Examination of The Main Characteristics of The Electricity Market in Hungary

Abs ac —Ene gy e iciency measu es and inc easing use o enewable ene gy can con ibu e o he sus ainable de elopmen a global le el, o inc ease o he ene gy sa ing in any economy, and o dec ease o ene gy dependence a global and mac o le el. In his pape we aim o in es iga e he amoun o elec ici y p oduced and he de elopmen o p ice o elec ici y sold and pu chased by he di e en ac o s in he Hunga ian elec ici y ma ke be ween 2008 and 2013. Mo eo e we analyse he a e o enewable ene gy sou ces in he p oduc ion o elec ici y, look o he answe o he ques ion whe he he a e o enewable ene gy sou ces in elec ici y p oduc ion inc eased o dec eased in Hunga y. Keywo ds—sou ces o elec ici y p oduc ion, supply o elec ici y, p ice o elec ici y I. INTRODUCTION USTAINABLE de elopmen p esen s a signi ican challenge o he economic playe s. The s a e can ha e an impac on in es men s in enewable ene gy sou ces and on inc easing ene gy e iciency o enhance he use o enewable ene gy sou ces. The inc ease o he a e o he enewable ene gy consump ion in he g oss inal ene gy consump ion can be conduci e o he educ ion o he ca bon-dioxide emission and ene gy dependence. In any economy he elec ici y consump ion is a de e mining ac o in he s uc u e o demand o ene gy. The sha e o enewable ene gy in g oss inal ene gy consump ion inc eased in Hunga y be ween 2004 and 2011, bo h he measu e and endency o he change is simila o he EU 27 a e age [1]. A epo o he Eu opean Commission Join Resea ch Cen e shows ha he economic and inancial c isis impac ed he ene gy e iciency and he global in es men in enewable ene gies in la e 2008 and ea ly 2009, and signs o a s ong eco e y appea ed in he second qua e o 2009 [2]. The Di ec i e on Elec ici y P oduc ion om Renewable Ene gy Sou ces (2001/77/EC, RES [3]) b ough ou a ge s o he p omo ion o elec ici y om enewable ene gy sou ces in membe s a es. The e iciency o he egula ion was analysed in a numbe o publica ions, e.g. in [4] and i was shown ha he legisla i e p ocess esul ed in con usion on bo h he na u e and he subjec o he RES a ge s ha a e being aimed o . In his pape we aim o examine he main cha ac e is ics o he elec ici y ma ke by placing emphasis on he supply o elec ici y. The amoun o elec ici y p oduced and change in he p ice o elec ici y in Hunga y be ween 2008 and 2013 is also analyzed. Fu he mo e, he change o he elec ici y p oduced om enewable ene gy sou ces du ing he abo e men ioned pe iod is also in es iga ed. II. THE EXAMINATION OF THE AMOUNT OF THE ELECTRICITY PRODUCED The sou ce o he analyzed da a is he da abase o he Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y [5]. The amoun o elec ici y p oduced by powe plan s dec eased by 25.8 pe cen in Hunga y be ween 2008 and 2013 (Fig.1.). The use o he enewable ene gy o p oducing elec ici y signi ican ly dec eased (by 56.5 pe cen ). Fig. 1. The amoun o he elec ici y p oduced in Hunga y be ween 2008 and 2013. Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. EXAMINATION OF THE MAIN CHARACTERISTICS OF THE ELECTRICITY MARKET IN HUNGARY Im e KOCSIS1, Judi T. KISS2, A ila VÁMOSI3 1Uni e si y o Deb ecen Facul y o Enginee ing, [email p o ec ed].hu 2 Uni e si y o Deb ecen Facul y o Enginee ing, [email p o ec ed].hu 3 Uni e si y o Deb ecen Facul y o Enginee ing, [email p o ec ed] S ANNALS OF THE ORADEA UNIVERSITY Fascicle o Managemen and Technological Enginee ing ISSUE #1, MAY 2014, h p://www.im uo adea. o/auo. m e/ 183 The a e o enewable ene gy sou ces in he o al elec ici y ene gy p oduc ion was 12.9 pe cen in 2008, howe e his p opo ion dec eased by 5.3 pe cen age poin s by he end o he in es iga ed pe iod (Fig. 2.). The Hunga ian go e nmen expendi u e on en i onmen al p o ec ion was 0.7 pe cen o he GDP in 2012 [6]. In Hunga y, he sha e o elec ici y om enewables as a pe cen age o o al elec ici y consump ion was he hi d lowes alue (6.4%) among Eu opean Union (EU) coun ies in 2011 [7]. Fig. 2. The sha e o was e and enewable ene gy sou ces in he elec ici y p oduced in Hunga y be ween 2008 and 2013. Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. Fig.3. The amoun o elec ici y pu chased in Hunga y be ween 2008 and 2013. Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. In any economy he inc ease o enewable ene gy consump ion can aid he dec ease o ene gy dependence and con ibu e o economic de elopmen . The EU Membe S a es ha e high bu a ying le els o ene gy dependence, which means ha hey a e ulne able o ene gy p ice changes o ene gy supply dis up ions [8]. In he de eloped coun ies was e neu aliza ion and managemen o indus ial and communal was e is essen ial om he poin o iew o en i onmen al p o ec ion and ene gy p oduc ion. In Hunga y he elec ici y gene a ed om was e was 0.5 pe cen in 2008 and i inc eased by 0.39 pe cen age poin s be ween 2008 and 2013. T ade s can pu chase elec ici y om di e en sou ces, namely: powe plan s; ansmission sys em ope a o (TSO); elec ici y ade s; he o ganized elec ici y ma ke ; impo . The a e o he elec ici y p oduced in powe plan s, and coming om elec ici y ade s and impo gi e he majo i y o elec ici y supply. The amoun o elec ici y p oduced in domes ic powe plan s plays only a small pa in he elec ici y ma ke . I was 36 pe cen in 2008 and dec eased by 24 pe cen age poin s. The elec ici y sold by elec ici y ade s ep esen s he highes alue in he wholesale and e ail elec ici y ma ke . Hunga y impo s elec ici y om Aus ia, Slo akia, Uk aine, Romania, Se bia, C oa ia, and Slo enia (Fig.4.). The sha e o impo ed elec ici y ene gy was 17 pe cen in he o al pu chased elec ici y in 2008, and i dec eased o 10 pe cen by 2013 (Fig. 3). Fig.4. The amoun o he Hunga ian elec ici y impo by expo e coun ies be ween 2008 and 2013 (MWh). Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. III. THE DEVELOPMENT OF THE AVERAGE PRICE OF ELECTRICITY IN THE RETAIL AND WHOLESALE ELECTRICITY MARKET The a e age pu chase p ice o elec ici y equals he a io o he alue and he quan i y o he o al elec ici y pu chased. The a e age p ices a he wholesale s and e aile s con ain he e ec o changes in he supply o he elec ici y (1). Elec ici y in Hunga y is pu chased in he la ges amoun and alue om he domes ic powe plan s, elec ici y ade s and impo ing coun ies (Fig. 3.). The p ices es ablished by he abo e men ioned h ee selle s ha e he la ges impac on he de elopmen o he a e age p ices in he wholesale and e ail ma ke (Fig. 5.). The a e age p ice o he elec ici y p oduced by he Hunga ian powe plan s was he lowes in 2008 and 2009 (Fig. 5.). Howe e , he p ices o e ed by he domes ic powe plan s inc eased du ing he in es iga ion pe iod. The a e o inc ease o he p ice was 15.3 pe cen be ween 2010 and 2013 (Fig. 5.). ANNALS OF THE ORADEA UNIVERSITY Fascicle o Managemen and Technological Enginee ing ISSUE #1, MAY 2014, h p://www.im uo adea. o/auo. m e/ 184 Al hough he e was an inc ease in he p ice o elec ici y p oduced by domes ic plan s, he a e age p ice o elec ici y sold by elec ici y ade s and coming om impo ell. This means ha he p ices paid o elec ici y impo was he lowes be ween 2010 and 2013. The a e age selling p ice o he elec ici y is equal o he a io o he alue and he quan i y o he o al elec ici y sold. The po en ial buye s o elec ici y in he wholesale and e ail elec ici y ma ke a e he ollowing (Fig. 6.): end use s; uni e sal se ice p o ide s; elec ici y ade s and impo ing coun ies. Fig.5. The a e age pu chase elec ici y p ices by selle s, be ween 2008 and 2013. Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. Fig.6. The a e age selling elec ici y p ices in he e ail and he wholesale ma ke , be ween 2008 and 2013. Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. The a e age p ices o he impo ed elec ici y exceeded he expo ed p ices in 2009, 2010 and 2013. The change in he a e age p ice o elec ici y shows ha he compe i ion in he ield e ail and wholesale elec ici y is ela i ely s ong. The a e age selling p ice o all po en ial pu chase s dec eased excep o he uni e sal se ice p o ide s (Fig. 6.). The di e ence be ween he a e age e-sales and pu chase p ices ep esen he a e age ma gin o he elec ici y wholesale s and e aile s. In Hunga y he abo e men ioned ma gin dec eased be ween 2008 and 2013 (Fig.7.,8.). The a e age sales p ice o he elec ici y was highe by 7.34 pe cen han he a e age pu chase p ice in 2008. Howe e , he ma gin dec eased by 2013, he a e age sales p ice was highe by 3.55 pe cen han he a e age pu chase p ice (Fig. 8.). This ep esen s a a e o decline o 3.84 pe cen age poin s. Fig.7. The changes in he a e age pu chase and selling p ices (F /kWh) o he elec ici y in Hunga y be ween 2008 and 2013. Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. Fig.8. The de elopmen o he a e age ma gin in Hunga y be ween 2008 and 2013. Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. IV. CHANGE OF THE AMOUNT AND PRICE OF ELECTRICITY SOLD TO USERS BY PROVIDERS OF UNIVERSAL SERVICE The p ice o elec ici y is an impo an pa ame e o he ene gy ma ke o a coun y. In he ollowing o he pape he p ice o he elec ici y sold o use s by uni e sal se ice p o ide s is in es iga ed, mo eo e he connec ion be ween amoun and p ice is also analysed. The amoun and he p ice o he elec ici y sold o use s by uni e sal se ice p o ide s in Hunga y can be seen in Fig.9. and Fig.10., in he pe iod be ween 2008 and 2013. The cha s in Fig. 9. and Fig.10. show an inc ease in amoun ( om 2008 o 2009) and in p ice ( om 2008 o 2010), espec i ely, howe e , he peak is ollowed by dec easing end o 2013. ANNALS OF THE ORADEA UNIVERSITY Fascicle o Managemen and Technological Enginee ing ISSUE #1, MAY 2014, h p://www.im uo adea. o/auo. m e/ 185 Fig. 9. Amoun o he elec ici y sold o use s by uni e sal se ice p o ide s in Hunga y 2008-2013 Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. Fig. 10. P ice o he elec ici y sold o use s by uni e sal se ice p o ide s in Hunga y 2008-2013 Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. Fig. 11. Change in he amoun and p ice o he elec ici y sold o use s by uni e sal se ice p o ide s in Hunga y 2008-2013 Sou ce: Hunga ian Ene gy and Public U ili y and Regula o y Au ho i y, 2014. Conside ing he change o he amoun and he p ice o elec ici y, a signi ican di e ence can be ealized. Fig.11. shows he change in he amoun and he p ice o elec ici y sold as a pe cen o he alue in 2008. The big change in he amoun om 2010 o 2011 was no ollowed by signi ican change in he p ice, mo eo e he p ice in 2012 was la ge by 1 pe cen han in 2008, while he amoun o ene gy sold o use s was smalle by 8 pe cen . CONCLUSION In his pape we examined he o al amoun o elec ici y p oduced and he sou ces o elec ici y supply in he ene gy ma ke in Hunga y be ween 2008 and 2013, u he mo e analysed he a e age p ice o elec ici y sold and pu chased as well. We ound ha he use o he enewable ene gy o p oducing elec ici y signi ican ly dec eased in Hunga y be ween 2008 and 2013, howe e , he elec ici y gene a ed om was e inc eased sligh ly (by 0.39 pe cen age poin s). The a e age selling p ice o all po en ial pu chase s dec eased excep o he uni e sal se ice p o ide s. The a e age p ice o elec ici y sold by ade s and coming om impo dec eased, while he e was an inc ease in he p ice o elec ici y p oduced by Hunga ian domes ic plan s. This means ha he p ices paid o elec ici y impo was he lowes be ween 2010 and 2013. Howe e , he a e age p ices o he expo ed elec ici y we e lowe han he impo ed p ices in 2009, 2010 and 2013. The change in he a e age p ice o elec ici y shows ha he compe i ion in he wholesale and e ail elec ici y ma ke is ela i ely s ong. ACKNOWLEDGMENT The publica ion is suppo ed by he TÁMOP-4.2.2.A- 11/1/KONV-2012-0041 p ojec . The p ojec is co- inanced by he Eu opean Union and he Eu opean Social Fund. REFERENCES [1] J. T. Kiss and I. Kocsis, “Renewable ene gy p oduc ion and consump ion in Hunga y”, In e na ional Re iew o Applied Sciences and Enginee ing, 4 (2013)2, 117-122. 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