3.1.3

REPORT on the regional energy demand of Borsod-Abaúj-Zemplén County, Hungary

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Background and methodology Borsod-Abaúj-Zemplén County is one of the nine model regions chosen from eight countries in the framework of the Central European Transnational Program (CEP) of the European Union. A „Regional Energy Concept” is being prepared for the county as part of the CEP-REC 3SCE417P3 project, for which the preparation of an extensive database is necessary about: the regional energy demand and the renewable energy sources, the situation, size and regional distribution of its potential energy supplies, and the recommendable exploitation technologies, as well as about the regional circumstances and utilization possibilities of the energy transfer potential. According to the predefined schedule the primary task is to identify the energy utilization demand as the need of the energy consumers.

Northern Hungary Region Borsod-Abaúj-Zemplén County

Fig. 1 Middle & East European Fig. 2 Territorial Border of the 7 Regions Region and 19 Counties of Hungary source: KPMG source: KSH (Central Statistical Office)

The analysis has been carried out by a two directional method: partly top down for the country, for the Hungarian regions (7 NUTS II regions) and for the NUTS III regions (that is the 19 counties and Budapest) (see Figure 2.), as well as for the LAU 1 (NUTS IV) sub-regional districts necessary for the establishment of the latter, mid-term investments - there are recently 15 LAU 1 level sub regional districts1 in BAZ County (see Figure 3). As far as general data is concerned (see Table 1.), they are the richest on the county level and are provided by the official Hungarian database, the Központi Statisztikai Hivatal (KSH, Hungarian Central Statistical Office). For further more detailed analyses and special sub regional compilations it

1 There were 16 LAU1 level micro regions, they were ceased and a system similar to the former district („járás”) system was reintroduced in 2013 - now there are 15 sub-regional districts („járás”).

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was most expedient to use per settlement data of the region as a starting point (also taken from the database of KSH) and to build the surveys up in a bottom up manner until the required level (e.g. to settlements with their agglomeration or to sub-regional district levels). The situation is different concerning the demands of energy consumers. These statistics are prepared mainly on national (and to some limited extent on municipal level for electricity, natural gas and district heat consumption) – and on county level for certain energy related services – (see Table 2.) and are publicly available. The sources of these are the Hungarian Energy and Public Utility Regulatory Authority (Magyar Energetikai és Közmű-Szabályozási Hivatal - MEKH) and the Central Statistical Office (KSH). All more detailed, local level demand surveys, estimations and prognoses are carried out separately for each municipal and sectoral development plans (e.g. for regional, county, regional district or municipality level) on the basis of specified assignments by the concerned planning companies, or the MEKH itself. For the recent work, the data taken from numerous well known and accepted municipal and energy sector national, county and municipality level development documents substituted for the incomplete regional database of Hungary (see the list of references at the end of this report).

Fig. 3 Sub-regional districts and counties of Hungary

Source: KSH Territorial atlas – district system: sub-regional districts of Hungary 2013.01.01.

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List of sub-regional districts: (and the number of settlements) in BAZ County:

1. Cigánd (15) 2. Edelény (45) 3. Encs (29) 4. Gönc (32) 5. Kazincbarcika (22) 6. Mezőcsát (8) 7. Mezőkövesd (23) 8. Miskolc (39) 9. Ózd (17) 10. Putnok (26) 11. Sárospatak (16) 12. Sátoraljaújhely (21) 13. Szerencs (14) 14. Szikszó (24) 15. Tiszaújváros (16) 16. Tokaj (11)

Table 1 National, regional and county level comparison data (2012)

Name Hungary North BAZ Judicature Hun. County 31 Crime rate re 100 000 4 760 4 206 4 382 Area, Population residents 1 Area, km2 93 024 13 430 7 247 GDP, economic organisations, investments, R&D 2 Population, end of year, 9 908,8 1 189,4 682,4 32 GDP/capita, thousand Ft 2 771 1 648 1 672 in thousands 33 Registered enterprises 1 666 402 144 836 74 501 3 Population density cap./ km2 107 89 94 34 of which: companies 600 759 39 195 22 655 4 Expected life time at birth: 35 Registered enterprises per 168 122 109 5 male 71,45 69,68 68,95 thousand residents 5 female 78,38 77,25 76,76 36 Enterprises with foreign 29 879 744 383 7 Rate of dependants, % owner interests 8 infant population 21,1 22,5 23,4 37 Foreign investments, million 17 988 489 502 809 209 965 9 elderly population 25,1 25,6 24,4 Ft 10 dependant population SUM 46,2 48,1 47,8 38 Investments of economic 3 817 557 287 074 172 281 Economic activity, employment, salaries organisations , million Ft 11 Employed, in thousands 3 877,9 386,5 216,0 39 R&D expenditure, million Ft 363 683 12 606 8 147 12 Unemployed, in thousands 475,6 76,7 45,2 40 R&D expenditure re GDP % 1,22 0,59 0,63 13 Inactive population, in 3 303,2 429,7 247,2 Agriculture thousands 41 Land, May 31,thousand ha 9 303,4 1 315,1 681,0 14 Activity rate, % 56,9 51,9 51,4 42 of which arable land 4.323,6 460,0 250,4 15 Employment rate, % 50,6 43,3 42,5 43 Animal stock,Dec1, thousand 16 Unemployment rate, % 10,9 16,6 17,3 cattle 753 62 38 Housing, utilities swine 2 956 134 87 17 Number of flats, end of year 4 402 008 508 975 284 351 Industry, Construction 18 Household natural gas 44 Industrial production, billion 23 141,0 2 918,7 1 972,0 consumers re stock flats, % 74,7 72,3 71,8 Ft 19 Flats connected to drinking 45 Industrial production per 2 332,7 2 442,1 2 332,7 water network, % 94,2 90,2 88,8 capita, thousand Ft 20 Flats connected to the 46 Construction output, million 1 097 520 95 851 60 975 sewage system, % 74,0 69,1 70,5 Ft Health care Retail trade, tourism, , hotel and catering trade 21 Residents per panel-doctors 1 545 1 575 1 558 47 Retail trade including 153 735 15 684 8 505 (incl. pediatricians) vehicles 22 Hospital beds 68 845 8 467 4 854 48 Retail trade turnover, billion 8 249,2 798,6 .. 23 Hospital beds re 10 000 69,5 71,2 71,1 Ft residents 49 Commercial accommodation 336 397 41 849 20 859 Pensions, social benefits capacity, July 31 24 People on pensions and 50 Number of catering sites 55 953 6 002 3 176 other benefits, thousands 2 869,0 353,7 196,7 Transport, Communication 25 Day nursery capacity 36 635 2 344 1 492 51 National roads, km 31 692 4 803 2 585 Education, culture 52 of which: motorways &semi- 1 304 146 71 26 Kindergarten capacity 377 154 46 102 25 871 motorways 27 Infants at kindergartens 340 204 41 131 24 369 53 Passenger car per 1000 301 255 239 28 Primary school pupils 742 931 97 538 58 427 capita 29 Secondary school students in 54 Telephone lines per 1000 295 267 260 full-time education 413 740 48 624 28 878 capita of which: in grammar school 189 526 19 892 11 508 55 Flats connected to cable TV 51,2 46,0 47,7 30 Bachelor and Master 399 636 25 661 11 643 network, % students in full-time Source: KSH Statistical Yearbook 2012, Table 2.4 education

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Table 2 Availability of public utilities in BAZ County between 2000 and 2012

2000 2009 2010 2011 2012 Power supply Low voltage network, km 5 326,4 4 960,9 4 991,1 5 006,2 4 896,3 Street lighting network, km 779,8 661,1 597,2 573,7 656,7 Number of power consumers 349 178 339 722 337 944 340 598 341 960 Of which: households 326 450 323 827 321 407 324 641 322 870 Power supplied, MWh 3 189 446 2 940 019 3 008 785 3 114 916 3 138 400 Of which: for households 588 747 620 048 612 704 592 773 581 086

Power consumption per household, kWh 1 855 1 920 1 899 1 835 1 795 Natural gas supply Settlements connected to the gas pipe network 282 302 302 302 302 Total natural gas pipes, km 5 608,0 5 932,8 5 943,1 5 947,7 5 956,3 Gas consumers 181 999 223 226 229 443 219 031 216 963 Of which: households 174 041 211 716 217 240 205 559 204 150 of which: heating consumers 133 707 172 030 177 347 165 642 164 096 Gas sold, thousand m3 387 733 483 519 435 446 385 992 697 428 Of which: for households 213 166 208 974 197 828 175 750 156 781 Natural (and other pipe) gas consumption per household, m3 1 244 1 000 922 831 765 District heating and hot water supply Settlement with district heating and/or district hot water supply 11 7 7 7 7 Flats connected to district heating 54 064 53 260 53 233 53 311 53 367 District heat supplied, GJ .. 2 222 014 2 278 149 2 222 901 2 028 124 Of which: for households .. 1 757 864 1 786 076 1 754 695 1 573 354 Flats connected to district hot water supply 48 934 48 042 47 945 47 965 48 100 District hot water supplied, thousand m3 .. 1 607 1 572 1 465 1 507 Of which: for households .. 1 558 1 536 1 428 1 471 Water supply Settlements connected to drinking water utility 354 358 358 358 358 Drinking water network, km 4 848,2 4 888,9 4 891,4 4 908,2 4 588,0 Flats connected to drinking water network 234 784 252 858 250 304 252 217 252 612 Water supplied, thousand m3 29 144 24 651 23 814 23 161 21 795 Of which: for households 18 238 17 656 16 838 16 625 16 431 Sewage system Settlements connected to sewage utility 51 229 230 233 238 Length of the sewage system, km 1 394,6 3 373,1 3 408,6 3 357,1 3 226,8 Flats connected to sewage system 115 755 189 118 189 037 190 544 200 404 Source: KSH Statistical Yearbook 2012, Table 5.3.5.

