Hungary
Energy efficiency report
Objectives:
o
1.4 Mtoe of end-user energy savings by 2016, including 312 ktoe in industry
o
1.9 Mtoe of primary energy savings by 2030, including around 40% in the power sector
Overview 2011 2000-2011 (%/year)
Primary intensity (EU=100)¹ 123 - -1.8% ++
CO2 intensity (EU=100) 110 - -3.0% ++
CO2 emissions per capita (in tCO2/cap) 4.7 + -0.9%
-Power generation 2011 2000-2011 (%/year)
Efficiency of thermal power plants (in %) 33 - 0.9% +
Rate of electricity T&D losses (in %) 9.5 - -3.1% ++
CO2 emissions per kWh generated (in gCO2/kWh) 313 + -2.5% +
Industry 2011 2000-2011 (%/year)
Energy intensity (EU=100) 77 ++ -4.4% ++
Share of industrial CHP in industrial consumption (in %) 3.6 -- -4.1%
--Unit consumption of steel (in toe/t) 0.329 - -1.5% +
*2010 and 2000-2010 for steel
++
Among the best performing countries+
Above the EU average1-
Below the EU average1--
Among the worst performing countries1. Overview
1.1. Policies: 1.4 Mtoe energy savings target for 2016
Hungary’s National Energy Efficiency Action Plan (NEEAP) for the period 2008-2016 lays down a final energy savings target of 9 percent between 2008 and 2016, ie 1.4 Mtoe. Of those savings 37 percent should be achieved in the residential sector, 26 percent in public administration, 23 percent in industry, 8 percent in transport and 7 percent through cross-sectoral measures.
The National Energy Strategy until 2030, adopted in July 2011, sets a total primary energy savings target of 4.5 Mtoe by 2030, 59 percent of which should be achieved through the building energy program and 41 percent in the power sector.
According to the Renewable Plan adopted in January 2011, by 2020 energy savings should amount to 10 percent.
The Environment and Energy Operational Program (KEOP, 2007-2012) aimed to contribute to the targets set by the NEEAP and focused on achieving greater energy efficiency in public buildings, modernizing district heating and reducing heat losses, and achieving efficiency gains in the competitive sector.
1.2. Energy consumption trends: few changes in energy consumption since 1990
Hungary’s energy consumption per capita is about 24 percent below the European average (2.5 toe/capita in 2011).
Total energy consumption increased slightly between 1992 and 2005 and has been declining since then (-1.5 percent/year until 2011). In 2009 alone it decreased by 6 percent as a consequence of the global economic slowdown.
Figure 1: Energy consumption trends by sector
0 5 10 15 20 25 30 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 M to e
Other Industry Power generation
Source: Enerdata
The power and industry sectors account for 20 percent each of total energy consumption2.
Gas and oil cover more than 60 percent of primary energy consumption, with 37 percent and 25 percent, respectively, in 2011, followed by electricity with 17 percent. The share of coal in primary consumption is declining rapidly, from 20 percent in 1990 to 11 percent in 2011, to the advantage of biomass (from 2 percent to 7 percent).
Hungary’s electricity consumption per capita is 36 percent lower than the EU average (around 3,600 kWh in 2011). Total electricity consumption has been increasing regularly since 1993 (+1.4 percent/year), with the exception of a 5.7 percent drop in 2009 caused by a sharp fall in industrial demand (-18 percent).
The residential and services sector is the largest electricity consumer in Hungary. Its electricity consumption grew steadily over the 1990-2011 period, at a faster pace than that of industry. As a result, the share of electricity consumed by industry has fallen from 46 percent in 1990 to 34 percent in 2011.
Figure 2: Electricity consumption trends by sector
0 5 10 15 20 25 30 35 40 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 TW h Industry Others Source: Enerdata
1.3. Energy efficiency trends: significant energy intensity reduction
Total energy consumption per unit of GDP (primary energy intensity) has decreased regularly since 1990. This gain in overall energy efficiency was similar to the EU trend. However, Hungary’s primary energy intensity, measured at purchasing power parity, remains 23 percent higher than the EU average.
