330
360
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
GWh
MW
Összes telepített [MW] Évente telepített [MW] Évente termelt villamos energia [GWh]
Topics
Potential of wind energy in Hungary
Facts and figures
Legal framework, support scheme
Regulatory issues, energy storage, R&D
Outlook 2020
National Renewable Action Plan
(NREAP) 2020
For 2020 the European Union set the objective to
achieve 20% of renewable energy in the total energy
consumption; 20% energy efficiency increase and 20%
reduction in greenhouse gases compared to 1990.
In line with EU Directive 2009/28/EC Hungarian
Government has approved the National Renewable
Utilization Action Plan in 2010.
In the NREAP Hungary undertook that 14,65% of its
overall energy consumption will be produced by RES.
NREAP foresees 750 MW inbuilt wind capacity and an
annual electricity generation of 1,545 GWh within 2020.
Licensing of Small Power Plants
The construction of energy generation facilities is
subject to a number of construction and planning
regulations, which must be complied with in order to
obtain the necessary permits. The relevant permits are
among others:
Environmental permit;
Building permit;
Approved grid connection plan;
Combined small power plant license.
Capacity Distribution Tender
Procedure
Pursuant to the Act LXXXVI of 2007 on electric energy
(“EA”) anybody is entitled to set up new generation
capacity at its own business risk.
However, with regard to the governance and secure
operation of the electricity system the EA limits the
inbuilt capacity of wind turbines and wind farms as
weather-related generation units. In light of the limited
technical means new wind generation capacities may be
installed by way of capacity distribution tender
proceedings.
Feed-In Tariff System
The EA expressly endorses the use of renewable sources
as energy source for power generation.
To support these goals there is a feed-in tariff system
(„KÁT”) for electricity generated from renewable
sources, whose comprehensive revision and re-
regulation is currently in process.
The new support scheme, the so-called „METÁR” system
is likely to enter into force next years and a common 10-
15 years feed-in obligation period and kWh prices
defined by laws is expected.
Price Risks of Different Support
Schemes
37
RES Integration Project, 2012
Feed-In Tariff Prices for Electricity
Produced by Wind Turbines
38
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2008 2009 2010 2011 2012 2013
HUF/kWhwithoutVAT
Feed-in tariff produced RES-E by wind (licence before 1st January 2008 from HEO) All period
Feed-in tariff produced RES-E by wind(licence after 1st January 2008 from HEO) Peak period
Feed-in tariff produced RES-E by wind (licence after 1st January 2008 from HEO) Valley period
Feed-in tariff produced RES-E by wind (licence after 1st January 2008 from HEO) Deep valley period
MEH alapján, 2013
Topics
Potential of wind energy in Hungary
Facts and figures
Legal framework, support scheme
Regulatory issues, energy storage, R&D
Outlook 2020
Energy Balancing
There is an increasing demand to compensate
the gap in the power system
Lack of sufficient internal reserves
There is need for extra resources:
Buying reserves through interconnects (market
coupling)
Regulating the production of wind turbines
Using energy storage
43
Energy Storage
Increasing need to store surplus electricity
and deliver it on demand when shortage
Large-scale energy storage technologies
Pumped hydropower
Hydrogen
Geological
Batteries (NaS, Li, VRB)
45
Pumped Hydroelectric Storage
During electricity surplus water is pumped up
in the upper storage
During increased demand water falls and
generates electricity
46
Batteries
Surplus electricity is converted to DC voltage
which charges batteries
Inverters are converting DC voltage into AC
voltage
48
Wind Industry, Even With Energy
Storage Costs, Is Sustainable
Researchers from Stanford look at the
energetic cost of energy storage technologies
for the electrical grid,
They concluded that you could create a
sustainable energy system that grows and
maintains itself by combining wind and
storage together (the faster you grow, the
more energy you need to build new turbines
and batteries).
Source: http://dailyfusion.net/2014/03/wind-industry-energetically-sustainable-27447/
49
Green Energy Project
„Green Energy” – Cooperation of the higher
education sector for the development of
green economy in the area of energetics
International innovation and research
collaborations
50
Green Energy Project – Research
Areas of the Knowledge Centre
51
Knowledge
Centre
NUCLEAR
technologies
WIND
technologies
BIOMASS to
ENERGY
technologies
HYDROGEN
technologies
2nd and 3rd
generation fuel
production
based on
biotechnology"
Development
of Green
Economy
Green and
environmental
protection
technology
GEOTHERMAL
technologies
WASTE TO
ENERGY
technologies
SOLAR
technologies
Green Energy Project – R&D Fields
for Wind Technologies
The project has identified several fields for
R&D in wind technologies:
Decentralized power production
Combined power plants: wind+PV
Small wind turbines
Generators
Energy storage
We still need international partners
(consultants, manufacturers, R&D Centers)
52
Topics
Potential of wind energy in Hungary
Facts and figures
Legal framework, support scheme
Regulatory issues, energy storage, R&D
Outlook 2020
Wind Power Barometer – EUROBSERV’ER – 2013. febr
Comparison of the Current Trend Against the NREAP
Roadmaps of the EU27 Countries (GW)
Average MW That Need to Be Installed Yearly in
Order to Achieve 2020 Targets
EWEA, 2011
Hungary set a goal of
750MW until 2020. -
There is need to build
yearly 60-90 MW in
order to achieve the
goal.