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Source: Administrative map of Hungary, Szarvas András Mapping Agency

Fig. 4 Detailed map of the region with cities, roads and topographic features

1.1 General description of the current situation of the region

Location of the county: Borsod-Abaúj-Zemplén County is situated in north-eastern Hungary south of Slovakia. It belongs to the Northern Hungary region and its centre is Miskolc. It is the second largest county in Hungary regarding both area and population.

Number of residents: Area size: 682 400 (180 000 in the county centre, the city of Miskolc) 7 247 km²

Economy During the former socialist regime, cities situated at Borsod-Abaúj-Zemplén County were important centres of heavy industry due to the richness in brown coal in the county. After the regime change in 1990 the industry faced a serious crisis, and Borsod-Abaúj-Zemplén is still among the counties that have the highest rate of unemployment (17,3% in 2012) and also the lowest rates of GDP per capita in Hungary. The lack of local jobs and the depressed economy lead to the increasing number of disadvantaged settlements.

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Character of the region Borsod-Abaúj-Zemplén County is geographically very diverse. It lies where the Northern Mountains meet the Great Hungarian Plain, thus the northern parts of the county are mountainous the southern parts are flat. The region has several high conservation value areas with two important national parks and three world heritage sites (two situated completely in the county and one partly). Bükk National Park is famous of its fossil remaining, arboretum, caves, and conservation visitor centres while Aggtelek National Park is part of the UNESCO World Heritage sites and take pride in stalactite caves of which the largest of Europe is situated in this area. The other two World Heritage sites are the Tokaj Wine Region Historic Cultural Landscape and Hortobágy which is Hungary’s largest protected area and the largest natural grassland in Europe. The county is one of the most forested areas in the country and it is also rich in water sources (surface water and karst). On the other hand traditional land use is disappearing and settlements face floods and droughts frequently.

Fig. 5: Population density, 2004 Fig. 6: Permanent migration, 2004

Source: Fig. 5, 6, 8: KSH – VÁTI Kht. Environmental Statistical Atlas of Hungary, 2005

Fig. 7: Preferential districts Fig. 8: Rate of protected natural areas with national and local importance, 2003 Source: Fig. 7 Borsod-Abaúj-Zemplén County Regional Development Concept, Analysis 2012

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According to Governmental Order 311/2007. (XI.17.) on the classification of beneficiary regions ten sub–regional districts of Borsod-Abaúj-Zemplén County (Abaúj-Hegyközi, Bodrogközi, Encsi, Edelényi, Mezőcsáti, Ózdi, Sárospataki, Szikszói, Szerencsi and Tokaji districts) are in the category of „most disadvantaged” and classified as beneficiary. There are three districts (the Kazincbarcikai, Mezőkövesdi and Sátoraljaújhelyi districts) in the disadvantaged category, rated beneficiary, while the Miskolci and Tiszaújvárosi districts have not been classified disadvantaged (see Figure 7). The weight of financial and social problems are well shown by the proportion of inhabitants in the disadvantaged districts within the county, which is over 50%, while the proportion of population in the most disadvantaged districts is close to 40%. A county that once had favourable economic and energy resource exploitation conditions and had been the home of several energy conversion plants, has sunk in a crisis that lead to high levels of unemployment, decreased income conditions and increasing social-economic- developmental differences. This is the main reason why BAZ County was chosen as „model region”, in the hope of attracting some attention and gaining special subsidies.

Fig. 9 Nature conservation areas with Fig. 10 Natura 2000 sites national importance, 2004

Fig. 11 Logging and rate of forest Fig. 12 Rate of forest cover by cover (2003) by counties sub-regions, 2003

Source: All 4 maps: KSH – VÁTI Kht. Environmental Statistical Atlas of Hungary, 2005

From an environmental point of view and from the perspective of sensitive areas (see Figure 8, 9 and 10), in order to boost economic growth and to improve the energy supply of

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inhabitants it could pose a further challenge and could serve as a good example to lay down a long-term energy concept that would favour up to date, low pollution, high efficiency technologies based on mainly local, renewable energy resource possibilities – that are recently still under utilised despite their favourable potential – and locally manufactured equipment instead of the polluting technologies of the once thriving heavy industry. The model region – on the initiative of foreign investors who came here during the privatisation process of governmental properties - seemed to serve as a good example for the domestic utilization of biomass from forestry mixed with traditional, locally produced coal types in electric power plants. They also received a feed in tariff subsidy for fossil based combined heat and power production and just caused medium air pollution. The distribution of biomass energy carriers on county level is shown by Figure 11, 12, and 14. The transformation of electric energy generated at low costs by biomass fuelled technologies has come to stagnation since the CHP subsidies were withdrawn in 2013. This coincidence is well utilizable if the biomass power plants can switch to wood-gasifying and other combined technologies of more favourable pollutant emissions in the future in the hope of some adequate operating support. The region is also characterized by the wet habitat along the Tisza River that is the southern border of the model region. It is necessary from both environmental and nature preservation points of view to clean the biomass waste and the invasive flora proliferation from the area and utilize it by biogas (fermentation) technology locally to provide heat for the municipalities centrally and individually (following the domestic examples and those from the neighbouring countries).

Fig. 13 The National Ecological Network Fig. 14 Rate of forests in the nature and the settlements of Sensitive conservation areas and the Natural Areas, 2003 forest reserves, 2003 Source: All 2 maps: KSH – VÁTI Kht. Environmental Statistical Atlas of Hungary, 2005

1.2 Demographic situation and development The population of the county decreased seriously in the last fourteen years. In 2012 it was only 90,5% compared to that of 2000 (see Table 3.). Proportionally to this decreased the number of live births (to 81%), the natural shrinkage of the population (to 2926 persons/year instead of the former 1800 persons/year) despite the fact that the domestic

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migration to the county increased. This is because the domestic migration from the county has increased even more, and therefore the domestic migration balance is still negative (- 3417 persons in 2012).

Table 3 Population and migration

2000 2009 2010 2011 2012 Population and migration Inhabitants –end of year 753 497 692 771 684 793 688 922 682 350 Marriages 3 306 2 251 2 221 2 087 2 186 Divorces 1 570 1 721 1 762 1 687 1 512 Live births 8 209 7 142 6 686 6 551 6 699 Deaths 10 015 9 682 9 877 9 518 9 625 of which: died under the age of one 79 64 43 58 49 Natural reproduction -1 806 -2 540 -3 191 -2 967 -2 926 Domestic immigration 30 179 25 425 25 076 31 696 32 507 Domestic emigration 32 566 31 200 30 119 35 383 35 921 Domestic net migration -2 387 -5 775 -5 043 -3 687 -3 414 International net migration 251 -74 256 122 -232 Foreign citizens in the county – end of year 3 187 3 837 4 018 2 428 2 557 Migration re thousand inhabitants Marriages 4,4 3,2 3,2 3,1 3,2 Divorces 2,1 2,5 2,6 2,5 2,2 Live births 10,9 10,2 9,7 9,6 9,8 Deaths 13,3 13,9 14,3 14,0 14,0 of which: died under the age of one 9,6 9,0 6,4 8,9 7,3 Natural reproduction -2,4 -3,6 -4,6 -4,4 -4,3 Domestic net migration -3,2 -8,3 -7,3 -5,4 -5,0 Source: KSH Statistical Yearbook 2012, Table 4.1. Conducting more detailed analysis of the population changes on the level of regional districts (see Table 4.) negative tendencies were identified in all of the examined areas. The largest decrease in terms of inhabitants (10-15%) were shown in six sub-regional districts (Sátoraljaújhely, Tokaj, Ózd, Kazincbarcika, Sárospatak and Putnok), while the slightest decrease (3,3-4,5%) occurred in two districts (Encs and Tiszaújváros). Table 4 Population and migration data of sub-regional districts in BAZ County Population, migration, 2012 Source: KSH Statistical Yearbook 2012, Table 10.2. Average Domestic Population of Live Natural Domestic net Population, end of year population of Deaths net 60 year old and towns births reproduction migration settlements migration more re Sub-regional districts permanent change re residents –end Average of 2000–2012. re 1000 capita end of 2001, capita, end of year re 1000 residents of year, % residents % Cigándi 16 294 -7,7 3 037 1 086 11,4 16,6 -2,1 -4,1 -9,3 19,7 Edelényi 34 012 -7,1 14 258 756 12,7 14,3 2,6 -1,6 -7,1 19,8 Encsi 21 783 -3,3 6 500 751 12,9 14,6 -0,8 0,0 -2,4 17,4 Gönci 19 459 -8,3 5 294 608 10,6 14,7 1,6 -4,0 -9,1 20,6 Kazincbarcikai 65 823 -11,3 42 867 2 992 8,0 13,6 -6,6 -3,6 -7,6 21,6 Mezőcsáti 14 635 -6,9 6 036 1 829 11,3 13,0 -0,2 -2,4 -6,6 19,1 Mezőkövesdi 42 442 -8,6 20 512 1 845 8,6 16,4 -0,5 -7,8 -1,5 25,3 Miskolci 245 384 -8,4 188 100 6 292 9,2 13,5 -5,8 -3,3 -4,5 22,8 Ózdi 54 527 -11,5 37 640 3 207 11,9 15,9 -6,9 -3,3 -10,0 22,0 Putnoki 19 252 -10,0 6 810 740 10,5 15,5 -5,4 -3,5 -8,0 20,3 Sárospataki 25 057 -10,7 12 827 1 566 7,8 12,9 -9,4 -5,4 -8,5 22,3 Sátoraljaújhelyi 22 673 -15,5 16 376 1 080 9,0 13,9 -14,9 -5,0 -10,7 22,5 Szerencsi 38 259 -8,3 9 166 2 733 10,3 13,9 -9,0 -2,4 -7,1 21,0 Szikszói 17 566 -6,9 5 582 732 11,5 12,8 -4,0 -2,0 -3,9 19,1 Tiszaújvárosi 31 801 -4,5 16 654 1 988 9,8 10,4 -4,2 -1,2 -2,6 20,1 Tokaji 13 383 -11,9 4 524 1 217 6,8 17,7 1,3 -9,2 -2,2 24,0 Total 682 350 -8,9 396 183 1 906 9,8 14,0 -5,0 -3,5 -5,9 21,8

