Publications / Hungarian Energy Market Report
REKK Hungarian Energy Market Report 2010 Q1Published: 1 of March, 2010
Is the current high level of domestic balancing energy prices fundamental? | Reflections on the allocation of the Hungarian cross-border capacities | Developments of natural gas consumption in Hungary | Forecasting energy consumption in Hungary to 2020

Table of contents

Is the current high level of domestic balancing energy prices fundamentally justifiable?

While last year the domestic and neighbouring electricity markets were characterised by a substantial decline in prices, the settlement price for positive balancing energy in Hungary grew by more than 50%. In our article we ponder if the current high level of Hungarian balancing energy prices is justifiable. In our analysis we put the development of domestic balancing energy prices into perspective by comparing them to Hungarian spot prices, the fuel cost of regulating power plants and balancing energy prices of other European countries.

Reflections on the allocation method of the Hungarian cross-border transport capacities

In our article we examine if the allocation system of cross-border transport capacities on the Hungarian side facilitates the maximum possible utilisation of the available physical infrastructure. We analyse the attributes of the annual and monthly cross-border capacity auctions, present the trends of auction revenues at MAVIR, and finally articulate specific recommendations to alter the allocation method with which the conditions of use of the international transport infrastructure could be substantially improved.

Recent developments of natural gas consumption in Hungary

In this article we describe the developments of natural gas consumption in Hungary between January 2008 and October 2009. Our analysis is mostly descriptive in its nature. We used publicly available data from Eurostat, the Hungarian Energy Office (MEH) and MAVIR in our calculations. Our goal was to better understand the structural characteristics of the decline in natural gas use last year.

Author: András Kiss
Forecast of energy consumption in Hungary up to the year 2020

Below we review the main results of our long term forecast for national energy use. Future energy consumption is an essential issue from the perspective of energy producing companies, but also with regard to the fulfilment of the EU commitments of Hungary. By 2020 Hungary has to supply 13% of its gross energy use from renewable sources, while also achieving a 20% reduction in energy use. These percentage targets imply that the measures necessary to attain these goals have to be tailored to the anticipated level of energy use of the country.