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BBJ Energy Conference focuses on green energy, liberalization

The authorization and subsidizing of renewable energy projects, the next phase of energy market liberalization, and securing alternative sources for Hungary’s gas supply were the main topics of the BBJ’s energy conference on Tuesday.

Held in the Corinthia Grand Hotel Royal, the first session elaborated on the principles by which the Hungarian Energy Office (MEH) evaluates applications by investors to build wind turbines, and the problems related to the government’s current green energy subsidy scheme.

According to Endre Slenker, chief counselor at MEH, investors have so far signaled interest to build wind turbines with total capacity of above 1,000 megawatts, which would involve the construction of 70 turbines.

György Békés, deputy director at MEH, explained that under Hungary’s Electricity Law, which was last modified in 2005, state-owned electricity firm MVM Rt is obliged to buy green energy from producers for Ft 23 per KWh. This price, which is above the market prices, is adjusted with inflation every year.

As for the next phase of energy market opening, which is scheduled to take place as of next July, István Balázs, head of licensing at MEH, said an important task will be identifying those energy trading firms that currently are in a monopoly or near-monopoly position on the liberalized market.

 

 

For further details, see next week’s BBJ.