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Population distribution of the county between settlement types: • Cities with county rights (inhabitants on 01.01.2012.): Miskolc (166.823), 24,4% of the population of the county (682.350 persons). • Cities with over 10.000 inhabitants (inhabitants on 01.01.2012.): Ózd (33.750), (Kazincbarcika (28.664), Mezőkövesd (16.538), Tiszaújváros (16.557), Sátoraljaújhely (15.355), Sárospatak (12.590), Sajószentpéter (11.965), Edelény (10.019), in the 8 cities together 145.438 persons that is 21.,2% of the county’s population. • Cities with between 10.000 and 5.000 inhabitants (inhabitants on 01.01.2012.): Szerencs (9.100), Felsőzsolca (6.750), Putnok (6.634), Encs (6.201), Mezőcsát (5.891), Alsózsolca (5.937), Szikszó (5.348), Nyékládháza (5.001), in the 8 cities together 50.862 persons that is 7,4% of the county’s population. • Cities with less than 5.000 inhabitants (inhabitants on 01.01.2012.): Emőd (4.895), Tokaj (4.839), Szendrő (4.062), Mezőkeresztes (3.803), Borsodnádasd (3.007), Abaújszántó (3.088), Cigánd (2.682), Sajóbábony (2.782), Rudabánya (2.488), Gönc (1.951), Pálháza (1.000), in the 11 cities together 34.597 persons that is 5,1% of the county’s population. • In the 330 villages (of which 9 is large village) of the county lives 41,9% of the population of the county, that is 287 073 persons. 13,1% of the municipalities are in the regional district of Edelény (this is where the most, 47 municipalities are), but only 4,9% of the inhabitants of the county live here (33.795 persons), while in the regional district of Miskolc live 38,2% of the county’s population. The table below (Table 5.) shows for each regional district the number of settlements, the number of cities, and the number of settlements categorized according to their size in terms of population, the area of the regional district and the population density.

Table 5 Settlement structure of the sub-regional districts Source: KSH Stat. Yearbook 2012, Table 10.1 2013 January 1 Share of res. on of Number of settlements in each inhabitant interval Population Area, sett. with pop. District Settlement which Density, 500– 1000– 5000– 10 000 – km2 density over town: –499 50 000– fő/km2 999 4999 9999 49 999 120, %

Cigándi 15 1 6 3 6 – – – 390 41,8 – Edelényi 45 2 29 8 7 – 1 – 718 47,4 29,5 Encsi 29 1 20 2 6 1 – – 378 57,6 41,5 Gönci 32 2 19 7 6 – – – 550 35,4 – Kazincbarcikai 22 3 3 7 10 – 2 – 342 192,6 82,0 Mezőcsáti 8 1 1 1 5 1 – – 351 41,7 – Mezőkövesdi 23 2 6 5 11 – 1 – 724 58,6 39,2 Miskolci 39 6 5 4 27 2 – 1 973 252,2 87,8 Ózdi 17 2 4 5 7 – 1 – 386 141,4 70,0 Putnoki 26 1 14 9 2 1 – – 391 49,2 45,0 Sárospataki 16 1 4 7 4 – 1 – 478 52,5 – Sátoraljaújhelyi 21 2 15 4 1 – 1 – 321 70,5 76,0 Szerencsi 14 1 1 1 10 2 – – 432 88,5 24,0 Szikszói 24 1 16 4 3 1 – – 309 56,8 42,2 Tiszaújvárosi 16 1 5 4 6 – 1 – 249 127,8 63,5 Tokaji 11 1 3 4 4 – – – 256 52,3 33,8 Total 358 28 151 75 115 8 8 1 7 247 94,2 60,2

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1.2.3 Flats, households The increase in the number of flats has been below the national average in the past five years in the area. Significant growth can only be observed in the regional district of Encs, Tiszaújváros and Miskolc (see Table 2.) in comparison to that of the county and the national average. Table 6 Number of flats (based on the annual flat construction and cessation statistics, estimated based on the micro census of the year 1984 from /0 and based on the census from 1990).

Change District Number of flats (in absolute % numbers) 2005 2010 2010/2005 2010/2005 Miskolci 107 699 109 613 1 914 1,8 Edelényi 13 120 13 243 123 0,9 Encsi 8 544 8 827 238 3,3 Kazincbarcikai 24 237 24 514 277 1,1 Mezőkövesdi 19 032 19 190 158 0,8 Ózdi 28 379 28 387 8 0,0 Sárospataki 10 732 10 896 164 1,5 Sátoraljaújhelyi 9 895 9 998 103 1,0 Szerencsi 16 728 16 868 140 0,8 Szikszói 6 761 6 808 47 0,7 Tiszaújvárosi 12 693 13 008 315 2,5 Abaúj-Hegyközi 6 473 6 626 153 2,4 Bodrogközi 7 058 7 184 126 1,8 Mezőcsáti 6 074 6 103 29 0,5 Tokaji 6 022 6 071 49 0,8 Borsod-Abaúj-Zemplén County 283 447 287 336 3 889 1,4 Hungary 106 871 110 485 3 614 3,4 Source: KSH T-Star From the comparison of the regions of Hungary (see Table 7.) it can also be seen that the proportion of flats used by the owner is in Northern Hungary region (which includes BAZ County) the largest (around 96%) and only 4% of the flats are rented or used in any other way. The heating types of flats in the region largely vary. The share of individual conventional (coal, wood) room heating is the second highest in Hungary in this region with a value of 19%. Natural gas use both with central house boiler and individual room heater is also high (30% and 28%), just as in other regions. The share of district heating is the lowest among the regions with 11% of flats connected.

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Table 7 Data of flats in Hungarian regions (2011)

Northern Southern Central Central Western Southern Northern Great Great Total Hungary Transdanubia Transdanubia Transdanubia Hungary Plain Plain Distribution of households by right of use, % Owner 89,2 93,3 90,9 93,6 96,0 95,6 93,7 92,5 Rented 9,5 5,5 9,0 4,9 3,4 3,6 5,0 6,5 Other 1,3 1,2 0,1 1,5 0,5 0,9 1,3 1,1 Total 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 Distribution of flats by heating type, % No heating 0,1 0,0 0,0 0,0 0,0 0,0 0,1 0,0 District heating 22,2 31,5 12,0 18,8 11,2 11,9 12,7 18,0 With a boiler heating several flats of a house 5,8 1,7 11,5 3,0 1,0 0,9 1,1 3,8 With a central gas boiler heating one flat only 35,9 30,4 27,3 25,5 30,2 31,9 27,5 31,2 W a cent. non-gas boiler heating one flat only 3,0 13,4 15,0 9,0 8,8 7,7 9,1 7,9 Individual room heating with gas 26,3 10,5 20,6 18,9 27,9 33,5 33,7 25,6 Individual room heating with electricity 1,0 0,5 0,4 1,7 1,8 0,2 0,6 0,9 Individual room heating with coal, wood etc. 5,5 12,1 13,1 23,1 19,1 13,9 15,2 12,6 Total 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 Northern Southern Central Central Western Southern Northern Great Great Total Hungary Transdanubia Transdanubia Transdanubia Hungary Plain Plain Distribution of flats by number of rooms, % One space or “half” room 0,3 0,8 0,4 0,0 0,2 0,2 0,0 0,3 One room 13,3 7,5 8,3 4,5 5,0 4,5 6,4 8,3 One and half rooms 20,2 20,7 13,9 15,8 14,8 18,9 17,9 18,2 Two rooms 26,2 37,9 31,2 24,6 27,2 25,8 31,5 28,6 Two and half rooms 15,5 14,3 17,1 21,8 19,8 28,3 19,7 19,0 Three rooms or more 24,6 18,8 29,2 33,4 32,9 22,2 24,5 25,8 Total 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100,0 Quantitative and qualitative indicators of flats Average area, m2 71,8 75,2 84,0 83,2 85,3 83,4 83,7 79,1 No of rooms per 100 households 262,0 253,0 275,0 304,0 285,0 274,0 266,0 271,0 Dwellers per 100 rooms 93,8 103,0 103,0 88,6 96,0 99,7 92,7 96,0 With bathroom, % 98,2 98,2 98,2 95,0 92,4 94,0 96,0 96,4 With WC inside the flat, % 98,1 98,0 97,9 94,6 92,1 92,9 94,1 95,8 With running water, % 99,3 98,7 99,0 96,9 94,5 95,8 96,8 97,6 With gas supplied, % 93,5 91,8 96,5 90,0 96,1 92,2 98,3 94,1 Of which via pipelines 88,0 62,2 76,4 62,7 71,4 76,9 81,9 77,6 by bottles, containers 5,5 29,6 20,1 27,3 24,7 15,4 16,5 16,5 with sewage conducted away, % 99,7 99,1 99,2 97,8 95,0 96,6 97,9 98,2 Of which connected to the sewage system 84,8 84,5 82,7 70,1 76,0 64,5 59,1 75,8 local drainage 14,9 14,7 16,5 27,8 19,0 32,2 38,8 22,4 Telephone equipped, % 97,2 98,0 98,4 96,7 95,4 95,5 96,6 96,8 Source: KSH Statistical Yearbook 2012, Table 5.2.3. 2.3.1 The distribution of flats in BAZ County (counting about 284 thousands) on a regional district level (see Table 8.) shows significant differences concerning the state of development of the different areas. The average area of the flats, the number of obsolete, ceased flats and the number and proportion of newly built (between 2000 and 2012) flats compared to the number of existing flats (2,1-9,0%) is low even if compared with the national level.

