Review of the Hungarian Energy Policy Between 1990 and Today

Abs ac —The change o egime in Hunga y be ween 1989 and 1990 was an economic and social ans o ma ion a he same ime. These p ocesses had an e ec on ene gy consump- ion and he eby on ene ge ics oo. The high ene gy needs o indus y dec eased and he s uc u e o indus y changed. Hun- ga y had o ace a one-sided and hea y ene gy-dependence om he So ie Union. Ine i ably, his made es ablishing uni- ied ene gy consump ion indispensable. In his a icle, I aim o examine wha economic and poli ical e en s ha e led o chang- es in ene gy policy and wi h all he changes wha majo p inci- ples ha e emained unchanged in he pas 25 yea s. Keywo ds—Ene gy policy, ene ge ics, enewable ene gy esou ces I. INTRODUCTION Be o e desc ibing he de ails o he ene gy policy in Hunga y, I would like o de ine he concep . Ene gy poli- cy is, in ac , he s a egy o ene gy supply. I includes imposing he o e all condi ions o ene gy supply and ene ge ics, p o iding long- e m ha mony be ween u u e ene gy needs, and accoun able ene gy esou ces, aking in o accoun economic boom as well as en o cing social in e es s. The ollowing ac o s a e o key-impo ance in ene gy-policy: consume p o ec ion, en i onmen p o ec- ion as well as complying wi h in e na ional obliga ions beside secu e ene gy supply and asks o legisla ion [1]. The main goal o ene gy policy is o en o ce p o ision o secu e ene gy supply o he popula ion and he economy, while keeping en i onmen pollu ion and se ice p ices a a socially accep able le el so as o mee he jus i ied ene gy needs o he coun y wi h cau ion [2]. The ene gy policy o a coun y and he equi emen s o ene gy supply a ising can be summa ized as ollows: The ene gy supply needs o be sa e, a ailable o e e yone, economically iable, socially accep able, and sui able o en i onmen p o ec ion. II. A REVIEW OF THE ENERGY STRATEGY OF HUNGARY Hunga y is a coun y poo in na u al esou ces so i hea ily elies on pe manen and sa e ene gy impo . This ac , basically de e mines now and in he u u e he op- po uni ies a ailable o he coun y and i s ene gy policy. The change o egime and i s concomi an economic ans o ma ion ine i ably had an impac on he ene gy sec o oo. The Laws o 1988 on economic co po a ions and he 1989 Laws o T ans o ma ion made i possible o new owne ship s uc u es o appea in he ene gy sec o . As a esul , he sys em o co po a ions o ene ge ics changed oo. Fo example, gas-supply companies le OKGT ( he Hunga ian Oil and Gas Indus y T us ) in 1990. In 1991 MOL Plc. ( he Hunga ian Oil and Gas Indus y Plc), and he Hunga ian Elec ici y Plc we e es ablished. A he same ime, laws ela ed o he ope a ion o Co po a e Sys em and o he ene gy indus y we e passed. Mining Law, Concession Law, Gas Law and Elec ici y Law we e all passed. To supe ise ma ke s egula ed by he laws, he Hunga ian O ice o Mining and he Hunga ian Ene gy O ice we e es ablished. The basic p inciples o he new na ional ene gy policy had been ou lined ea lie based on a documen submi ed o he Hunga ian Pa liamen in he egula ion o 21/1993. They a e as ollows [3]: 1) To keep and inc ease he secu i y o ene gy-supply. To dec ease one-sided impo dependence and lay down he igh economic-poli ical condi ions o di e si ied ene gy pu chase. 2) To enhance ene gy e iciency and ene gy sa ing, whe eby he compe i i eness o he ma ke inc eases. 3) To c ea e sui able economic and legal en i onmen so ha he Hunga ian ene gy economy can g adually be adap ed o he eme ging, uni ied Eu opean ene gy ma ke . 