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MSZET Hungarian Wind Energy Association UTILISATION OF WIND ENERGY IN HUNGARY IN 2009

Author and Presenter: Gábor Csákány MSZET West Transdanubian regional manager NRG Systems Ltd (Vestas Cental Europe – Sales Hungary) managing director Co-authors: Tamás Tóth – Hungarian Energy Office Péter Tóth – President MSZET.

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MSZET Hungarian Wind Energy Association UTILISATION OF WIND ENERGY IN HUNGARY IN 2009

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  1. Author and Presenter: Gábor Csákány MSZET West Transdanubian regional manager NRG Systems Ltd (Vestas Cental Europe – Sales Hungary) managing director Co-authors: Tamás Tóth – Hungarian Energy Office Péter Tóth – President MSZET MSZET Hungarian Wind Energy AssociationUTILISATION OF WIND ENERGY IN HUNGARY IN 2009

  2. Utilisation of wind energy in Hungary in 2009Actual data of the Hungarian power system (Source: MAVIR Zrt.)‏

  3. Utilisation of wind energy in Hungary in 2009Main data of the electricity system, 2007 • Production: 40 000 GWh • Import: 14 278 GWh • Plant self-consumption,grid loss: 6 838 GWh • Inland consumption: 37 149 GWh • Export: 10 291 GWh Source: KSH (Central Statistical Agency, Hungary)‏

  4. Utilisation of wind energy in Hungary in 2009Share of the domestic electricity production, 2007 38 % natural gas 37 % nuclear energy 13 % lignite 6 % coal 5 % renewable energy- thereof 0,3 % wind energy 1 % oil Source: MAVIR Zrt.

  5. Utilisation of wind energy in Hungary in 2009Governmental policy New EU target for Hungary: 13 % share of renewable energy sources by 2020 The three elements of the Hungarian energy policy 2008-2020: security of supply, competitiveness, sustainability Green electricity target by 2020:7557-9470 GWh

  6. Utilisation of wind energy in Hungary in 2009Disposal of electrical energy in the frames of compulsory taking-over Compulsory taking over (KÁT) system: The KÁT system has the objective to support the rising share of cogeneration heat and power and energy production based on renewable sources and on waste within the total energy production. The KÁT system has been in operation since 01.01.2008, the liberalization of the Hungarian electricity system.

  7. Utilisation of wind energy in Hungary in 2009Disposal of electrical energy in the frames of compulsory taking-over Responsible: MAVIR Zrt. the Hungarian Transmission System Operator Fix feed-in price guaranteed: - for a certain period of time; - raised every year by the inflation rate.

  8. Utilisation of wind energy in Hungary in 2009Feed-in price Current feed-in price for wind turbines within the 330 MW barrier: 0,095 c€/kWh (MNB Hungarian National Bank exchange rate of 02-03-2009: 1 EUR = 296 HUF)‏

  9. Utilisation of wind energy in Hungary in 2009Subvention The KÁT subvention is distributed as follows (1st half of 2008): (MNB Hungarian National Bank exchange rate of 02-03-2009: 1 EUR = 296 HUF)‏

  10. Utilisation of wind energy in Hungary in 2009Subvention proportions within renewable energy(alltogether 25 %)

  11. Utilisation of wind energy in Hungary in 2009Disproportions of the subvention Within renewable energy biomass is supported disproportionally much: mostly old-technology mixed fired (lignite and wood) thermo power plants bad efficiency using mainly whole trees behalf of wood chips

  12. Utilisation of wind energy in Hungary in 2009Disproportions of the subvention Gas turbines supported also disproportionally much These need to be changed in order to meet renewable target in 2020

  13. Utilisation of wind energy in Hungary in 2009Current situation in the wind energy market 75 units of wind turbines alltogether 139,325 MW (end of February 2009) of installed wind power capacity

  14. Utilisation of wind energy in Hungary in 2009Installed wind power capacity 2000-2008 75 pcs wind turbines Alltogether 139,325 MW of wind power Installed capacity:

  15. Utilisation of wind energy in Hungary in 2009Market situation – wind turbine manufacturers Vestas is market leader with 57,875 MW and with 41,54% market share Gamesa, RePower and Enercon on 2nd,3rd, 4th place

  16. Utilisation of wind energy in Hungary in 2009Positive law environment before 11th November 2005 Three-step authorization process: environmental permit building permit grid connection contract More than 3000 MW windfarms under development, possessing environmental permit

  17. Utilisation of wind energy in Hungary in 2009Negative changes in law environment Government edict Nr. 246/2005 (XI.10.): Four-step authorization process Additionally: MEH (Hungarian Energy Office) license Introducing the barrier of 330 MW pleading electrical system regulation problems

  18. Utilisation of wind energy in Hungary in 2009Penalty system: Edict 389/2007. (valid: 01.01.08 - 30.11.08)‏ Production plan for every 15 minute interval Monday to Friday forecasting (sometimes 3-4 days in forward)‏ Deviation range +/- 30 % regarding 15 minute intervals If 30% exceeded penalty after every kWh deviation within the 15 min interval Penalty from beginning of the operation

  19. Utilisation of wind energy in Hungary in 2009Penalty system: Edict 389/2007. (valid: 01.01.08 - 30.11.08) No service company able to provide such precise meteorological / production data Consequence: Average penalty between 1c€ - 2,5c€ / kWh

  20. Utilisation of wind energy in Hungary in 2009Penalty system: Edict 389/2007. (valid: 01.01.08 - 30.11.08)‏ MSZET, the Hungarian Wind Energy Association appealed to the Hungarian Constitutional Court to abolish the penalty system. Law suit is in progress.

  21. Utilisation of wind energy in Hungary in 2009Penalty system: Modification: Edict 287/2008. (valid from 30.11.08) Production plan for every 15 minute interval Monday to Monday forecasting (only 1 day in forward)‏ Deviation range +/- 50 % regarding 1 day intervals If 50% exceeded penalty after every kWh deviation over the 50% deviation within the 1 day interval Penalty after 6 months after beginning of the operation (6 months grace period)‏ Regulation stays in effect till 02.01.2011

  22. Utilisation of wind energy in Hungary in 2009Modification of the penalty systemConsequences Relief for the wind farm operators However main goal remains to abolish the penalty system Average penalty decreases Appropriate data on penalty after 6 months after the new edict came into effect

  23. Utilisation of wind energy in Hungary in 2009Future potential for wind energy New quotas needed: 330 MW barrier should be lifted (legislation works on this issue)‏ Greenpeace urges 1000 MW capacity Permission process should be simplified If gas power plants were used for regulation in stead of base load power stations, more wind turbines could be brought into the network.

  24. Thank you for your kind attention! E-mail: g_csakany@nrg-systems.hu www.mszet.hu www.windturbines.hu

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