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Table 8 Distribution of flats by the districts of BAZ County (2012)

Flats built

of which Ceased flats Flats built in No of flats, Residents per District total average area, per 100 built 2000–2012 re flat end of year per 100 flats 4 rooms built by built by natural 10 000 number m2 flats stock of 2012, % or more enterprise person residents share, % Cigándi 6 375 256 4 75,0 – 100,0 142,0 2 500 5,1 Edelényi 12 619 270 25 4,0 – 100,0 63,8 7 16 3,3 Encsi 7 625 286 – – – – – – – 9,0 Gönci 8 741 223 – – – – – – – 5,1 Kazincbarcikai 27 348 241 20 45,0 25,0 70,0 152,3 3 30 3,3 Mezőcsáti 5 823 251 1 – – 100,0 58,0 1 300 2,1 Mezőkövesdi 19 457 218 21 57,1 – 100,0 115,0 5 81 3,5 Miskolci 105 846 232 137 50,4 1,5 68,6 115,2 6 12 4,9 Ózdi 22 222 245 1 100,0 – 100,0 135,0 0 – 2,0 Putnoki 7 637 252 2 50,0 – 100,0 125,0 1 100 2,4 Sárospataki 10 420 240 11 9,1 36,4 63,6 115,9 4 45 5,3 Sátoraljaújhelyi 10 130 224 15 60,0 – 100,0 165,6 7 – 4,8 Szerencsi 14 727 260 1 – – 100,0 301,0 0 – 3,4 Szikszói 6 355 276 3 – – 66,7 52,7 2 100 4,9 Tiszaújvárosi 13 025 244 35 45,7 57,1 42,9 92,3 11 6 6,1 Tokaji 6 001 223 6 50,0 – 100,0 104,3 4 83 3,7 Total 284 351 240 282 44,3 11,0 73,8 113,2 4 30 4,3 Source: KSH Statistical Yearbook 2012, Table 10.4. 2.3.2 According to the public utility related data of the flats on regional district level (see Table 9.) a significant segment (71,8% on the average) of them is connected to the piped gas supply system, however it may differ from one regional district to another (42,5-85,7%). 17,5% of the flats are connected to the district heating system that had been formerly installed on 11 municipalities but recently only functions on 7 of them, namely on Tiszaújváros, Kazincbarcika, Miskolc, Ózd, Sárospatak, Putnok and Sátoraljaújhely. The summary of data related to public utilities in the county is shown in Table 2, which gathers the data of the last 10 years. The most spectacular result is the significant increase in the number of settlements and flats connected to the public sewage system. Table 9 Water, gas and electricity utility related data of househ. of the reg.districts, 2012 Utility supplies, 2012 Source: KSH Statistical Yearbook 2012, Table 10.5.

Piped gas Drinking water Annual consumption per Water Difference of shares of consuming Sewage network sewage pipe length per network- household consumption connection to drinking District households re 1000 m drinking water per resident, water and sewage number o flats, 3 pipe, m piped gas m network– percentage points % flats connected, % power, kWh m3 Cigándi 58,2 88,4 42,8 700 1 794 19,6 615 45,6 Edelényi 53,7 76,1 57,5 770 1 749 19,3 733 18,5 Encsi 48,2 74,8 42,8 895 2 130 16,7 564 32,1 Gönci 36,9 86,1 36,6 811 1 614 21,6 682 49,5 Kazincbarcikai 73,4 86,7 73,5 705 1 767 25,2 738 13,2 Mezőcsáti 59,9 85,2 61,5 849 1 897 17,4 821 23,6 Mezőkövesdi 83,8 94,8 62,1 758 2 191 23,6 709 32,7 Miskolci 85,7 94,1 88,0 763 1 762 27,3 804 6,1 Ózdi 64,2 81,4 48,6 622 1 674 19,0 369 32,7 Putnoki 50,9 71,9 43,7 781 1 777 18,2 523 28,2 Sárospataki 53,5 86,8 81,3 866 1 748 26,7 840 5,5 Sátoraljaújhelyi 40,5 92,3 83,0 896 1 919 25,9 798 9,3 Szerencsi 65,7 89,0 46,1 980 1 959 21,4 608 42,9 Szikszói 59,5 88,9 66,9 938 2 088 21,2 787 22,0 Tiszaújvárosi 84,7 87,6 66,3 660 1 359 27,4 445 21,2 Tokaji 63,7 88,2 71,3 829 1 973 21,6 1 027 17,0 Total 71,8 88,8 70,5 765 1 795 24,0 703 18,4

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1.3.1 Economic situation and trends The economic performance of Borsod-Abaúj-Zemplén County has grown until 2010 by 6,6% in real values compared to 2000 that is significantly below the 19% increase of the national GDP (see Table 10.). This way the share of Borsod-Abaúj-Zemplén County in the national economic performance has decreased from 4,71% to 4,23% that indicates the growing gaps within the country concerning economic performance.

Table 10/a Evolution of the Gross Domestic Product (GDP)

Annual GDP (million Ft) Share of GDP re Hungarian GDP (%) Change (%) 2000 2005 2010 2000 2005 2010 2010/2000 2001/2010 Borsod-Abaúj- 1 060 487 1 458 260 1 130 632 4,7 5,0 4,2 6,5 37,5 Zemplén County Hungary 22 494 303 29 376 039 26 747 662 100,0 100,0 100,0 18,9 30,6 Source: KSH T-Star The gross domestic product of the county had been growing faster than the national GDP until 2005 (37,5%), but then due to the economic crisis it fell back far more than the national trend. The gap between the GDP per capita of the county and the national average had decreased significantly (by 5% points) by 2005, then as the economic crisis began the difference started to increase again. Table 10/b Changes in the GDP per capita GDP per capita (Ft/capita) Change (Ft) 2000 2005 2010 2010-2000 2010-2005 Borsod-Abaúj-Zemplén County 1 407 421 2 009 234 1 651 057 243 636 -358 177 Hungary 2 205 259 2 915 576 2 678 591 473 331 -236 985 Source: KSH T-Star The outlined processes are well shown by the changes of GDP per capita (see Figure 15.), which was 63,8% of the national average in Borsod-Abaúj-Zemplén County in 2000. Then despite the temporary good value of 68,9% in 2005, until 2010 it fell back to 61,6%.

Fig. 15 GDP per capita in 2010 and its change between 2000 and 2010 Source: National Economic Planning Office - KSH

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The aforementioned numbers imply that the economy of Borsod-Abaúj-Zemplén County is more sensitive to the negative tendencies of economic processes in foreign countries and to the shrinkage of domestic consumption caused by the decreasing domestic incomes than the national GDP indicator. Looking at the generated personal and corporate incomes together it can be seen that the gross added value increased by 11,6% in the county between 2000 and 2009 (see Table 2.). This lies about 5% points behind the national average increase. A similar tendency can be observed here as seen for GDP: it is increasing until 2005, then continuously decreasing. On the regional district level it can be claimed that the share of the regional districts of Miskolc, Tiszaújváros and Kazincbarcika is outstanding in terms of gross added value. Despite its relatively large number of inhabitants the share of the regional district of Ózd is rather low in the gross added value of the county and the gross added value showed the largest decrease (33,6%) in this district since 2000. The largest increase was achieved by the regional districts of Mezőcsát, Tokaj, Sátoraljaújhely and Abaúj-hegyköz. In this increase the agricultural investments and those connected to the development of vineries probably played a big role. There also have been stagnating regional districts, like the regional district of Kazincbarcika, Tiszaújváros, Szerencs and Bodrogköz where the gross added value increased only very slightly. Table 11 Gross added value in the sub-regional districts Annual values ( 1000 Ft) Change (%) Shares District 2000 2005 2010 2010/2000 2010/2005 2010 Miskolci 143 831 041 210 215 688 217 132 041 48,9 3,3 44,0 Edelényi 4 723 899 6 015 417 7 901 482 67,3 31,4 1,6 Encsi 2 616 769 3 483 447 4 029 405 54,0 15,7 0,8 Kazincbarcikai 71 976 935 72 992 002 72 069 052 0,1 -1,3 14,6 Mezőkövesdi 11 752 770 16 770 115 21 745 052 85,0 29,7 4,4 Ózdi 19 464 821 13 763 778 12 925 212 -33,6 -6,1 2,6 Sárospataki 7 454 907 8 152 060 14 151 048 89,8 73,6 2,9 Sátoraljaújhelyi 11 228 077 32 836 841 26 488 135 135,9 -19,3 5,4 Szerencsi 10 599 764 10 505 401 10 559 489 -0,4 0,5 2,1 Szikszói 1 422 076 2 579 305 2 868 769 101,7 11,2 0,6 Tiszaújvárosi 91 103 612 94 657 060 89 213 674 -2,1 -5,8 18,1 Abaúj-Hegyközi 1 411 156 2 067 227 3 070 558 117,6 48,5 0,6 Bodrogközi 997 691 788 612 863 800 -13,4 9,5 0,2 Mezőcsáti 873 229 2 454 368 3 328 338 281,2 35,6 0,7 Tokaji 2 757 811 6 910 189 6 706 328 143,2 -3,0 1,4 B-A-Z County 384 214 558 484 191 599 493 052 383 28,3 1,8 100,0 Hungary 10566195038 13892474106 18692960089 76,9 34,6 Source: T Star, KSH The results of the gross added value analyses according to economic sectors (see Table 12.) show that the largest value (57,4%) was achieved by industrial production (chemical industry, metallurgy, machine industry and energy industry). This was followed by the share (13,0%) of the non-material sectors, the share of the agriculture, food industry (11,8%), and then trade (9,2%).