4) To en o ce he p inciple o he lowes cos in he de- elopmen and ope a ion o he ene gy sys em. 5) To en o ce en i onmen al aspec s in bo h he ene gy- p oducing and ene gy-consuming sys ems and in u- u e de elopmen s. 6) To no malize he si ua ion o coal-mining while p io i izing in e es s o he na ional economy. Mos o he p inciples and s a egic planning lis ed abo e ha e been implemen ed, while he es a e in p o- g ess. Laying down hese basic p inciples, howe e , was especially signi ican because hey ha e p o ided a deci- si e amewo k o implemen ing ou ene gy policy up o he p esen day. The Go e nmen was au ho ized by he Pa liamen in Regula ion 21/1993 [3] o submi a biannual epo o he Pa liamen on he ene gy-policy being implemen ed. The i s epo o his kind was p epa ed o he Pa liamen in 1995. In he e y same yea he Law o P i a iza ion and i s amendmen we e passed, which ac ually na owed REVIEW OF THE HUNGARIAN ENERGY POLICY BETWEEN 1990 AND TODAY Tünde JENEI Uni e si y o Deb ecen, Facul y o Enginee ing Deb ecen Hunga y jenei @eng.unideb.hu 1 ANNALS OF THE ORADEA UNIVERSITY Fascicle o Managemen and Technological Enginee ing ISSUE #1, MAY 2015, h p://www.im uo adea. o/auo. m e/ 71 down he possible a e o s a e p ope y in he ene ge ics- co po a ions. Du ing he i s phase o p i a iza ion o he elec ical-ene gy sec o HUF 180 billion p o i was ob ained ou o a o al o HUF 245 billion, mos o which was a esul o selling elec ici y se ice-p o ide s. The Hunga ian Elec ici y Wo ks made long- e m ag eemen s wi h powe s a ions o elec ici y pu chase con ac s. The nex accoun was comple ed a he end o 1997, which would ha e been submi ed o he Pa liamen a he beginning o 1998, had he e no been elec ions and a new go e nmen . A epo was submi ed on how he p inciples o ene gy policy we e obse ed in 1999, which was passed by he Go e nmen in a egula ion [4]. This epo con ained ele an in o ma ion abou changes in he ene gy sec o be ween 1995 and 1999, as well as analyses o e en s and o icial s andpoin s. A ew new p inciples o he ene gy policy de ailed in he p oposal we e also de ined: 1) To c ea e a home ma ke allowing o he compe i i eness o he economy as well as he na ional ea u es in o de o p o ec consume s’ in e es s, as pa o he uni ied Eu opean ma ke . 2) To emphasize he impo ance o sus ainable de elop- men . 3) I is o i al impo ance o egula e monopolies in a anspa en way. The in o ma ion bulle in published in 2001 ou lined ano he wo p inciples in addi ion o he ea lie basic p inciples: 1) Inc easing he a e o enewable ene gy esou ces in ene gy consump ion as well as, 2) P o ec ing he in e es s o ene gy consume s. The nex in o ma ion bulle in was made in 2005. The e we e basic changes aking place in he Hunga ian na ional economy and in he ene gy sec o o ming pa o i . The ene gy needs o he economy had la gely dec eased, he pollu ion o he en i onmen had d opped signi ican ly, and he ene gy sec o had become basically p i a ized wi h he eme gence o mul iple owne ship, and he condi ions o a compe i i e ma ke had been laid down bo h in he ield o oil de i a i es and pipeline ene gy esou ces. Simul aneously, he impo - dependence o he coun y had inc eased and he high a e o ossil ene gy emained. A he same ime, he p ice o oil inc eased on he ene gy ma ke , ollowed by a ise in he p ice o na u al gas. The ac ha Hunga y joined he EU in 2004 also in ol ed changes in he egula o y laws o ene ge ics. The ac o s men ioned abo e made he de ini ion