The role of biomass in domestic energy marketsUploaded: 1 of January, 2006

In our survey, we discuss the three most important Hungarian energy market segments from the viewpoint of biomass energy: district heating, electricity production and motor fuels. With regard to district heating and electricity, we study the issues of dependence upon natural gas, security of supply, regulatory and tariff setting mechanisms of natural gas and the system-related requirements towards biomass applications in both district heating and electricity systems. We discuss in detail the state regulatory aspects and market structure issues that are of influence to the energy use of biomass. Regarding biomass derived motor-fuels, we draw the conclusion that, under current regulation, chances are high for a heavily concentrated market with most profits at the legally guaranteed industry bottleneck. We provide some suggestions to avoid cementing an emerging market power issue.