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Table 12 Added value of sectors (million HUF)

Sector 2010 2011 Change (%) Agriculture 11 525 15 203 3,3 Food processing 41 312 39 552 8,5 Chemical industry 66 996 61 998 13,3 Iron, steel and other metal 37 515 48 603 10,4 Manufacturing 68 649 82 494 17,7 Energy, Water, Waste management 60 146 46 554 10,0 Construction 26 501 26 804 5,8 Trade 39 720 42 926 9,2 Transport 20 075 21 749 4,7 Non material sectors 53 561 60 312 13,0 Other sectors 19 375 19 349 4,2 Sectors altogether 445 375 465 514 100,0 Source: BAZ County TOP 100 draft publication, KSH 1.3.2.1 Changes of the industry and trade sector The gross added value per person – which indicates the productivity of labour – of the county has increased by more than 30% between 2000 and 2005 that is 3,8% over the national average. However, due to the economic crisis until 2009 some 10% reduction occurred, and since then the situation has further deteriorated at a more significant pace than in other regions of the country. In the future it may be reasonable to expand the production activities which primarily serve the needs of domestic customers and therefore to some extent substitute for import (for example processing basic foods, local energy generation, etc.) As large investments decreased by foreign investors, greater governmental involvement started to take place in the field of investments serving decentralization. The investments of small and medium enterprises were also supported by the Government by exploiting subsidy resources from the EU. Therefore the number of economic actors and enterprises increased, thus recently the number of registered enterprises reached 74 501 and the number of functioning enterprises 31 539. The most up-to-date data are shown in Table 13. in detail with their distribution on a regional district level.

Table 13 Distribution of Enterprises in BAZ County Source: KSH Stat. Yearbook 2012, Table 10.8. Enterprises Number of registered enterprises Operating enterprises industry, agriculture services of which per 1000 of which per 1000 District construction total total companies inhabitants companies inhabitants sector 2012 2011 Cigándi 1 014 68 333 1 415 162 87 287 87 19 Edelényi 1 131 304 1 241 2 676 690 79 1 071 429 32 Encsi 1 319 171 790 2 280 401 105 597 240 28 Gönci 1 783 233 732 2 748 508 141 619 294 33 Kazincbarcikai 583 592 3 388 4 563 1 494 69 2 489 1 021 38 Mezőcsáti 591 131 523 1 245 276 85 434 145 31 Mezőkövesdi 2 122 639 2 697 5 458 1 025 129 2 031 664 48 Miskolci 3 432 3 451 22 983 29 866 12 430 122 15 469 8 784 62 Ózdi 769 414 2 194 3 377 1 031 62 1 641 613 31 Putnoki 501 119 650 1 270 320 66 487 215 26 Sárospataki 2 957 348 1 479 4 784 774 191 1 244 554 51 Sátoraljaújhelyi 1 136 230 1 523 2 889 722 127 1 157 474 51 Szerencsi 2 396 453 1 747 4 596 1 046 120 1 342 617 36 Szikszói 966 134 722 1 822 356 104 530 232 30 Tiszaújvárosi 748 425 2 079 3 252 1 015 102 1 487 730 47 Tokaji 1 261 210 789 2 260 405 169 654 277 49 Total 22 709 7 922 43 870 74 501 22 655 109 31 539 15 376 46

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Based on the summarization of domestic commercial data (see Table 14.) more than 8 500 shops are functioning, most of the in the regional district of Miskolc followed by the regional districts of Kazincbarcika, Ózd and Mezőkövesd. Table 14 Domestic trade establishments in regional districts of BAZ County, 2012 Domestic trade, 2012 Of which shops of paints, Retail and vehicle Retail and vehicle Wine sellers Food stores metal, do it Whole sale District vehicle shops Clothing electric home petrol showrooms shops per 10 000 Pharmacy of wine and yourself products trade stores altogether shops appliances shops stations and parts inhabitants producers supermarkets and construction shops materials Cigándi 116 68 7 3 – 2 – 71 3 2 – Edelényi 296 154 20 13 3 3 9 87 7 10 1 Encsi 220 85 17 16 2 2 6 101 4 5 1 Gönci 168 90 6 5 – 3 4 86 4 8 50 Kazincbarcikai 792 335 60 52 18 8 39 120 14 48 – Mezőcsáti 130 49 11 11 1 2 3 89 2 3 – Mezőkövesdi 593 209 52 48 8 10 35 140 10 20 29 Miskolci 3 488 1 031 381 250 69 46 270 142 63 311 15 Ózdi 657 248 47 41 19 7 36 120 9 33 – Putnoki 167 93 7 4 3 2 4 87 3 – 1 Sárospataki 335 106 37 16 2 6 15 134 6 29 52 Sátoraljaújhelyi 391 137 33 31 10 6 16 172 5 9 10 Szerencsi 443 158 43 29 8 7 20 116 8 31 70 Szikszói 149 66 17 8 2 3 3 85 4 6 3 Tiszaújvárosi 376 129 44 30 7 9 11 118 6 19 – Tokaji 184 82 9 13 2 3 4 137 3 15 107 Total 8 505 3 040 791 570 154 119 475 125 151 549 339 Source: KSH Statistical Yearbook 2012, Table 10.10. According to the evaluation of the distribution of enterprises based on the number of employees (see Table 15.) the proportion of small enterprises (10-49 employees) is smaller, while the proportion of micro enterprises is larger than the national average. Table 15 Number of registered enterprises and their distribution by (employment) size (2010) No of 0 1-9 10-19 20-49 50-249 250-499 over 500 Total employees No. of enterprises 18 562 53 951 880 471 210 28 14 74 116 B-A-Z share (%) excluding County enterprises with 0 97,11 1,58 0,85 0,38 0,05 0,03 employee No. of enterprises 470 100 1 136 181 21 307 11 130 4 886 483 397 1 644 484 Hungary share (%) excluding enterprises with 0 96,75 1081 0,96 0,43 0,04 0,03 employee Source: T-star, KSH

A few significant enterprises with outstanding added value in the county: Jabit Circuit Kft. Robert Bosch Povver Tool Kft. Unio-Coop Zrt. Borsodi Sörgyár Zrt. Robert Bosch Energy And Érv. Északmagyarországi Body Systems Kft. Regionális Vízmű Zrt Émász Csoport Borsodchem Zrt. Taghleef lndustries Kft. Acs Csoport Borsodi Sör Kereskedelmi Kft. Borsod Volán Zrt. Prec-Cast Öntödei Kft. Mifű Miskolci Fűtőerőmű Kft. Modine Hungária Kft. Tvk Nyrt. Continental Dohányipari Zrt. Johnson Electric Ózd Kft. Remy Automotive Szemerey Transpart Fuvarozási Zrt. Source: TOP 100, the most significant enterprises registered in Borsod-Abaúj-Zemplén County, 2010

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Legend

foreign capital ratio (%)

ratio of domestic capital (%)

number of enterprises per thousand residents

Figure 16 Number of enterprises per thousand residents and share of foreign capital in 2010 [1] Source: National Economic Planning Office - KSH

Agricultural properties, more detailed data and trends of branches, production and employment The area of BAZ County is 680 988 ha (in 2012), of which the largest proportion (529 425 ha) is arable land. The area of arable land increased slightly from 2000 to 2009 (609 015 ha), then after a rather significant decrease it began to increase again recently (see Table 16.). Proportionally to this, the area of uncultivated land also increased, which trend would be expedient to halt. Concerning the distribution of the county’s lands according to cultivation method, the largest area (319 401 ha) is occupied by agricultural lands (plough lands, domestic gardens, fruit plantations, grape yards and grass). The second largest area (207 493 ha) is occupied by forests, which have grown significantly between 2000 and 2009 (see Table 16). Their recent share of 30,19% in the county is well over the national average (20,56%). Table 16 Land use according to cultivation method Land use according to cultivation method, 31 May [ha.] Land use 2000 2009 2010 2011 2012 Arable land 266 049 261 231 244 288 250 401 250 384 Vegetable garden 8 570 8 569 6 569 6 569 6 569 Orchard 7 485 7 279 7 279 7 276 7 293 Vinery 10 524 6 497 6 497 6 457 6 465 Grass 124 421 117 924 49 267 48 690 48 690 Agricultural area 417 049 401 500 313 900 319 393 319 401 Forest 165 580 205 011 205 379 206 607 207 493 Reed 2 069 2 072 2 072 2 110 2 110 Fishpond 429 432 432 421 421 Crop land 585 127 609 015 521 783 528 531 529 425 Uncultivated area 110 234 71 288 158 520 152 449 151 563 Total 695 361 680 303 680 303 680 980 680 988 Source: KSH Statistical Yearbook 2012, Table 7.1.1.

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The detailed structure of land cultivation and its change over 12 years is shown in Table 17 below. Table 17 Changes in the area of arable agricultural lands according to plants grown Area of the harvested arable plants [ha.] 2001–2005. 2006–2010. Plants 2010 2011 2012 average rate of years Cereals 149 822 133 404 112 774 137 608 148 286 of which: Wheat 71 667 66 439 57 076 59 880 68 832 Corn (maize) 35 940 31 744 29 071 43 100 46 161 Barley (autumn) 4 847 4 843 5 534 5 828 4 920 Barley (spring) 26 607 19 920 13 102 15 890 12 835 Rye 1 143 1 504 1 327 1 505 1 610 Oat 4 173 3 999 2 566 5 280 6 110 Triticale 3 911 4 273 3 503 4 835 5 502 Potatoes 1 569 1 201 736 830 544 Pea 767 1 858 1 795 1 473 2 531 Soybean 217 421 563 1 350 1 421 Sunflower 38 078 38 339 38 990 48 000 44 987 Rapeseed 12 438 22 676 21 103 19 694 2 420 Tobacco 77 76 80 80 59 Sugar-beet 1 937 836 – – – Silage (corn) 5 152 5 877 3 289 5 230 6 332 Mixed pickles 53 49 106 28 31 Lucerne 8 008 7 916 7 727 7 770 7 272 Red Clover 1 042 461 452 782 1 217 Other fodder 2 347 2 347 2 934 4 608 4 350 of which Spring fodder-mix 90 69 – 123 474 Autumn fodder-mix 33 9 3 457 471 Other 2 677 2 565 2 295 2 103 2 342 Vegetables 1 212 592 262 542 910 Cultivated area – total 225 396 218 620 193 106 230 098 222 702 Uncultivated area 27 057 32 455 51 182 20 303 27 682 Arable land – total 252 453 251 075 244 288 250 401 250 384 Source: KSH Statistical Yearbook 2012, Table 7.1.2. A significant change has taken place in the size of agricultural estates: while in 2000 the average property size was 1092 ha, until 2010 it decreased almost by half to 586 ha (see Table 18). Table 18 Number and average size of agricultural estates (ha per estate) Number of estates Change (%) Average estate size(ha) Change (%) 2000 2010 2010/2000 2000 2010 2010/2000 Borsod-Abaúj-Zemplén 266 406 270 323 1,0 1 092 586 -46,09 Hungary 4 652 448 4 611 606 -1,0 669 536 -20,0 Source: KSH T-Star The number of agricultural employees also decreased significantly from 2000 to 2010 (see Table 19): the number of full time employees of agricultural enterprises were 45% less in 2010, which means 3621 persons. Though the number of part time employees increased, they still represent less than 8% of all agricultural employees. Table 19 Number of employees in agriculture Full time employees (40 hours/week) Part time employees (but >50 hours/month) Number of full time employees Change (%) Number of part time employees Change (%) 2000 2010 2010/2000 2000 2010 2010/2000 Borsod-Abaúj-Zemplén 6 615 3 621 -45,0 192 287 49,0 Hungary 127 384 69 078 -46,0 5 363 7 610 42,0 Source: KSH T-Star