o ene gy policy, as pa o he economic policy indispensable. The ene gy policy o 2007-2020 was de e mined by he Pa liamen , which in ol es supply secu i y, compe i- i eness, sus ainabili y, and he o e all long- e m imple- men a ion o p ima y goals. A he same ime, goals o he ene gy policy a e laid down, such as mee ing he en- e gy needs o he popula ion in a secu e, economical way, allowing o aspec s o en i onmen p o ec ion, while ein o cing compe i i eness in he ene gy ma ke , as well as acili a ing he implemen a ion o communi y objec i es de ined wi hin he amewo k o he Eu opean Union. The egula ion passed on “ he Ene gy Policy o 2007- 2020” [5] can be ega ded as a “ ame-documen ”, a new concep o he ene gy policy eplacing he old 1993 Pa - liamen egula ion. The Pa liamen egis e ed he ollow- ing main goals in he dec ee o [5]. 1) The s a egic goal o he ene gy policy is o op imize supply secu i y, compe i i eness and sus ainabili y, while conside ing long- e m aspec s as he o e all e- aliza ion o p ima y goals. Ha mony needs o be achie ed be ween he Hunga ian ene gy policy and clima e policy wi hin he ene gy policy. 2) When aking on in oducing measu es o dec ease g eenhouse gases, hei in luence on he ene gy sup- ply secu i y, he economy and compe i i eness o Hunga y also need o be accoun ed o . 3) Implemen ing he goals o ene gy policy, especially imp o ing ene gy e iciency and inc easing ene gy sa ing and encou aging he use o enewable ene gy esou ces and ene gy gained om was e, is o be en- cou aged by s a e subsidizing and sou ces made a ailable o Hunga y by he Eu opean Union. Special a en ion should be paid o en i onmen al e ec s, na u e conse a ion as well as e ec s ela ed o ood and odde p oduc ion, while encou aging he use o enewable ene gy esou ces. 4) To ensu e ha a egula o y en i onmen be o med and de eloped complying wi h he goals o ene gy policy and EU laws, one mee ing he igh condi ions o a compe i i e ma ke while allowing o consume p o ec ion, supply secu i y, echnical secu i y, en i onmen p o ec ion and na u e conse a ion as well as labou hygiene. In he e y same yea , he go e nmen passed he “Na- ional Ene gy E iciency Ac ion Plan” [6], he “S a egy o Renewable Ene gy Resou ces” [7] concep oo. In- c easing he a e o enewable ene gy esou ces bo h de- c eases he impo dependence o Hunga y and con ib- u es o laying down condi ions o sus ainable de elop- men , and o implemen ing goals o en i onmen p o ec- ion, na u e conse a ion and clima e p o ec ion [7]. The main goal o ene gy policy is o inc ease he a e o e- newable ene gy use acili a ing he compe i i eness o he economy in acco dance wi h he cu en inancial load-bea ing capaci y o he coun y and egion. I is p ima ily u ilizing biomass, wind ene gy, geo he mal ene gy and sola ene gy o he enewable ene gy esou ces ha o e excellen oppo uni ies allowing o he po en ials o Hunga y. The e a e signi ican po en ials in he use o biomass, bu planning and implemen a ion mus la gely allow o all he majo aspec s o en i onmen al p o ec ion and sus ainabili y. Special a en ion mus be paid o he use o biomass de i ed om ield and o es managemen as hey migh allow o en i onmen p o ec ion, na u e conse a ion aspec s o sus ainabili y o be conside ed. 1 ANNALS OF THE ORADEA UNIVERSITY Fascicle o Managemen and Technological Enginee ing ISSUE #1, MAY 2015, h p://www.im uo adea. o/auo. m e/ 72 When planning he use o enewable ene gy esou ces he ollowing ac o s need o be allowed o : 1) The use o enewable ene