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We have known for a long time that the Carpathian Basin, the former location of the Pannonian Sea, is an exceptional location for geothermal energy, energy lawyer Máté Tóth told Economx. According to the expert, the ground temperature in Hungary rises much faster than elsewhere, the heat flow is strong and the thickness of the earth’s crust is about half the continent’s average, therefore it is easy to reach.
Although there is still huge untapped potential in the direct use of geothermal energy, Hungary is currently, and has been for many years, one of the leaders in Europe. So much so that the country is consistently among the top five European countries in terms of utilization, with 6.4 petajoules of domestic energy use.
Additionally, since 2010, geothermal thermal energy production has quadrupled.
However, there has been no big leap in terms of overall potential. “It has been known for a long time that the Carpathian Basin, the former location of the Pannonian Sea, is an exceptional potential for geothermal energy,” stressed Máté Tóth, who then listed the advantages:
As hydrogeologist and university professor Judit Mádlné Szőnyi told Index earlier, geothermal heat is a suitable alternative to gas in Hungary. The country’s geothermal heat flux, or in simple terms the intensity of the heat emanating from the Earth’s interior, is outstanding in Europe. According to Gábor Simon, energy expert at DLA Piper,
at least an order of magnitude more geothermal energy could be utilized in an economically viable and sustainable way than is currently possible.
However, Simon noted that this is limited by the fact that a significant proportion of geothermal investments still require a large capital investment. On the other hand, recent changes in legislation have not yet succeeded in boosting geothermal investment and there are uncertainties about the rules for permitting projects. Moreover, the potential for exploitation is limited by technological, economic, environmental (sustainability) and sometimes social considerations.
Greater public involvement is the key to the recovery of the geothermal industry, as the market alone cannot manage such risks and costs at the scale and pace required.
This is why the current concept is that the state will also play a greater role in supporting geothermal energy research and exploitation. “The state should drill and participate in such projects, while bearing some of the cost and risk,” emphasized Máté Tóth, adding that the latter would be supported by a HUF 34 billion (EUR 86 million) tender fund, and an industry-targeted credit line called the Geothermal Investment Loan Facility would also become available.
As for drilling, the national geothermal exploration program is continuing. This is funded by public money, while a tender as part of the existing Climate and Environmental Protection Action Plan has already contributed HUF 4.8 billion (EUR 12 million) to mitigate the financial (market) risks of geothermal drilling.
On the public institution side, there will be an initial allocation of HUF 20 billion (EUR 50.6 million) for heating of settlements, and a geothermal heat pump installation program will also be launched. This pace should be stepped up in the near future, Máte Tóth underlined. Overall, the expert foresees a predictable funding environment from the budget planning side,
with a total of some HUF 165 billion (EUR 418 million) in support, which is needed to move forward.
Via Economx, Index; Featured image via Facebook/Energiaügyi Minisztérium