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Both the animal stock and the number of animal breeding farms decreased in the county at a rate larger than the national average between 2000 and 2010. The animal stock of 2010 is 73,7% of that of 2000 (see Table 20). Table 20 Animal husbandry Animal breeding farms Animal stock Number of animal breeding Change (%) Number of animals Change (%) farms 2000 2010 2010/2000 2000 2010 2010/2000 Borsod-Abaúj-Zemplén 108 88 -18,5 147 625 108 734 -26,3 Hungary 2 438 2 188 -10,3 3 097 537 2 498 313 -19,3 Source: KSH T-Star

Tourism Tourism is mainly based upon the valuable natural environment that gives place to active tourism and the health and wellness services built upon the treasure of thermal and healing waters. The special environmental and cultural heritage values of the county are the following: Tokaj Hegyalja, famous for its vines and has been chosen to be part of the world heritage in cultural land category; Zemplén that is rich in castles and forest hiking routes; the historical city centre of Miskolc; the surroundings of the castle of Diósgyőr and the area of Lillafüred; the district of the dripstone cave of Aggtelek with the reviving castle of Edelény and the smaller rural style touristic developments; and the special natural properties of the Bükk mountains (e.g. the Lázbérci lake). Those thermal and healing baths of the county which are significant from touristic point of view are the following: the cave bath of Miskolc-tapolca, Zsóry bath in Mezőkövesd, Végardó bath in Sárospatak. The county is rich in micro settlements and woodland areas therefore is perfect for rural, natural tourism. The distribution and turnover of commercial accommodations (distribution of guest nights) on a regional district level is shown by Table 21. Table 21 Tourism 2012. Distribution of accommodations in the districts, BAZ County Tourism, 2012 Commercial accommodations Other (termed “private” till 2009) accommodations

guest guest average guest nights re average guest District of which: capacity, of which: capacity, guest nights staying time accommodating guest nights staying time nights per foreigner December foreigner July 31 (nights) capacity (nights) host 31. Cigándi – – – – – 40 118 – 1,8 29,5 Edelényi 346 8 197 63 2,3 23,7 586 5 064 678 2,9 65,8 Encsi 130 … … … … 41 76 44 4,2 15,2 Gönci 1 057 30 569 905 2,1 28,9 875 7 999 122 4,1 73,4 Kazincbarcikai 551 28 208 8 648 2,9 51,2 271 3 497 209 2,7 94,5 Mezőcsáti – – – – – 103 577 238 2,7 38,5 Mezőkövesdi 3 102 138 376 27 947 2,6 44,6 4 288 39 324 17 508 3,3 61,2 Miskolci 7 391 262 280 57 413 2,2 35,5 1 170 26 848 3 581 2,5 160,8 Ózdi 848 7 971 3 196 2,3 9,4 265 2 365 362 1,9 73,9 Putnoki 711 25 183 3 583 2,3 35,4 430 6 817 328 2,7 113,6 Sárospataki 2 458 69 253 18 332 2,7 28,2 928 11 643 2 624 2,5 99,5 Sátoraljaújhelyi 1 891 54 345 2 723 2,8 28,7 785 8 296 150 2,8 87,3 Szerencsi 198 4 481 585 1,5 22,6 87 561 530 2,2 112,2 Szikszói 17 … … … … 87 540 – 3,4 67,5 Tiszaújvárosi 1 027 37 766 21 095 2,7 36,8 252 3 712 851 3,2 68,7 Tokaji 1 132 42 186 9 651 1,7 37,3 776 8 995 1 275 1,8 96,7 Total BAZ 20 859 710 369 154 627 2,3 34,1 10 984 126 432 28 500 2,7 83,1 Source: KSH Statistical Yearbook 2012, Table 10.11.

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Summing up the data of the enterprises of the county by sectors (see Table 22.) the largest number of registered enterprises – in line with the national pattern – are in the field of trade and services (44,9 thousands), followed by the ones operating in “traditional” land related national economic sectors (20,9 thousands) and finally companies working in the field of mining, processing industry, energy related and public utility services (8,16 thousands). The majority of the enterprises are in the area of the city of Miskolc and its agglomeration according to 2010 data. Table 22 Number of enterprises by sector groups in the districts of BAZ County (2010) agriculture, game mining, manufacturing- management, forestry, fishery processing industry, power, District trade and services (A+B sectors, end of year) gas, steam, water supply (C+D+E sectors, end of year) Miskolci 3 126 3 751 24 494 Edelényi 1 062 295 1 251 Encsi 1 340 189 843 Kazincbarcikai 674 517 3 168 Mezőkövesdi 1 954 647 2 584 Ózdi 913 545 2 757 Sárospataki 2 880 331 1 422 Sátoraljaújhelyi 1 002 219 1 512 Szerencsi 2 621 513 1 869 Szikszói 912 149 728 Tiszaújvárosi 682 419 2 196 Abaúj-Hegyközi 1 237 152 513 Bodrogközi 977 79 360 Mezőcsáti 525 153 505 Tokaji 1 190 203 757 B-A-Z County 20 995 8 162 44 959 Hungary 420 137 173 112 1 047 337 Source: KSH T-Star

1.3.3 Energy demand, total primary and end use, their regional distribution and consumer and energy source structures The energy consumption of Hungary and in more detail, the consumption of its counties (NUTS III.) changed only very slightly in the past 20 years (except for 1990-92, when the production of industries with outdated technologies ceased or decreased) (see Table 23) - it remained between 1050 PJ and 1153 PJ until in 2012 it fell below 1000 PJ (to 999,3 PJ). Within the energy balance the domestic production decreased and both import and export increased. Table 23 Total energy consumption and energy balance of Hungary between 1990 and 2012 (PJ)

Year Production Import Sources together Export Stock changes Total consumption

1990 634,1 653,5 1 287,6 70,8 13,1 1 203,7 1991 624,7 573,0 1 197,7 47,1 -13,1 1 163,7 1992 588,4 515,0 1 103,4 58,7 -14,7 1 059,4 1993 575,3 602,4 1 177,7 84,9 17,0 1 075,8 1994 568,9 585,1 1 154,0 97,6 -11,8 1 068,2 1995 575,0 617,5 1 192,5 98,8 9,1 1 084,6 1996 565,0 663,6 1 228,6 88,0 28,7 1 111,9 1997 549,7 649,2 1 198,9 86,3 25,8 1 086,8 1998 516,8 675,3 1 192,1 79,8 29,0 1 083,3 1999 500,0 657,7 1 157,7 84,4 -4,2 1 077,5 2000 485,2 665,4 1 150,6 82,8 12,7 1 055,1 2001 478,8 675,8 1 154,6 96,6 -29,1 1 087,2

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Year Production Import Sources together Export Stock changes Total consumption 2002 462,8 716,5 1 179,2 106,0 6,4 1 066,8 2003 434,7 786,5 1 221,2 108,2 21,5 1 091,6 2004 425,0 784,7 1 209,7 120,5 1,1 1 088,1 2005 428,0 873,6 1 301,6 140,8 7,5 1 153,2 2006 428,8 884,4 1 313,2 158,9 2,3 1 152,0 2007 427,0 850,9 1 277,9 153,6 -1,1 1 125,4 2008 435,9 868,1 1 304,0 145,3 32,3 1 126,4 2009 458,6 733,0 1 191,6 106,3 29,5 1 055,8 2010 460,6 768,1 1 228,7 133,7 10,0 1 085,0 2011 446,5 704,7 1 151,1 150,3 -52,3 1 053,1 2012 439,1 683,4 1 122,5 158,9 -35,7 999,3 Source: KSH – Energy management, Table 3.8.1. Referring to the energy consumption figures of the 1997 county level energy statistics [3], it can be seen that the total energy consumption of BAZ County was the third highest (150-200 PJ/year) in Hungary after Budapest and Pest County (see Figure 17). The final energy consumption (80-100 PJ/year) of the county was the second highest in the country (see Figure 18).

