1. Introduction of the energy policy directives of the EU in Hungary Balatongyörök, 26 March 2009 Dr. Péter Gordos Secretary of State Ministry of Transport, Telecommunication and Energy

2. Content I.Energy strategy of the EU II.Major challenges of the Hungarian energy policy III.Hungarian measures

3. Energy strategy of the EU on the basis of the Second Strategic Energy Review The Commission proposes a „Safety and Solidarity Action Plan” in the following five areas:  infrastructure and supply diversification;  energy foreign relations;  establishment of crude oil and natural gas stocks;  energy efficiency;  better utilisation of resources within the EU

4. I. Priorities of infrastructure development and supply diversification  Construction of Southern natural gas corridor (Nabucco);  LNG (liquefied natural gas) Action Plan;  Development of North - South interconnection of the natural gas and electric energy network of South-Eastern Europe;  Baltic Interconnection Plan;  Mediterranean Energy Ring;  Offshore Wind Energy Network on the North Sea

5. II. Development of foreign relation in the field of energy policy  Reliable partnership with the transporter and transit countries;  On the basis of the acquis communautaire and the Energy Charter;  Renewal of partnership cooperation with Russia;  „Speaking with one voice”;

6. III. Establishing crude oil and natural gas stocks  Revision of 2006/67/EC Directive: strengthening the obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products ; Revision of 2004/67/EC Directive: strengthening measures to safeguard security of natural gas supply and the obligations on Member States to maintain minimum stocks of natural gas;

7. IV. Energy efficiency package Review of the following directives, broadening of product range and stricter conditions  Energy labeling of energy consuming products;  Energy efficiency of buildings;  Eco-design;  Cogenerated heat and energy production

8. V. Better utilization of resources within the EU  Proportion of renewable energy sources should be increased to 20% in the European Union by 2020;  Use of hard coal;  Crude oil, natural gas, peat;  nuclear energy; More efficient utilization of reserves / increase of proportion

9. Content I.Energy strategy of the EU II.Major challenges of Hungarian energy policy III.Hungarian measures

10. Major challenges in the field of energetics  Energy import dependency – safety of supply;  Energy prices – competitiveness;  Through the role of the state, energy efficiency can be improved and the use of renewable energy can be increased – sustainability;  To create harmony with the evolving community energy policy and to influence it according to domestic interests.

11. Safety of supply To maintain and improve continuous and safe energy supply.  Energy resource - structure  Energy import diversification  Strategic energy resource reserves ObjectiveSubareas

12. Competitiviness Energetics should contribute to the improvement of Hungarian competitiveness Liberalized energy markets, Energy prices, social benefits Up-to-date distance heating ObjectiveSubareas

13. Sustainability To implement the principles of sustainable development Energy efficiency, conservation Renewable energy sources ObjectiveSubareas

14. Content I.Energy strategy of the EU II.Major challenges of Hungarian energy policy III.Domestic measures

15. Safety of natural gas supply Extending storage capacity  The establishment of the minimum stocks of natural gas should be continued according to the original plans, thereby the Hungarian stocks of natural gas will increase to 1,2 billion m 3 from the presently available 500 Mm 3 by the end of the year;  According to the known investment plans, the capacity of commercial storages will grow from the present cca. 3,7 billion m 3 to 4,1 billion m 3 in 2010, and to cca. 4,8 billion m 3 in 2011;  Parallel with this, the present 53,2 Mm 3 /day capacity of commercial storages will increase to 62,2 Mm 3 /day in 2011. New transport routes In order to diversify the resources, the establishment of alternative gas transmission routes should be continued, either in the case of the Nabucco, or the Southern Stream pipelines or the LNG terminal. System connection  Hungary as centre of distribution;  NETS program;  Croatian-Hungarian, Rumanian-Hungarian, Slovakian-Hungarian system connection pipelines;

16. Aid to the coal industry  Strengthening the energy safety of the European Union through the utilization of domestic primary energy sources could justify the maintenance of coal production facilities.  In 2005, Hungary submitted a restructuring plan of the coal mining industry to the European Commission in compliance with Council Regulation (EC) No 1407/2002 on State aid to the coal industry.  The contingency plan includes detailed measures for the period 2004-2014. Regarding the fact that Council Regulation 1407/2002/EK shall apply until 31 December 2010, the Commission acknowledged the Hungarian declaration but approved it until 31 December 2010.

17. Capacity of nuclear power plants Extension of the time in service of the Paks Nuclear Power Plant Submission of Programme: four years prior to the expiry of the planned time in service at latest (by 15 December 2008)  Paks Nuclear Power Plant Zrt submitted the Extension Programme to OAH-NBI on 14 November 2008.  Request of Operation Licence: one year prior to the expiry of the valid operation licence of the planned time in service Governmental decree proposal no. H/9173 on new blocks  11 March 2009. – the government adopts the ministerial proposal on new nuclear power plant blocks;  13 March 2009. – the Ministry of Transport, Telecommunication and Energy submits the proposal for decision no. H/9173 to the Parliament;  18 March 2009. – the Economic and Informatics Commission unanimously supports our parliamentary proposal for decision no. H/9173 ;  30 March 2009 – the Environmental Protection Commission discusses the proposal for decision and the plenary session is expected to start next week - general debate

18. Energy efficiency The government has adopted the National Energy Efficiency Action Plan [2019/2008 (II. 23.) gov.decree] Impacts of energy efficiency  Decreasing import dependency;  Improvement of environment and awareness raising;  Decreasing energy prices of the population; Funds for supporting energy efficiency investments  Energy Efficiency Credit Fund;  Panel Program;  ECO Program;  National Energy Efficiency Program (NEP);  Environmental and Energetics Operative Program (KEOP);  Planned Green Investment System;

19. Renewable energy sources  The proportion of renewable energy sources will be increased to 13 % in the energy consumption of Hungary by 2020;  By 2013, about 100 billion HUF for renewable energy sources and energy efficiency in the Environmental and Energetics Operative Program (KEOP); the source of the other programs yet uncertain;  On 4 September 2008, the government adopted the Strategy to increase the utilisation of renewable energy sources. Table of results of the POLICY scenario (PJ) Total renewable energy consumption2005201020152020 Total49,92103,66149,54186,28 Bio fuel0,2110,4616,2719,55 Total (without bio fuel)49,7193,20133,27166,73 Hydro energy0,730,710,790,88 Wind0,042,024,046,12 Solar energy (solar panels+ collector)0,080,531,101,66 Geothermic3,635,608,4011,36 Biomass43,5678,08107,04130,81 Biogas + bio methane0,303,909,0612,57 Renewable waste1,382,352,843,33

20. Thank you for your attention www.khem.gov.hu