Publications / Hungarian Energy Market Report
REKK Hungarian Energy Market Report 2014 Q2Published: 1 of June, 2014
Impact of the possible embargo situation related to the ongoing Ukrainian crisis | Smart grids in Europe | The nightfall of the obligatory purchase regime

Table of contents

Impact of the possible embargo situation related to the ongoing Ukrainian crisis

Our article we take a close look at the security of supply risks generated by the recurring political crisis between the Ukraine and Russia. If the delivery of gas is suspended or a trade ban is imposed, the countries of Central and Eastern Europe will be deprived of substantial volumes of Russian natural gas import. Using modelling tools we assess the price increase that would be elicited by substituting the lost sources of the region, and we also inspect the level of consumption restrictions needed to offset the missing sources of import. In our analysis we examine the impacts of different scenarios of import loss with respect to their level, duration and timing.

Overcoming preliminary challenges to the shale gas in Europe

Our article we scrutinise the present situation and the expected future of European shale gas production. We briefly review the shale gas extraction related regulatory attitude of the European Commission and the EU member states, then using the examples of the UK and Poland we present the instruments with which countries planning to extract non-conventional sources try to facilitate the launch of production. Our American expert, Nolan Theisen presents the contrast between Europe and the United States quite conspicuously, outlining the conditions that the countries of the region ought to create so that the production of non-conventional supplies could start in large volumes.

Author: Nolan Theisen
Smart grid

The article reviews the progress achieved in the development of European smart grids, describes the – different – investment strategies of individual states and provides insight into some of the interesting nuances of cost-benefit analysis, especially the challenges of project financing and the factors driving returns. The article also covers the domestic situation, summarising the results of the most recent study laying the foundation for the cost-benefit analysis to be submitted to the Commission.

Author: Antal Hum
The nightfall of the obligatory purchase regime

Our article of our report we present the guidelines of the European Commission on the future judgment on state aid for environmental purposes. The rules set by the corresponding document essentially seal the fate of feed-in-tariffs (FIT), a long term favourite among policy solutions. In our analysis we provide a detailed description of the requirements that future renewable support schemes need to satisfy in order to avoid the legal disputes between EU organisations and the member states.