gy esou ces is gene ally mo e expensi e ha o ca bohyd a es. The di e ence is g adually dec easing, especially when accoun ing o cos s o clima e change, and p edic able wo ld ma ke p ice ise o oil and na u al gas. 2) Renewable ene gy esou ces imp o e he secu i y o ene gy supply by dec easing he a e o impo ene - gy, di e si ying sou ces o p ocu emen , inc easing he a e o ene gy coming om he coun y egions and c ea ing new jobs. 3) While using enewable ene gy esou ces no (e.g. wind ene gy) o only li le amoun o g eenhouse gases is eleased. Ene gy policy decisions ha e o be made by educing (in he Eu opean Union and in e na ionally) CO2 emis- sions and obse ing emissions o o he pollu an s. In he sense o he Kyo o p o ocol, he a e o g eenhouse gases has o be educed in Hunga y by 6 % on a e age in 2008- 2012 compa ed o he pe iod o 1985-87. Mid- e m e- duc ion o emissions in Hunga y la gely depends on load dis ibu ion ag eemen s in he Eu opean Union. Hunga y has o de ine wha ex en o emission educ- ion can be achie ed when accoun ing o he load- bea ing capaci y o socie y and he economy. Fa mo e adical in e na ional clima e p o ec ion equi emen s will ha e o be conside ed by 2030 han he cu en ones. To achie e goals o clima e p o ec ion bo h inc easing ene - gy e iciency and u ilizing enewable ene gy will gain g ound. The goals men ioned abo e had o be modi ied due o he wo ld c isis o 2008-2009 as well as he new Eu opean di ec i es. The ea lie s a egy had no ac ually accoun ed o he ene gy need educing e ec o he eco- nomic ecession o 2008-2009. Mos ecen ene gy need p edic ions o ecas signi ican ly lowe ene gy needs o 2020 han he goals o he ea lie s a egy. Conside ing changes in ene gy needs 2020 ene gy sa - ing expec a ions we e modi ied by he EU, hus making hem lowe han goals o he ea lie s a egy. The guiding p inciple 2009/28/EC o he Eu opean Pa liamen and Council [8] sugges s ha he goal enew- able ene gy alue wi hin he o e all p ima y ene gy se by 2020 be 20 %. The a e o bio uel wi hin all uels should each 10 %. This guiding p inciple aiming a a 20% enewable ene gy a e in ac allows o po en ials and special ea u es o he membe s a es espec i ely. This means, o example, ha Hunga y is expec ed o each 13% enewable ene gy use o he o e all ene gy consump ion by 2020. I is also p esc ibed by he guiding p inciple ha he membe s a es p epa e Na ional Renewable Ene gy Ac- ion Plan by he end o June o 2010, o be submi ed on a uni ied o m o he Eu opean Commi ee. The schedules o he Na ional Renewable Ene gy Ac ion Plan is o be based on he base yea o 2005. The goals o he Na ional Renewable Ene gy Ac ion Plan o ed by he Go e nmen in egula ion 1076/2010 a e as ollows: The Na ional Renewable Ene gy Ac ion Plan bases on he Renewable Ene gy S a egy o Hunga y al eady o ed by he go e nmen in egula ion 2148/2008 in 2008 [7]. Howe e , allowing o signi ican changes ha ha e aken place, he global economic ecession, he economic econs uc ion as well as economic de elopmen p og am de ined by he Hunga ian go e nmen , hey ew i e and o e w i e hem. As a esul , Hunga y does no only conside he use o enewable ene gy esou ces an obliga ion, bu much a he an excellen oppo uni y o con ibu e o economic de elopmen . In his espec , he use o enewable ene gy a esou ces is a need and oppo uni y a he same ime. Fi s , i is a undamen al need o ind an answe o p oblems caused by he excessi e use o ossil ene gy esou ces (such as clima ic change, impo dependence, imbalance o ade balance, sho