1. Market Situation in Hungary Market Situation in Hungary The Geothermal Heat Pumps market in Central & Eastern Europe BRATISLAVA 12.11.2007. Bela Adam Renewable energy expert, Chairman of the Hungarian Heat Pump Association

2. Set up of the Hungarian Heat Pump Association 20.06.2007.

3. The process of the geothermal heat pump systems in Hungary 2003 – first small and medium sized heat pump systems (20-50 units). – First regulations for closed-loop ground source heat pump systems. – Harkány Thermal Spa: installed capacity – 2,2 MW. 2004 – larger heat pump systems with 100-300 kW capacity (50-100 units) 2005 – family houses, industrial buildings up to 300-600 kW capacity (150 units) 2006 – Office/business buildings up to 800 kW capacity (200 units) 2007 – Pannon GSM Mobile Office Building 960 kW, 180 GHE Total installed capacity: ~ 10 – 15 MW (the calculation based on selling data because most of the heat pump systems have no license).

4. The distribution of the heat pump systems in Hungary Closed loop type: 60 % Open systems (groundwater): 25% Thermal water: 10 % Air-source heat pumps: 5% There is big possibility for the multistage utilisation of the thermal water in Hungary. The multistage utilization is supported by the Ground Heat Program (starting phase). Conception: to enhance the proportional rate of thermal energy from 3,6 PJ to 10 PJ by 2013.

5. ENERGY PRICES The implementing of the heat pump systems depends on the gas and electricity prices. – gas price: less than in the EU (price support) – electricity: at same level in the EU (no preferential tariff for heat pump systems)

6. hindering ‘activity’ of very strong natural gas lobby preferential electricity price is needed for heat pumps The equalisation of the Hungarian and the EU gas-prices will increase the spreading of the heat pump systems in large scale CONCLUSIONS

9. Payback time of the additional investment Family house – 11 kW (not supported): 10 years – 11 kW (supported, 10%): 8 years Industrial building – 200 - 900 kW (not supported): 8 years – 200 – 900 kW (supported, 25-40%): 6 - 4 years

10. Very large European BHE plants, status end of 2006 (Eugster & Sanner, 2007)

11. Páty, Verdung - warehouse Heating capacity: 610 kW Cooling capacity: 610 kW Number of BHE: 120 vertical loops Total BHE length: 12.000 m Type of BHE: single ‘U’ tube, each 100 m deep

12. HEATING CONTROL ROOM

13. PANNON PROJECT Start: 20th October, Under construction Heating capacity: 860 Kw, cooling capacity: 960 kW Number of BHE: 180 vertical loops Type of BHE: single ‘U’ tube, each 100 m deep Total BHE length: 18.000 m

14. DRILLING FOR BHE

15. Objectives and aims of the Hungarian Heat Pump Association provide technical and economic advice Lobby, preferential tariff for heat pumps quality control to coordinate the eco-labelling to process the heat pump technology education, courses action plan for Hungarian heat pump market

16. THANK YOU FOR YOUR ATTENTION! 1141 Budapest, Zsigárd u.21. Tel:+36(1)221-1458; Fax:+36(1)422-0004 www.hgd.hu www.hgd.hu info@hgd.hu