Fig. 17. Distribution of total energy Fig. 18. Final-direct-energy consumption consumption in Hungarian counties in the regional structure of Hungary (PJ/year) (PJ/year) The volume of the total final - direct - energy consumption of Hungary did not change much either over the past 15 years (see Table 24.), however, its structure has undergone significant changes: the industrial, agricultural and municipal consumption decreased remarkably, while the energy demand of transport and trade increased vigorously. Table 24 The final – direct – energy consumption in main sectors of Hungary (thousand toe if not indicated otherwise) Total Year Industry Transport Trade and services Households Agriculture PJ/year final consumption 1995 4 174 2 469 2 930 6 413 660 16 645 696 427 1996 4 436 2 332 3 257 6 675 717 17 417 1997 3 867 2 561 2 929 6 406 695 16 458 1998 3 658 2 986 3 049 5 591 703 15 987 688 603 1999 3 421 3 170 3 057 5 873 730 16 251 2000 3 389 3 165 3 142 5 701 645 16 042 2001 3 585 3 244 3 362 6 061 679 16 931 2002 3 630 3 393 3 180 6 082 656 16 941 2003 3 473 3 426 3 222 6 771 619 17 512 2004 3 509 3 706 3 306 6 165 624 17 311 2005 3 333 4 170 3 445 6 299 621 17 869 2006 3 426 4 426 3 422 6 511 594 18 380 2007 3 380 4 578 2 854 5 553 498 16 864 2008 3 352 4 846 2 789 5 586 527 17 101

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Total Year Industry Transport Trade and services Households Agriculture PJ/year final consumption 2009 2 730 4 659 2 831 5 515 439 16 173 2010 2 867 4 461 3 126 5 748 488 16 689 2010 PJ/year 119 955 186 648 130 792 240 496 20 496 698 267 Share % 17,18 26,73 18,73 34,44 2,92 100 Source: KSH – Energy management, 5.7.1. So far there has been no analysis carried out for smaller territorial units – regional districts – due to the lack of the corresponding energy consumption statistics, but it will soon be necessary for the model region.

Source: PYLON Kft. Fig. 19 Energy source structure of total energy consumption of Hungarian counties [3]

Source: PYLON Kft. Fig. 20 Sectoral structure of final energy consumptions in Hungarian counties (1997) [3]

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1.3.3.1 Volume of electricity consumption on national and county level The net inland power consumption of Hungary (see Table 25) changed each year in the past 12 years in terms of both quantity and structure. Between 1991 and 1993 it was decreasing, then it was continuously increasing reaching 37.4 TWh/year in 2008, then due to the economic crisis decreased again to 35-36 TWh/year (208.8 PJ/year). The indicators of power generation show a similar fluctuating pattern. Table 25 National and county level power consumption in Hungary (GWh)

Power plants own consumption, Final power Year Generation Import Sources together Net inland consumption Export network losses consumption altogether

1990 28 436 13 308 41 744 6 573 32 990 2 181 41 744 1991 29 963 8 409 38 372 6 369 30 956 1 047 38 372 1992 31 685 3 540 35 225 5 407 29 745 73 35 225 1993 32 915 2 774 35 689 6 919 28 470 300 35 689 1994 33 515 2 955 36 470 6 809 28 739 922 36 470 1995 34 017 3 181 37 198 7 503 28 919 776 37 198 1996 35 102 6 178 41 280 7 422 29 877 3 981 41 280 1997 35 396 7 839 43 235 7 698 29 848 5 689 43 235 1998 37 188 3 974 41 162 7 846 30 082 3 234 41 162 1999 37 154 3 447 40 601 7 772 30 445 2 384 40 601 2000 35 191 6 196 41 387 7 480 31 150 2 757 41 387 2001 36 417 7 004 43 421 7 392 32 196 3 833 43 421 2002 36 158 7 624 43 782 7 083 33 332 3 367 43 782 2003 34 145 11 439 45 584 6 754 34 330 4 500 45 584 2004 33 708 10 528 44 236 6 435 34 745 3 056 44 236 2005 35 755 11 809 47 564 6 463 35 519 5 582 47 564 2006 35 859 13 266 49 125 6 475 36 592 6 058 49 125 2007 39 959 14 278 54 237 6 698 37 247 10 292 54 237 2008 40 026 13 348 53 374 6 530 37 398 9 446 53 374 2009 35 908 14 760 50 668 6 168 35 253 9 247 50 668 2010 37 375 14 060 51 435 6 565 36 005 8 865 51 435 2011 35 984 21 850 57 834 6 268 36 361 15 205 57 834 2012 34 408 23 628 58 036 6 110 35 520 16 406 58 036 Source: KSH – Energy management, 3.8.2.

In the sectoral structure of domestic power consumption (see Table 21.) the demand of municipal and commercial/service sectors increased proportionally with the significant decrease of the demand of industry.

The analysis of the electric power consumption of BAZ county is based on the informative data of a former analysis, which shows (see Table 26) that the total direct – final – power consumption of the sectors (11.269 PJ/year) had a share of 12.65% of the total consumption of the county, while the power consumption of the county represents a similar, 13.22% share in the

Source: MVM total national consumption. Fig. 21 Structure of sectoral electric power consumption

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Table 26 Energy consumption structure of BAZ County in 1997 [3] TJ Natural County final Solid Liquid LPG gas Heat Power Other gas consumption Production sectors 362 36 283 6 919 157 11 261 8 057 2 767 65 808 Agriculture 157 517 151 74 20 204 0 1 123 Public services 585 256 3 236 413 781 819 0 6 088 Households 3 722 72 7 045 648 2 351 2 190 0 15 029 Total 4 827 37 129 17 351 1 293 14 413 11 269 2 767 89 047

The average electric energy consumption of households in BAZ County is recently 1795 kWh/year/household (see Table 26), which shows a moderate decrease compared with the maximum consumption of 2009 (1920 kWh/year/household) due the effect of energy saving interventions.

1.3.3.2 Distribution of heat energy supply, district heating demands The number of households and industrial entities connected to district heating significantly decreased in the county, furthermore such service is only available on 7 settlements (see Table 27.) as opposed to 10 settlements in the past. However, the city of Miskolc is improving its conventional fossil fuel based district heating system on the cost of significant investments and converts it to utilize renewable – geothermic – energy. It should be examined as to whether with the development of the terminated (Mezőkövesd and Szerencs) municipal district heating systems this otherwise environment friendly consumption method may revive. There are in total 56 542 households and 1694 industrial and other consumer points registered in the seven municipalities where district heating is recently available. These municipalities are: Kazincbarcika, Miskolc, Ózd, Putnok, Sárospatak, Sátoraljaújhely and Tiszaújváros.

Table 27 Summary figures of district heating producers, suppliers, industrial and other customers in the settlements with district heating in BAZ County (2007)

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Continuation of Table 27

According to a former statistical compilation (2010) about piped/wired energy consumption on regional district level (see Table 28.) the district heating consumption of BAZ County was 1786.08 TJ.) Energy demand of public buildings is also missing from the official statistics, just as data on actual and potential regional, county, sub-regional district, municipal level energy/capacity supply (MW) as well as data on storage capacities, technical limitations of loads and distribution capacities. These can only be ordered to be elaborated for an assignment fee. Table 28 Electricity, gas and district heating consumption in the districts of BAZ County (2010)

Amount of heat used for Total provided electricity Total provided piped gas County Regional district residential district heat supply (1000 kWh) (1000m3) (GJ) Abaúj-Hegyközi 17824 7848,9 0 Bodrogközi 17841 7467,1 0 Edelényi 48034 16677,2 0

Encsi 31294 11307,6 0 Kazincbarcikai 850853 48966,2 351520

Mezőcsáti 21061 6578,1 0 Zemplén

- Mezőkövesdi 156405 27727,2 0

Miskolci 909366 178502,4 875361 Abaúj

- Ózdi 253234 36312,1 278640 Sárospataki 46379 13589,1 26656

Sátoraljaújhelyi 57528 16037,5 34654 Borsod Szerencsi 72911 20829,1 0 Szikszói 21964 10332,9 0 Tiszaújvárosi 480160 25690,3 219245 Tokaji 23931 7580,4 0 Total for BAZ county 3 008 785,00 435 446,10 1 786 076,00 Source: WWF

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1.3.3.3 Utilization of renewable energy sources, national and local consumption The known, renewable based energy consumption of Hungary increased slowly in the past few years reaching 80.4 PJ in 2010 (see Table 29.), in which biomass based energy consumption dominates with 79% of the total consumption.

Table 29 Structure of renewable based energy consumption in Hungary by technologies (TJ) RES technology 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Hydropower 587 641 670 698 616 737 728 669 756 767 821 677 Wind power 0 0 4 4 14 20 36 156 396 737 1 192 1 922 Wood, wood waste, other solid residues 31 095 29 295 30 635 31 222 32 671 34 356 43 535 44 141 48 179 51 068 60327 63 756 Geothermal 3 600 3 600 3 600 3 600 3 610 3 600 3 627 3 600 3 600 4 000 4 030 4 130 Biogas 0 6 90 136 197 280 297 512 700 913 1 347 1 516 Solar heat 0 0 60 70 76 76 81 83 105 159 190 225 PV 0 0 0 0 0 0 0 1 2 2 2 3 Municipal waste (organic fragment) 1 085 1 218 1 299 998 754 687 1 382 1 961 1 694 1 931 1 950 2 229 Bio fuels 0 0 0 0 0 0 214 450 1 215 6 904 6 850 5 947 Total 36 366,8 34 759,8 36 357,2 36 728,0 37 938,0 39 755,8 49 900,1 51 572,9 56 647,0 66 481,3 76 708,9 80 405 Source: KSH – Energy management, 5.7.4.

According to the Hungarian National Renewable Energy Utilisation Action Plan (NREUAP), the demand for renewable energy would double in the mid-term (by 2020), which means energy produced from RES will represent a 14.65% share (vs. the 13% obligation in the RES Directive 2009/28 EC) in national gross energy consumption pursuant to the accepted target. This means that based on the RES production of 55.25 PJ/year in 2010, it will be at least 120.57 PJ/year (see Figure 22. and 23.). It should be noted, however, that the NREUAP is being revised now (2014 January), and it is not known yet as to whether the targets will be affected or not.