age o ene gy e c.) which migh be ad an ageous bo h economically and in e ms o en i onmen p o ec ion o he coun y and ou socie y oo. On he o he hand, i o e s an oppo uni y o a s uc u al change in he na ional economy, o comp ehensi e p oduc ion and ma ke e o ms. Acco d- ingly, he goals o he Na ional Renewable Ene gy Ac ion Plan a e o be de e mined, encou aging small and medium-sized ene gy p oducing uni s ha ing a he la ge job-c ea ing capaci y, mo e adap able o local esou ces, o p oduce ene gy a he highes possible le el o e iciency and achie e long- e m sus ainable en i onmen use. Changes in ex e nal condi ions ( echnological de el- opmen , dec easing in es men cos s, di ec communi y esou ces e c.), e ision o he egula o y sys em and i s ine i able ans o ma ion, econside ing suppo sys ems, and simpli ying licensing p ocesses migh o e an oppo uni y o his. In ha mony wi h he ac o s abo e, measu es o he Na ional Renewable Ene gy Ac ion Plan conce n he ol- lowing public asks: 1) I is necessa y o pass a new law on sus ainable ene ge ics. 2) T ans o ming, simpli ying cu en suppo p og ams and making hem e icien . 3) Launching an independen (co- inanced by he EU) ene ge ics suppo p og am. 4) All- ound ans o ma ion o he compulso y sys em o aking o e elec ic ene gy p oduced om enewable ene gy esou ces (he eina e called g een ene gy). 5) Examining suppo ing al e na i es o ene gy p oduced om enewable ene gy esou ces. 6) P omo ing mo e ac i e pa icipa ion in di ec communi y and o he suppo p og ams. 7) Re ision o incen i es buil in o building ene ge ics. 8) Re ision o coun y planning and o ming egional ene ge ics concep s. 9) Re ision and simpli ica ion o egula o y, licensing sys ems and p ocedu es. 1 ANNALS OF THE ORADEA UNIVERSITY Fascicle o Managemen and Technological Enginee ing ISSUE #1, MAY 2015, h p://www.im uo adea. o/auo. m e/ 73 10) P og ams aimed a o ming iews, in o ma ion campaigns and elabo a ing (in eg a ed in o ma ion p og ams). 11) Launching de elopmen p og ams in o de o de el- op indus ies ela ed o enewable ene gy use. Launching p og ams aimed a dissemina ing second gene a ion bio and al e na i e uels. The main goal o he Na ional Renewable Ene gy Ac ion Plan is o p oduce he g ea es possible o e all social p o i based on he na u al, economic, social, cul u al and geopoli ical po en ials o Hunga y. The p ima y goal o u ilizing enewable and al e na i e ene gy is o dec ease he gas and oil impo -dependence o he coun y. III. CONCLUSION Impo has a high p opo ion in he ene gy supply o Hunga y. Local p oduc ion makes up one i h o oil needs, one six h o na u al gas consump ion and he cu - en ly a ailable and p edic able s ock da a make i e en mo e likely o his a e o dec ease. Inc easing wo ld ma ke ene gy p ices will con inue long e m. The wo ld ma ke p ices o ene gy, mainly oil and na u al gas has doubled in he pas one o wo yea s due o a g owing demand in quickly de eloping Asian coun ies, p oduc ion cos s and a ious poli ical e en s. Inc easing he secu i y o supply equi es signi ican in- es men s (new sou ces and ne wo k capaci ies and secu- i y s ocks), which inc ease he ene gy cos s o consume s u he . Fu he es ic ion o he clima e policy, en i onmen p o ec ion and na u e conse a ion may in luence he ope a ional amewo k o ene ge ics. En i onmen p o ec ion and dec easing pollu ion will become an ine i able cons ain in he nex qua e cen u- y. Decisions on ene ge ics will ha e o be made consid- e ing he ac ha egula ions o en i onmen p