1. Potential for Technology Transfer in Hungary
Miklós Székely
Renewable energy and climate policy expert
11 October 2016

2. Basic Facts about Hungary
Population
GDP (2015, PPP)
GDP per capita
(2015, PPP)
GDP growth
GHG emissions (excluding LULUCF, 2014)
CO2 emissions per capita (excluding LULUCF, 2014)
inhabitants
$ billion
$26 200
+ 2.9% in 2015
57.2 Gt- CO2 eq
5.8 t-CO2 eq
CO2 emissions per unit of GDP (2011)
Main tendency in CO2 emissions per capita
Exports to Japan (USD, 2015)
Imports from Japan (USD, 2015)
Business Risks
Corruption index
0.2 kg CO2 per USD
Declining
$1.29 billion
$1.05 billion
42nd out of 189 countries
51 on a 100 scale

3. 1.1 TT Potential in the Energy Conversion Sector
Emissions from the sector:
13.7 Mt CO2 (23% of total)
Regulated by EU-ETS
Emissions to be covered with EUAs (power plants using fossil feedstock)
Renewable energy target to gross final consumption: 14.65% by 2020 (~10% in 2016)
3.5% combustion of firewood…
Transatlantic cooperation

4. 1.2 TT Potential in the Energy Conversion Sector
Irinyi plan (industry development); R+D+I:
Energy storage capacities for REs (mainly solar)
Smart grids
Smart public lighting
Smart metering
Biomass  biogas plants
(central heating & E)
Objective:
Increasing the sector’s technology readiness level (TRL) for TT
CON:
Wind farms have been banned!

5. 2.1 TT Potential in the Household Sector
Emissions from the sector:
6.5 Mt CO2 (10-12% of total)
Energy consumption of buildings:
40% of total E consumption (inefficeincy!)
Regulated by EU ESD (non EU-ETS):
10% increase of emissions by 2020 compared to 2005
Existing targets:
49 PJ/year energy savings for 2020 (111 PJ/year for 2030)
1.5% energy savings annually by distributors or retail co. by 2020 (50 PJ/year savings potential for 2020)

6. 2.2 TT Potential in the Household Sector
Family Homemaking Support Scheme (FHSS):
Boosting new housing construction by 35-40%
New buildings (7/2006 decree, 2010/31/EU):
doors, walls and ceilings have to save 40% more energy than current appliances by 2020  near-zero energy efficiency public and private buildings partly achieved by using RE
TT potential in energy efficient housing appliances
Weak implementation of the 1.5% annual energy savings rule

7. 3.1 TT Potential in the Waste-to-Energy Conversion (WtEC) Sector
Emissions from Waste sector:
4.2 Mt CO2 (7.5% of total)
Incineration and open burning: 0.2 Mt CO2 (0.3% of total)
Regulated by EU ESD (non EU-ETS): 10%
Only 1 WtEC installation:
Municipal Waste Recovery Plant of Budapest
Recovers 0.7 Mt of MSW annually
Hungary in 2011 recovered only 4.4% of its total MSW for energy

8. 3.2 TT Potential in the Waste-to-Energy Conversion (WtEC) Sector
The National Waste Management Public Service Action Plan:
To reduce waste disposal from the current 50%  10% by 2030  increase WtEC rate
Irinyi Plan (R+D+I; TT potential):
Pyrolysis for the recovery of food and livestock waste
Gasification of solid wastes for energy
A second WtEC to be built with a 0.25 Mt/year of MSW recovery capacity with an additional tons/year sewage sludge combustion potential

9. 4.1 TT Potential at Municipality Level
Emissions of municipalities:
Collapse of heavy industry in ’90s & heating modernization  emission reduction
Transport is the largest polluter: 27% increase by 2014 to 1990’s levels (3% higher than EU ave.)
Housing sector is also a noticable emitter
Each Hungarian municipality has to develop its environmental program; tasks and regulations on:
air pollution abatement
energy management
waste and wastewater treatment
public transportation and traffic

10. 4.2 TT Potential at Municipality Level
European Covenant of Mayors for Climate & Energy (CMCE):
31 Hungarian member municipalities with 20% to 30% GHG reduction targets by 2020
Elaboration of Sustainable Energy Action Plan (SEAP), now called Sustainable Energy and Climate Action Plan (SECAP)  helping to penetrate low carbon technologies
Association of Climate Friendly Municipalities:
33 member municipalities
Focusing on the need for horizontal climate adaptation actions

11. 4.3 TT Potential at Municipality Level
Existing EU funds for low carbon development; thematic Operational Programs:
Regional and Urban Development Operational Program (TOP) approx. $0.7 billion:
green city development, municipal environmental infrastructure development, sustainable urban transport development, energy modernization of municipal buildings
Economic Development and Innovation Operational Program (GINOP) approx. $0.75 billion:
Energy efficiency projects for SMEs and residents
Environmental and Energy Efficiency Operational Program (KEHOP) approx. $0.67 billion
Photovoltaic systems for central government agencies, building energetics development of churches, develop near zero-energy house pilots, building energetics development of public buildings

12. 4.4 TT Potential at Municipality Level
Greatest Reduction and TT potential locally: Transport e.g.
local public transportation
medical institutes
educational institutes
municipal waste collection
Jedlik Ányos electromobility strategy:
3 000 new EV charging stations
new environmentally friendly cars by 2020
Government support: 21% (max. $5 500) of any new E-car’s purchase price

13. 5.1 Other Relevant Information
Strong governmental support for nuclear energy capacity development:
Paks2, second nuclear power plant (2 400 MW)
National Energy Strategy (NES):
Nuclear-Coal-Green scenario until 2050 : maintaining the level of coal-based power generation (CCS and clean coal)
Punishing weather dependent renewable energy:
Impossible to comply with new wind energy regulations (no new wind turbine since 2011)

14. 5.2 Other Relevant Information
Green Economy Financing System (cca. $18.5 M) and Economy Greening System (cca. $20 M) funds are also available for residents and investors to carry out energy efficiency projects:
Backed by revenues from selling EUAs
Hungarian Investment Promotion Agency (HIPA)
Business incubation for projects of foreign investors
National Research, Development and Innovation Office (NKFI):
Managing R+D+I & International Technology Transfer

15. Thank you for your kind attention!