6th Inter-Parliamentary Meeting on Renewable Energy and Energy Efficiency 6-8 October 2005

1. 6th Inter-Parliamentary Meeting on Renewable Energy and Energy Efficiency 6-8 October 2005 Edinburgh, UK Dr Andor Nagy, MP Hungarian National Assembly Environmental Committee

2. CONTENTS • Energy efficiency before the political system change • Energy efficiency since 1990 • Renewables in Hungary

3. SOCIALIST HERITAGE • Energy policy of the socialist area = a huge amount of waste • Example of a Hungarian family living in a pre-fabricated block-house

4. ENERGY EFFICIENCY SINCE 1990 • Principles of the Energy Efficiency Action Programme in Hungary • To prove the environmental point of view in producing and using energy, in the future developments (Environmental Act in 1995) • To attract attention to the energy economy, and to increase the importance of the renewable energy (several strategies for energy savings, and increasing energy efficiency improvement) • To create a secure environment for the market (foundation of the Hungarian Energy Office in 1994, and privatisation of the sector)

5. ENERGY EFFICIENCY 1. The National Energy Saving and Energy Efficiency Improvement Programme in 1995. (Major issues: least-cost planning, demand-side management, implementation of minimum standards for the insulation of new buildings, etc.) 2. Energy Saving Action Plan in 1996 (Focuses on the penetration of renewables, energy efficiency improvements – labelling and education, technological innovation.) 3. Energy Saving Credit Programme in 1996 (total investment spent on energy efficiency project: EUR 17.6 million. The ESCP focused on funding energy saving programmes at the municipial level, modernisation of the district heating systems.)

6. ENERGY EFFICIENCY • 4. Hungarian Energy Policy Principles and the Business Model of the Energy Sector in 1999: • Following Hungarian and EU developments, • Privatisation of the sector, • EU liberalisation Directives, • Kyoto commitments, • Targeted to create a new energy efficiency policy for conversation

7. ENERGY EFFICIENCY • Energy Saving and Energy Efficiency Improvement Action under the number 1107/1999. - Duration of the program is 10 years. - Minister of economy is responsible to coordinate - All the goals were defined to obtain by 2010. - Priorities of the strategy: Reduction of energy intensity with 3,5% per year (annual growth of GDP 5% per and of energy consumption 1,5%) Saving 75 PJ/year of primary energy sources Increasing the renewable energy production from the present 28PJ/year to 50 PJ/year

8. ACTION PLAN – 15 FIELDS 1. Revealing the European funds to contribute in the declared development. 2. Raising the awareness in the society: education in the school to create a basic knowledge informations through consumer offices, experts, media and different types of brochures use of the energy efficiency label on the products. 3. Research and Development tasks connected to energy conservation and increasing the use of renewables.

9. ACTION PLAN – 15 FIELDS 4. Developing a system of audits for energy loss in the manifacturing sector 5. Improving energy management system in the municipals 6. Least cost planning, consumer-friendly programmes

10. ACTION PLAN – 15 FIELDS 7. Improving energy saving in transportation 8. Decreasing the use of industrial energy 9. Modernisation of transport 10. Development of energy technology in the agriculture 11. Assistance of residential and public energy saving

11. ACTION PLAN – 15 FIELDS 12. Increasing the use of alternative facilities 13. Modernising energy use in the municipial sector for public lighting 14. Innovation of district-heating system 15. Increasing the use of biomass and geothermal energy / solar energy

12. EFFICIENCY MEASUREMENT • Allocation of EUR 4 M for the first year. For next years EUR 20 M • Széchenyi Plan, since 2000 addressed EUR 1,5 M for the investments of renewables • Public Sector Energy Efficiency Programme aims to improve the energy efficiency in the public sector (municipal buildings, schools, hospitals, etc.) The budget of the programme approx. EUR 4,2 M • National Energy Saving Programme was established to replace Széchenyi Plan. • Renewables also for municipalities and residentials. • Aims to develop the technology of the buildings, giving financial contribution to municipalities and private owners. • In 2003 over 5000 application was made.

13. SUMMARY OF ENERGY EFFICIENCY SITUATION • Initial steps are made toward the EU standards • Emmissions: Hungary is below the quota according to Kyoto Protocol • Rationalisation of the energy consumption has improved during the last 15 years: but this is due to the structural change in the industry • Lot of reserves in residential consumption: ‘Panel+ Programme’

14. RENEWABLES IN HUNGARY • The share of the renewable energy in the whole gross energy consumption: 3,5-4% • The aim for 2010: 5,5-6% • The share of renewables in gross electricity consumption: 0,9% • The aim for 2010: 3,6%

15. RENEWABLES IN HUNGARY • Biomass: the sleeping giant • Hungary has a huge potential of biomass (good energy plans, energy corps) • Geothermical energy: thermal water under the 60% of Hungarian ground surface • Great reserves but technological problems • Only 300 out of 3000 thermal resources are in use

17. Thank you for Your kind attention! andor.nagy@parlament.hu