Since 2000, the power sector has driven the reduction in energy intensity: the replacement of oil and coal-fired facilities by high efficiency gas-fired units contributed to 40 percent of the reduction in primary intensity between 2000 and 2011. Efficiency gains in industry contributed to 27 percent of the overall decrease.
Figure 3: Energy intensity trends
-2.0% -1.8% -1.6% -1.4% -1.2% -1.0% -0.8% -0.6% -0.4% -0.2% 0.0% 1990-2011 2000-2011 % /y ea r
Other sectors : buildings, transport and agriculture Industry
2. Power generation
2.1. Policies: 1.9 Mtoe energy savings target in the power sector for 2030
The National Energy Strategy until 2030, adopted in July 2011, sets a primary energy savings target in the power sector of 1.9 Mtoe by 2030, 47 percent of which should be achieved through the replacement of low efficiency oil- and gas-fired power plants, 31 percent through the replacement of coal-fired power plants, and 6 percent through the replacement of low-efficiency biomass-fired units. The remaining 15 percent would come from the reduction in grid losses.
2.2. Efficiency of the power sector: low but improving efficiency rate
The efficiency of the power sector in Hungary is poor, since low-efficiency technologies (nuclear and coal-fired power plants) dominate the power mix. However, over the years the electricity sector has improved its efficiency, from 29 percent in 1990 to 34 percent in 2011; this was achieved through efficiency improvements in thermal power plants, with an increasing share of CCGT facilities in the thermal mix (from 8 percent in 1990 to 30 percent in 2011) and a shift to gas.
Figure 4: Efficiency of power generation and thermal power plants
0 5 10 15 20 25 30 35 40 1 9 90 1 9 91 1 9 92 1 9 93 1 9 94 1 9 95 1 9 96 1 9 97 1 9 98 1 9 99 2 0 00 2 0 01 2 0 02 2 0 03 2 0 04 2 0 05 2 0 06 2 0 07 2 0 08 2 0 09 2 0 10 2 0 11
Total power generation Thermal power plants
%
Source: Enerdata
Figure 5: Thermal electricity capacity, by technology 0 1 2 3 4 5 6 7 8 1 9 90 1 9 91 1 9 92 1 9 93 1 9 94 1 9 95 1 9 96 1 9 97 1 9 98 1 9 99 2 0 00 2 0 01 2 0 02 2 0 03 2 0 04 2 0 05 2 0 06 2 0 07 2 0 08 2 0 09 2 0 10 2 0 11 G W
The rate of transmission and distribution losses (T&D) was nearing 9.5 percent in 2011, ie 46 percent higher than the EU average, despite a significant decrease between 1995 and 2011 (– 4.6 percentage points). Those losses were over 13 percent between 1993 and 2000, and were mainly caused by electricity theft rather than technical problems.
Figure 6: Electric T&D losses
0 2 4 6 8 10 12 14 16 1 99 0 1 99 1 1 99 2 1 99 3 1 99 4 1 99 5 1 99 6 1 99 7 1 99 8 1 99 9 2 00 0 2 00 1 2 00 2 2 00 3 2 00 4 2 00 5 2 00 6 2 00 7 2 00 8 2 00 9 2 01 0 2 01 1
%
Source: Enerdata 3. Industry3.1. Policies: target of up to 312 ktoe/year in energy savings by 2016
The second National Energy Efficiency Action Plan (2011) sets an energy savings target for the industrial sector of 312 ktoe by 2016. Measures to reduce the energy use of industrial companies should save 264 ktoe, while the additional 48 ktoe savings should be achieved through the improvement of the district heating network. The measures include the technological modernization of SMEs and the energy-efficient renovation of industrial, agricultural and commercial buildings, which will be financed through grants and credits under the New Széchenyi Plan.
Moreover, Hungary will continue the Energy Efficiency Credit Fund included within the PHARE3 program since
2000, which includes a soft-loan credit facility to support energy-efficiency investments by small and medium enterprises (mainly for the installation of CHP units and the reconstruction of heating systems). The PHARE program could save 120-138 ktoe by 2016. The Environment and Energy Operational Program (KEOP), which aims to reduce energy use in industrial buildings through subsidies for small and medium enterprises, could help save 163-189 ktoe by 2016.
