Opportunities in the Hungarian Wind Energy Market

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


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

Global Wind Speed Map at 80m (5km resolution)

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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

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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

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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

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Topics


Global Cumulative Installed Wind Capacity 1996-2013

11 Source: GWEC, 2014

Global Annual Installed Wind Capacity 1996-2013


Annual Installed Capacity by Region 2005-2013


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

Cumulative Wind Power Installations and Share in EU

17 EWEA, 2014

Annual Wind Power Installations in EU (GW)

In 2013 in EU were built

11 GW wind turbines, out of them

1,567 MW offshore.

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EWEA, 2014

Annual Onshore and Offshore Installations (MW)

EWEA, 2014

EU28 States Market Share for New Capacity Installed During 2013

20 EWEA, 2014

Net Electricity Generating Installations in the EU 2000-2013 (GW)

24 EWEA, 2014

Wind Power Share of Total Electricity in EU and in Member States in 2012

EWEA, 2013

Annual Installed Wind Capacity in Hungary (MW)

26 MSZET, 2012

Geographical Distribution of Wind Turbines

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# of Turbines: 172 Capacity: 329.325 MW

MSZET, 2011

Share of WTG Manufacturers on the Hungarian Market in 2011

28 MSZET, 2011

Annual Wind Energy Production (GWh)

29 MSZET, 2013

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GW

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Topics


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

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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


System Load in a Typical Day

Wind Production in a Typical Day

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

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Hungarian Power System

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)

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Pumped Hydroelectric Storage

During electricity surplus water is pumped up in the upper storage

During increased demand water falls and generates electricity

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Hydrogen

Surplus electricity converts water into hydrogen (and oxygen) through electrolysis

Hydrogen is used as a fuel in special fuel cells

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Batteries

Surplus electricity is converted to DC voltage which charges batteries

Inverters are converting DC voltage into AC voltage

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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/

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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

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Green Energy Project – Research Areas of the Knowledge Centre

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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)

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Topics


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.

Government Decree No. 1002/2011 Sets Clear RES-E Target

56

Expected and Realized Wind Capacity and RES-E Production in NREAP Until 2020 in Hungary

57

692 692

929

1150

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1377 1404 1450

1483 1504 1545

4 5 10

39 107

205

289

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Expected wind capacity in NREAP until 2020 MW Realized wind capacity MW

Expected RES-E production from wind in NREAP until 2020 GWh Realized RES-E production from wind GWh

Actual and Planned Sites for Wind Parks Ready for Capacity Tender

58 MSZET, 2011

Thank you for your attention!

Contact details:

E: [email protected]

M: +36-30-2323093

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mailto:[email protected]

See You on the Next Conference!

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