Regional responses to the Europe 2020 Strategy with particular focus on energy efficiency – Hungarian case

Energy efficiency - Europe 2020 Strategy Legal background – Hungary (I) National Energy Efficiency Action Plan (2006/32/EC Directive) Decrease energy demand by 1 % annually (1.773 GWh/year) through improving energy efficiency Tools: mainly infrastructural ivestments, paralelly with communication, awareness raising, and pilot projects Main areas of interest: buildings (both public and private sector), energy transformation, and transport Most important incentives: A) public sector: improving energy efficiency of buildings using industrial technologies ( , 1/4 of all housing), support schemes for buildings using traditional technologies, improving district heating, regional expert network, support energy efficient appliances, energy certificate of buildings, education/training

Legal background – Hungary (II) B) tercier sector: municipal trainings, ESCO, energy efficiency in regional operational programmes, third party financing, energy efficient procurement, energy efficient requirements of office appliances C) indutrial sector: financial credits, development of district heating, financial schemes of operational programmes, energy experts and report obligations by large scale energy consumers, development of electricity network D) transport sector: road fees for heavy vehicles, parking houses E) horizontal issues: public awareness National renewable energy action plan (2009/28/EC Directive) 13 % share of renewables (legally binding) National renewable energy action plan Regular reports to the Commission renewable target is 14,65 %

National Renewable Energy Action Plan – Hungary (I) Share of renewables: – Heating and cooling sector: 18,9 % – Electricity production: 19 % – Transport: 10 % Main measures to meet the objectives (4 pillars) I.pillar: support schemes, programmes – national support, EU co-financing, direct European financial sources, etc.) II.pillar: other (market, national budget) financial incentives – green economy development, R+D, transformation of green electricity delivery, allowances of biofuels, tariffs, tax issues, etc.

National Renewable Energy Action Plan – Hungary (II) III.pillar: general regulatory and programming environment – law on sustainable energy management, law on renewable energy, simplification of authorisation procedures, development of regional energy programmes, review of building energetic procedures, etc. IV.pillar: social incentives – employment, national and regional education and training, social awareness, energy expert network

Europe 2020 Strategy - Regional initiatives (I) Regional energy agency (ENEREA) Intelligent Energy Europe Programme (2007) ENEREA was established in 2009 Main objectives: -Improving energy efficiency -Promotion of reasonable energy use -Promotion of renewable energy agencies -Regional energy diversification Main activities: -Energy planning (analysis, reports, regional energy strategy) -Sectoral activities (workshops, info-days, promotional activities) -Horizontal activities (training programmes, assisstance, Energy café, project management) -Capacitiy building, national and international cooperations -Communication and dissemination

Europe 2020 Strategy - Regional initiatives (II ) Regional Energy Strategy: – Developed in 2010 – Considers National Energy Efficiency Action Plan – Built in performance of regional plants: Fossil energy: 95 MW (1 plant) Renewable energy: 25 MW (10 plants, mainly biogas) – Main energy consumers: public sector (50 % of regional consumption) – Main energy sources: natural gas (53 %), electricity (21) – Main take-off point: improvement of energy efficiency Public awareness Insulation of buildings (green certificate) Energy saving lighting – Potential of renewable energy sources: Solar power: both heating and electricity Biomass: local use Geothermal energy: heat pumps, heating

Europe 2020 Strategy - Hungarian National Reform Programme Increase the employment rate to 75 % in terms of population ,8 % of GDP should be invested in R+D Share of renewables should reach 14,65 %, energy savings should reach 10 %, a maximum of 10 % increase of greenhouse gas emmision outside of EU emission trade system Increase the share of population having completed tertiary education to 30,3 % in population aged Decrease poverty by 5 %

Financial instruments to support energy efficiency Environment and Energy Operational Programme: 4. priority: developments in the renewable energy sector 4.1 Power and/or heat generation: 9 projects, 4,125 million 4.2 Local heating and cooling: 112 projects, 10,35 million 4.3 Co-generation and biomethane: 26 projects, 10,66 million 5. priority: developments of energy efficiency 5.1 Improving energy efficiency: 3 projects, 0,632 million 5.2 Third party financing: 25 projects, 0,767 million 5.3 Building efficiency: 66 projects, 17,41 million 5.4 Development of district heating: 3 projects, 0,928 million

Thank you for your kind attention! András Ibrányi planning manager ÉARDA Nonprofit Ltd.