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In an earlier article we delt with the wind power production prospects in Hungary. We drew up in it, that Hungary’s negative judgement is well known in international investors` circles in respect of the installation of wind turbines and we laid down, that a radically new view is required that the Hungarian projects as well draw the attention of these investors because of the less advantageous technical conditions.
The Official Gazette published in the mean time the decree of the competent Minister of the „Tender process `conditions for the installation of wind turbines capacities, the minimal content elements and of the rules of the tendering process. (33/2009 (VI. 30. KHEM Decree) Upon studying it can be said, that we succeeded to frame again something special, a so called „Hungaricum”.
The „New Energy policy” chapter of the Government `s policy declares: The security of the energy supply is the primary interest of our country. In the interest of decreasing our import dependency we anew assess our domestic possibilities, we shall increase the number of supply sources, we shall accumulate reserves, and shall make use of new supply methods and chanels (….) Besides the traditional energy sources we shall increase the utilistaion of the renewable energy sources. (…..) In the interest of decreasing and diversifying the in comparison to the international ones high domestic specific energy utilistaion indexes, we shall attach importance to the support and incentive of project developments and investments utilizing renewable energy sources and taking into account energy efficiency.”
The quoted Government program designates the publication of the anexing detailed regulations as the main target of the program. Studying the Decree (33/2009 (VI. 30. KHEM Decree) we may declare, that it succeeded to make up a decree, where it depends on the „manual control” of the Hungarian Energy Agency, whether new wind turbines capacities shall be installed in Hungary in the forthcoming years. It is true however, that now a committee shall be formed (as well) carrying out the preparation of the tenders `qualification and evaluation.
The decree lays down, that „…. the aim of the new regulation is the encouragement the installation of new up to date wind turbines capacities in the interest of satisfying the user`s demands, the enforcement of the principles of the energy efficiency and energy economy in the interest of the sustainable development and the increase the proportion of the power to be produced from renewable energy sources …..”. However it undertakes everything to render more difficult or even to hinder the installation of new, modern wind turbines capacities.
The basic contradiction of the Decree whether new wind turbines can be built, depends on the yearly (!) extended range forecast of the Energy Agency while the project developers know, that the preparation of the installation of wind turbines and/or wind farms require at least 3-4 years.
Besides the basic contradiction the legislators tried to render encumber the participation on the tender procedure as well by drafting conditions such as the tenderers must
- annex the audited measured wind output data – without fixing who will be accepted as auditor, furthermore
- prove the availability of EUR 60.000/MW fund for each of the started MW of the tendered wind turbines capacity as a guarante for the installation in case the licence will be granted in the frame of the application process and to keep it up to the disclosure of the tender process results. (Remark: according to the Decree the evaluation and disclosure of the tendering process will take about 4 (!) months.)
The further rules of the Decree as well affect in the direction of preserving the actual situation as basically nothing motivates the Energy Agency of issuing tender invitations, furthermore the obligation of presenting EUR 60000/MW fund as a guarantee excludes for itself the participation of small and medium size entreprizes from the tender process as the deposition of a fund in this height is even for short terms impossible for them. The Global venture capital watch on the Hungarian projects only if the licence of the Hungarian Energy Agency, ie the Ready for Construction stage has been reached.
In Hungary 71 wind turbines with a total capacity of 127 MW was installed until end 2008. (The total capacity by 1Q 2009. with capacities under construction reaches 200 MW.) It is our view that based on the 33/2009 (VI. 30.) KHEM Decree it can not be expected that this capacity will significantly increase in the forthcoming years. Obviously it was not the aim of the legislators to support the installation of wind turbines, but they could not oppose the „New Energy policy” chapter of the Government `s policy. Ie. they created a Decree with the principal aim of supporting the installation of new modern wind turbines capacities.
July 2009.
Erik Groniewsky and Tünde Sarkadi
GESTCOM Bt
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