Since 2008, large energy consumers in the industrial sector have been obliged to nominate an energy manager and to deliver an energy consumption report, followed by an energy savings plan and implementation report. These two measures are expected to save 69-129 ktoe by 2016. In 2008, voluntary agreements were launched in the energy-intensive sectors with the aim of reducing energy use, applying more efficient technologies, and developing products with higher energy efficiency indicators. Furthermore, a “Virtual Power Plant” program was launched in 2011 in order to reach the equivalent of 200 MW in energy savings (medium-sized power plant) by 2020.
In 2003, a feed-in tariff scheme for CHP installations was adopted, including industrial cogeneration facilities (not belonging to the district heating network) under 50 MW. Industrial companies that install CHP facilities or renewable systems can benefit from subsidies, as established in the Environment Protection and Infrastructure Operative Program (EIOP).
3.2. Energy consumption trends: falling energy consumption in industry
Industrial energy consumption fell by 56 percent between 1990 and 2011. It dropped by 33 percent between 1990 and 1992 and declined by 1.7 percent/year until 2008. After a 20 percent fall in 2009, industrial consumption recovered slightly but continues to follow its downward trend.
Figure 7: Trends in industrial energy consumption
0 1 2 3 4 5 6 7 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 M to e Source: Enerdata
The share of natural gas in the energy consumption of the industrial sector has decreased steadily since 1990 (49 percent) and now stands at 32 percent (2011). Electricity represents 33 percent of industrial energy consumption, up from 18 percent in 1990. The shares of biomass, heat and coal have increased over time, reaching 5 percent, 10 percent and 16 percent, respectively, in 2011. Oil represents just 5 percent, compared with 14 percent in 1990.
The share of energy-intensive industries (steel, chemical, paper and non-metallic minerals) in industrial energy consumption is stable at around 60 percent. In 2011, steel and chemicals accounted for 19 percent each. The energy consumption of the non-metallic minerals branch (mainly cement), which had been stable since 1992, fell dramatically in 2009, and now stands at 15 percent. The share of paper is low, at 5 percent.
Figure 8: Energy consumption of industry, by source 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1990 2000 2005 2011 Biomass Heat Electricity Gas Oil Coal/Lignite Source: Enerdata
Figure 9: Energy consumption of industry, by branch 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1990 2000 2005 2011 Other Paper
Non metallic minerals Chemical
Steel
3.3. Energy intensity trends: noticeable energy efficiency improvement
Between 1991 and 2010 industrial energy intensity decreased by 4.7 percent/year; the drop was slightly slower over the 2000-2010 period (-4.5 percent/year) but remained much faster than the EU average (1.7 percent/year). That improvement was due to efficiency gains in the chemical sector, the largest energy consuming branch (-5.3 percent/year), and to a significant fall in the specific energy consumption per ton of cement (-8.1 percent/year). Over the last decades, the cement industry has been intensively cooperating with other industries in terms of best available techniques and energy-efficient processes. In other energy-intensive industries, limited efficiency gains in the steel sector (-1.5 percent/year between 2000 and 2010) and a 1.3 percent/year increase in the unit consumption of paper have limited the effect of these energy efficiency improvements.
Figure 2: Trends in the energy intensity of industrial branches
-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 1991-2010 2000-2010 Total* Steel Chemical Cement Paper % /y ea r
*Including construction and mining
Source: Enerdata, Odyssee
The share of industrial CHP in Hungary’s electricity consumption is far below the EU average (around 4 percent in 2011 compared with 19 percent in the EU) and has been falling since 1997. Over the 1990-2011 period, power autoproduction in the industrial sector dropped at the same pace as energy consumption in industry (-55 percent).
Figure 3: Share of industrial CHP in industrial consumption
Between 2000 and 2010 the energy intensity of the manufacturing industry (ie excluding construction and mining) fell substantially, by 4.5 percent/year. About two thirds of this reduction was achieved through large efficiency gains in the industrial branches, as explained above. The rest is explained by changes in the structure of industrial value added: the share of the equipment sector, ie the branch with the lowest energy intensity, in the total value added of manufacturing, increased by more than 20 percentage points between 2000 and 2010.
Figure 42: Trends in the energy intensity of manufacturing and structural effect
-5.0% -4.5% -4.0% -3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 2000-2010 Real variation