o ec ion, na u e conse a ion and clima e policy will become s ic e . Ene gy supply and ene gy use ha e signi ican en i onmen al e ec s, and a key issue o ene gy policy is o mode a e hese e ec s. Regula ions o En i onmen p o ec ion, na u e conse a ion and cli- ma e policy, limi alues and obse ing laws a e ex e nal consequences o ene gy policy. The Union p esc ibes goals in con ac s, guiding p in- ciples and egula ions so ha he goals accep ed be im- plemen ed. Execu ing he egula ions connec ed wi h ene ge ics is compulso y o membe s a es, so hey need o be in eg a ed in o goals o ene gy policy and means o execu ion. S a egic goals o compe i i eness, supply secu i y, and sus ainabili y a e i al, and wi hin hese egula ions ela ed o en i onmen p o ec ion, p omo ing ene gy secu i y and anspa en ma ke compe i ion a e o special impo ance. Hunga y has o ace he same challenges. I is a i al in e es o Hunga y ha he Eu opean Union can ind answe s o hese ques ions, ones ha a e a ou able o Hunga y oo. The o e whelming majo i y o asks con- olled by ene gy policy can be deduced om goals o supply secu i y, non-commi ed compe i i eness and en- i onmen p o ec ion (wi hin his clima e p o ec ion). O icial Hunga ian ene gy policy handles issues o ene - gy sa ing, inc easing he use o enewable ene gy and na u e conse a ion in an iden ical uni ied way. 70 % o ene gy esou ces a e impo ed in o Hunga y, and his a e is going o inc ease due o dwindling local esou ces. The mos impo an s a egic aim o he Hun- ga ian ene gy policy is o op imize supply secu i y, com- pe i i eness and sus ainabili y as an o e all se o goals. Se e al in e ac ions can be imagined be ween he h ee goals abo e, and, in many cases hei implemen a ion may con lic hose o he o he s, bu hey may also ein- o ce each o he . The measu es aken o achie e he goals equi e a special emphasis on common e ec s, o be able o esol e con adic ions be ween hem and c ea e he g ea es ha mony. REFERENCES [1] Gy. Sze dahelyi.(1998): Implemen a ion o he Hunga ian Ene gy Policy. In Hunga ian. (A Magya ene giapoli ika meg alósí ása); Ene gia ogyasz ók Lapja 1. szám pp: 3-4 [2] M. Já osi – A. Kacsó (2004): The Ene gy Policy o he Eu opean Union and Hunga y. In Hunga ian. (Az Eu ópai Unió és Magya - o szág ene giapoli ikája); Poli ika udományi Szemle 4. szám pp: 171-189 [3] 21/1993. (IV. 9.) Pa liamen a y Resolu ion. The Hunga ian Ene - gy Policy. In Hunga ian. (OGY. ha . A magya ene giapoli iká ól) [4] 2199/1999.(VII. 6.) Go e nmen Resolu ion, „Basics o he Hun- ga ian Ene gy Policy, he Business Model o Ene ge ics”. In Hun- ga ian. (Ko m. ha . „A magya ene giapoli ika alapjai, az ene ge- ika üzle i modellje”) [5] 40/2008.(IV. 7.) Pa liamen a y Resolu ion, Hunga ian Ene gy Policy 2007-2020. In Hunga ian. (OGY. ha . Magya Ene giapo- li ika 2007-2020) [6] 2019/2008 (II.23. ) Go e nmen Resolu ion, Na ional Ene gy E iciency Ac ion Plan. In Hunga ian. (Ko m. ha . Nemze i Ene - giaha ékonysági Cselek ési Te ) [7] 2148/2008.(X.31.) Go e nmen Resolu ion. S a egy o Renewa- ble Ene gy 2007-2020. In Hunga ian. (Ko m. ha . Megújuló Ene - gia S a égia 2007-2020) [8] Di ec i e 2009/28/EC on he p omo ion o he use o ene gy om enewable sou ces [9] 1076/2010.(III.31.) Go e nmen Resolu ion. Na ional Renewable Ene gy Ac ion Plan. In Hunga ian. (Ko m. ha . Nemze i Megújuló Ene gia Cselek ési Te ) 1 ANNALS OF THE ORADEA UNIVERSITY Fascicle o Managemen and Technological Enginee ing ISSUE #1, MAY 2015, h p://www.im uo adea. o/auo. m e/ 74