180 likes | 339 Views
ELI Challenges in Hungary. Zoltán LONTAY EGI-Contracting/Engineering, Budapest, Hungary ELI Workshop July 9-15, 2000 Mariánské Lázně Czech Republic. Hungary: a country in transition. 1989 : change of the political/economic system
E N D
ELI Challenges in Hungary Zoltán LONTAY EGI-Contracting/Engineering, Budapest, Hungary ELI Workshop July 9-15, 2000 Mariánské Lázně Czech Republic
Hungary: a country in transition 1989: change of the political/economic system 1989: start of transition to western type democracy and market economy 1990-1996: painful transition (economic collapse, unemployment, high inflation, social inequities) Since 1997: light in the tunnel (stabilization of economy, growing GDP, OECD and NATO membership etc.)
Hungary today • National target: EU accession (be prepared by 2002) • Rapid capitalistic development with all its good and bad effects • Winners and losers • Strong belief: the market will do the job • Withdrawal of state from politics, economy, and administration • Open economy
The Energy Sector • Heavy import dependence (58%) • Liberalized oil and coal products market • The former integrated power and gas complexes split and privatized • National regulatory body for gas and power licensing and price setting • District heating supervised by the local governments • No state subsidies on energies
The Power Sector • Three level system (generation, transmission, distribution) • Power generation companies and DISCOs in foreign private hands (RWE, EdF, Bayernwerk, AES, Powergen, Tractebel, etc.) • Regulated prices (3.0-8.0 cents/kWh), no subsidies, diminishing cross-subsidies • Addressing environmental issues • Preparations for liberalization of the market in 2001 • DSM in the past and in the future
Energy Efficiency • EE strongly needed for economic, strategic, and environmental reasons • Main driver for end-users: high energy prices (electricity price index 1989-1999: 5-8) • The market does the job, but not perfectly • Three categories of residential end users • Limited state intervention • Rich in traditions, poor in funds • Mixed experience with assistance programs
Lighting in Hungary • Traditions with lamp manufacture (Tungsram - GE) • Due to the existence of domestic manufacturers relatively low equipment prices • Residential sector: fairly good awareness of CFLs built by “The Three Big Ones” • Fluorescent program in the public sector in the ‘70s and ‘80s • Modernization efforts after 1990 (indoor lighting neglected)
Barriers to efficiency improvement • Imperfect awareness (mainly in the residential sector) • Poor economic effectiveness, high first costs in the C/I/I sectors • Indoor projects may be too small to attract ESCOs • Cream skimming in street lighting • Imperfect availability to equipment in rural areas • old routines / habits followed by designers and operators
Main Strategy Elements • Residential sector: develop awareness matching the present market conditions • C/I/I sectors: assist market players (professionals, designers, ESCOs, FIs, etc.) who will do the job, educate owners
ELI Projects to be analyzed • Residential awareness campaign • Training for professionals • Utility program • Information supply for the public sector
Status of implementation • GEF approval • Budget allocated • Consultants selected • Appraisal and inception phases performed • From now to mid-September: program design(focus on a small number of high impact projects, detailed workplan for the 2 year’s implementation period)
Residential Awareness Campaign (1) Messages: • extended CFL use helps to save energy and money • to meet expectations quality products have to be applied (ELI labels) • other low energy lighting technologies (daylighting, linear tubes, controls, etc.) to be considered • energy aware behavior is important
Residential Awareness Campaign (2) Tools / participants (multilevel campaign) • TV programs (no advertisements) • other media programs • NGO programs • energy advise centers • brochures, publications • school programs • partnerships, networking
Training for Professionals (1) Scope of „professionals”: • lighting design engineers (20-50 people) • electric engineers, who practice design without proper education (400-500 people) • ESCOs (5-8 companies) • to be ESCOs (ca. 50 companies) • operators of lighting systems (1000’s)
Training for Professionals (2) Training tools: • courses (with different levels, durations, geographical locations, etc.) • training materials • network development (database, introduction days, etc.) • sample contracts (ESCO - project owner, ESCO - FI) • support for project development • professional advising service
Utility Program: set an example Package containing • training for street lighting ESCO • market research and development of ESCO business plan for indoor lighting modernization of the C/I/I sectors (novel approach) • residential CFL program for peak shaving and PR purposes
Information supply for the Public Sector • raise interest for efficient lighting in this important market sector • address both street lighting and indoor lighting • introduce „ELI Forces” • interconnections with other projects • media campaign, sample projects, educational materials, gathering(s), transaction support, etc.
Challenges • Residential sector: convey the proper message through the proper channels • C/I/I sectors: identify market segments in which lighting upgrade is cost effective • All sectors: M&E