Argus Media
Summary
Hungary should implement a programme to encourage the efficient green transition of the country's district heating sector, which still relies on gas, Hungarian district heating association Mataszsz president Tibor Orban told Argus.
Gas demand in the country's district heating sector could fall gradually to less than 500mn m³/yr by 2030-35 from around 1bn m³/yr at present, Orban said. This would reduce Hungary's dependence on gas — something that decision-makers may want to consider when planning gas imports, Orban said. District heating accounted for 12pc of Hungary's 8.5bn m³ of gas demand last year.
Gas has a 75pc share in the sector's fuel mix, but it would be possible to add 550MW of carbon-free heat capacity and 11 PJ/yr of carbon-free output by 2030-35, Orban said. Mataszsz previously projected that biomass and geothermal energy could more than double their shares in the fuel mix to 27pc and 26pc, respectively, by 2030.
A programme to encourage the green transition and cost-efficiency of the district heating sector should be based on integrated development plans to be drawn up for individual heating systems, Orban said. Projects leading to lower heat consumption should be standardised under existing rules on energy-efficiency obligations, and pricing regulations should be updated to create adequate investor security and predictability for heat producers replacing gas, he said.
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