Solar Energy Market in Hungary. What are expectations for 2015?
/27th November 2014, RENEWABLE MARKET WATCHTM/ Solar energy potential of Hungary is good because the number of sunny hours in Hungary is between 1,950-2,150 hours per year at an intensity of 1,200 kWh/m2 per year. However, the Hungarian photovoltaic market is not developed. At the end of 2013, the solar PV market in Hungary has 22 MW cumulative installed capacity.
Hungary has good potential for using solar energy, as the number of sunny hours in Hungary is between 1,950-2,150 per year at an intensity of 1,200 kWh/m2 per year. However, the Hungarian photovoltaic market is not developed. At the end of 2013, the solar PV market in Hungary has 22 MW cumulative installed capacity. The main reason behind the slow market expansion is the low and non-functional feed-in tariff: there is a mandatory buy-back of the solar electricity, but the feed-in tariff is only approximately € 0.11/kWh, and time of payback is not guaranteed. Therefore it's not a classic FiT, and also not moving the market. There is a plan to introduce a "classic" feed-in tariff in Hungary for years, however in early 2013 was again postponed, and it can’t be expected before the end of 2014.
The National Energy Strategy by 2030 of Hungary (adopted on February 2012) aims to ensure a reliale, efficient and environmentally friendly energy supply. The main objectives are implementing an energy efficiency policy, especially in the power sector and in buildings, and the restructuring of the energy supply (increased use of renewables and domestic fuel resources). The energy strategy also focuses on "zero-carbon" transport, energy efficiency in industry and in district heating and educational programmes. Investments in renewable energy are supported through grants from the Environmental Protection and Infrastructure Operative Program (EIOP). As planned in the National Energy Conservation Program 2008 (NEP 2008), investments in facilities producing electricity from renewables are eligible for subsidies covering 25% of the investment.
By the end of 2014 and middle of 2015, no major expansion is expected in Hungary according to the research department of Renewable Market Watch for two reasons: one is the above delay of the FiT, and the other that today's commercial solar PV market in Hungary is largely based on EU subsidy programs. The latest subsidy program was several times delayed and just recently opened, and because of the long administrative lead times, most of these projects will come online only in 2015. Research analysts of the company also predict that residential PV market will remain at low volume, only supported by the net-metering system on a yearly based clearance, which became interesting recently, as module prices dropped to that level where LCOE costs became comparable to the residential electricity prices.
More information about current development and future trends of Hungarian photovoltaic (solar PV) market you may read here: Hungary Photovoltaic (Solar PV) Market Outlook 2015 - 2025
