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The Role of Distributed Generation in Hungary and in the Region

The Role of Distributed Generation in Hungary and in the Region. dr. Gábor Szörényi Director, Hungarian Energy Office. Challenges, burdens and opportunities in the distributed electricity generation. May 8 , Budapest - MAKK. 4. Lithuania. Estonia. Latvia. 2. Poland. Montenegro.

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The Role of Distributed Generation in Hungary and in the Region

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  1. The Role of Distributed Generation in Hungary and in the Region dr. Gábor Szörényi Director, Hungarian Energy Office Challenges, burdens and opportunities in the distributed electricity generation May 8, Budapest - MAKK

  2. 4 Lithuania Estonia Latvia 2 Poland Montenegro Russian Federation UNMIK Kosovo Bosnia and Herzegovina Hungary Croatia Ukraine Romania Mongolia Bulgaria Serbia Armenia Kazakhstan Azerbaijan 1 Moldova Macedonia Georgia Kyrgyz Republic Albania Turkey Jordan 3 The Regional Group of ERRA Members

  3. Export-Import Balance GROUP 1. Energy balance Regional Consumption, Production and Trade balance ERRA Group 1.: Net export

  4. Price of electricity (only the energy component) paid by non-household consumers Energy („only”) prices EEX prices (2008)

  5. Market situation in CEE, SEE regions (1) • Massive demand increase • Insufficient new generation investment • Low utilisation (aged generators) • Political interventions (argument: security of supply of national market) • Highly concentrated national markets (national champions, PPA structure)

  6. Market situation in CEE, SEE regions (2) • The price difference between the region with adequate resources + developed market conditions and the regions with capacity shortage + immature market rules could reach 20 EUR/MWh in 2008 • This price tendency has significantnegative effects on end-user price and through this on the whole national economy! • No clear renewable targets

  7. Consequences: • Demand Response Programmes needed • Uneconomical By-pass tendency (new self-generation tendency) • Investors are interested in new generation with guaranteed „feed in” • Hopefully new large scale generation investment as well

  8. Potential support of HEO • Suggested amendment of feed in tariff system (handle of imbalance) • Predictable calculation method of return on investment (licensing) [strong hesitation!!] • Tendering procedure for new projects • Network connection problems (waiting for suggestions!) • Smart metering (public consultation) • HEO building – as potential demonstration project HAVE A BENEFICIAL DISCUSSION!!!!

  9. PRESENT FORESEEN FUTURE

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