Fig 22 Distribution of electrical energy, renewable Fig 23 Distribution of electrical energy, energy fuels utilised in coolin and heating and renewable energy fuels utilised in cooling and transport (2010) heating and transportation (2020)

Source: National Development Ministry: Renewable Energy Utilisation Action Plan on Source: National Development Ministry: Renewable Energy Utilisation Action Plan the development of the utilisation of renewable energy sources till 2020 (Data on the development of the utilisation of renewable energy sources till 2020 (Data Provision as prescribed by paragraph (3), article 4of Directive 2009/28 EC), Budapest, Provision as prescribed by paragraph (3), article 4of Directive 2009/28 EC), December 2010 Budapest, December 2010

Concerning the structure of renewable energy sources the dominant role of biomass would gradually decrease and give space to other, more up-to-date technologies utilizing e.g. sun, wind and geothermal energy. According to the Action Plan primarily up-to-date and

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environment friendly ways of heat production based on local renewable energy sources will be subsidized in the first period. Hungary intends to increase also the proportion of renewable based electricity production that increased from 1% in 2000 to 8% in 2010 (see Table 30.). Concerning the structure of renewable based electricity production in terms of energy sources the dominant source is and will also be biomass. Table 30 Share of electric power produced from renewable energy sources (%) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Share of renewable sourced electricity (RES-E) in power production 0,7 0,7 0,7 1,0 2,8 5,3 4,3 4,7 5,9 8,1 8,1 Of which municipal waste, from RES part 22,7 21,7 12,2 10,0 2,9 3,1 6,1 7,5 4,6 3,9 4,8 biogas and landfill gas 0,0 3,0 4,6 5,5 2,3 1,3 2,4 2,5 2,9 3,3 3,7 biomass 4,0 2,7 2,5 32,5 72,3 84,2 76,5 73,1 74,7 73,4 67,5 wind power 0,0 0,3 0,5 1,1 0,6 0,5 2,8 5,8 8,7 11,4 17,7 hydropower 73,3 72,2 80,2 51,0 21,9 10,7 12,1 11,1 9,0 7,9 6,2 Source: KSH – Energy management, 5.7.3.

Due to the lack of energy statistics on county level we relied on the data of a former survey and analysis [3]. Based on this it can be claimed that in BAZ County the energy content of available biomass is 6.8 PJ, of which a dominant part (3.8 PJ) is forestry products and by- products (see Figure 24). Only a limited part of this quantity is utilizable sustainably until 2020.

Fig. 24 Various kinds of available biomass volumes (PJ) in the counties of Hungary [3]

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1.4 Public sector overview It is expedient to take into account the results of the analysis of the population and housing features of the county (from section 1.2.3.) also here and in the following sections describe the number of public sector employees, their activities and their contribution to the GDP. The number of full time employees doing (private) administrative and service supporting activities in the county is 8754 persons (2012). About the double of this (15 421 persons) work in the field of public administration and defence, altogether 15.8-13.8% of all employees (see Table 31). These sectors together with education and human and health services in total contribute with 7.4% to the national gross added value (see Table 32). Table 31 Number of employees in Table 32 GDP produced by economic economic sectors in BAZ County 2012 sectors in BAZ County

Full time employee Code of Part time Sector of Total sector employee gross added value (GDP) by sectors Total which female re re Code of regional Hungarian A Agriculture, Forestry, Fishery 5 075 1 112 666 5 741 Sector million Ft sector B Mining 340 60 22 361 sectoral GDP, %

C Manufacturing/processing 38 143 12 839 2 722 40 865 2007 2010 2011 Power, gas, heat/steam and D 1 679 352 11 1 690 cooling supply A Agriculture, forestry, fishery 39 832 36 245 48 045 54,6 4,4 Industry without water supply B+C+D and waste water treatment and 40 162 13 251 2 754 42 917 B,C,D,E Industry 369 478 321 429 340 719 58,8 5,5 solid waste management Of which Water supply and waste water C 303 789 247 943 280 213 61,2 5,4 Manufacturing/processing treatment and solid waste E 3 021 722 270 3 291 management, environmental F Construction 51 437 48 974 50 097 59,1 5,3 clean up Trade, transport, storage, G,H,I 144 793 145 800 150 417 56,7 3,5 B+C+D+E Industry 43 183 13 972 3 024 46 207 accommodation, catering F Construction 7 423 784 1 612 9 036 J Information, communication 24 401 17 298 19 113 71,2 1,6 G Trade and vehicle repair 14 840 7 559 4 899 19 739 Financial services, K 23 570 20 659 20 749 57,5 1,9 H Transport and storage 9 907 2 491 1 281 11 188 insurance L Real estate transactions 63 888 68 291 68 441 54,1 3,3 I Accommodation, catering 3 787 2 369 1 445 5 232 Scientific and technical J Information, communication 1 072 344 251 1 323 M,N activities, administration and 43 910 46 195 51 176 58,2 2,6 support of services K Financial services, insurance 1 843 1 427 484 2 327 Public administration, L Real estate transactions 980 391 305 1 285 defense, social security, O,P,Q 207 538 218 337 190 852 60,0 4,8 M Scientific and technical activities 2 733 1 446 843 3 576 education; human, health and social services Administration and support of N 7 558 3 486 1 195 8 754 Art, entertainment, leisure, services R,S,T,U 28 334 27 682 26 639 55,8 4,0 Other services Public administration, defence, O 15 138 6 913 283 15 421 social security A–U Total 997 181 950 910 966 248 58,2 4,1 P Education 14 803 11 568 895 15 698 Q Human, health and social services 21 393 13 613 3 417 24 811 Source: KSH – Statistical Yearbook, 2012 Table 6.1.2. R Art, entertainment, leisure 1 325 717 270 1 595 S Other services 802 387 424 1 226 A–S Total 151 864 68 580 21 296 173 160 Of which: private sector 98 450 35 326 17 141 115 591 public sector 48 591 29 972 3 415 52 006 Source: KSH – Statistical Yearbook, 2012 Table 5.1.2.

The real estate management activities of local governments in the past 12 years (see Table 33) incurred an increasing refurbishment and maintenance cost despite a decreasing number of maintained buildings. Table 33 Real estate-management of municipalities of BAZ county 2000 2009 2010 2011 2012 Maintained buildings 2 547 2 175 2 173 2 182 2 085 of which: dwelling houses 1 996 1 813 1 749 1 721 1 607 Entities rented out 13 269 11 619 11 299 11 087 10 984 Of which: rented out flats (tenements) 10 648 9 176 8 848 8 723 8 583 Expenditure on dwelling house refurbishment, 1000 Ft 544 701 749 758 652 372 432 974 776 717

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2000 2009 2010 2011 2012 Buildings refurbished 25 14 6 9 14 Number of tenements refurbished 167 103 43 32 94 Refurbishment costs of tenements, 1000 Ft 219 197 77 080 35 835 22 887 58 986 Source: KSH – Statistical Yearbook, 2012 Table 5.3.3.

1.5 The national and regional situation of the transport sector According to a survey on the national distribution of passenger and freight transport [3] by different transportation sub-sectors (train, road, water, air and other transportation forms) the share of road transport had become dominant already in the past (see Table 34.), and this tendency has further strengthened since then. In the mid-term this tendency will probably be turned somewhat in the direction of train transport if appropriate incentives are applied. Table 34 Distribution of different transport modes in Hungary Freight transport Passenger transport performance* shares (%) performance** shares (%) 1990 1997 1990 1997 Railways 32,4 27,4 12,3 10,1 Roads 29,4 51,0 76,8 86,3 Water ways 28,2 6,1 0,1 0,1 Air 0,0 0,3 1,8 3,5 Other 10,0 15,2 9,0 not available Total 100,0 100,0 100,0 100,0 *measured in ton km ** measured in passenger km The energy consumption of the domestic transport system is recently 200 PJ/year and is expected to increase in the mid-term and will be around 220 PJ/year in the long-term according to the long term energy strategy (see Figure 25.). In the distribution of energy sources the share of bio fuel is expected to increase to 10% in 2020 and 14% in 2030, whereas the share of electricity to 3% and 9% respectively. In the meantime, the share of oil derivatives will decrease from 94% in 2009 to 76% in 2030.

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Fig. 25 Total energy Fig. 26 The international „Helsinki” consumption and structure transport corridors and the TEN-T of the transportation sector and prognosis network system in Hungary for 2020 and 2030 The Hungarian road system gives place to Pan European corridors. According to the regional development concept of the county out of the so called „Helsinki corridors” number V. (Venice – Trieste – Koper – Ljubljana – Budapest – Ungvár – Lvov – Kijev) crosses the territory of the county (see Figure 26). It is also important to mention the northern-southern TINA corridor that crosses the county via Tornyosnémeti – Miskolc – Emőd (it starts with Kaunas – Lublin – Kassa and leaving the county it reaches Nagyvárad via Debrecen – Berettyóújfalu and Biharkeresztes The highways of the county are M3, M4, M30 and M35 (see Figure 27). National highways (as classified in the National Spatial Development Concept) No 3, 25, 26, 27, 35, 37 and 38 cross or touch the county. Their length is 365 km, 5.5% of the national highway network. [7]

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Fig. 27 Proposed Development of Quick Road Network [7]

Fig. 28 Proposed Development of Railway Network [7]

Fig. 29 Airports Utilisable for Fig. 30 Proposed Nation-wide Civil Aviation Purposes [7] PublicTraffic Ports [7] Source (Fig. 27., 28., 29., 30.): OTT National Regional Development Concept of Hungary 1997.

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2. Legal background The given planning task („CEP-REC Regional Energy Concepts of Hungary based on county BAZ model-region”) is a typical regional energy management and energy supply concept and sector development oriented task, for which, besides the relevant EU directives, also domestic regulations (should) apply in line with the points listed below. Governmental Decree 218/2009. (X.6.) provides for the content of a spatial/regional development concept, a regional development programme and a spatial plan as well as for their compatibility, for the detailed rules of their elaboration, public debate, acceptance and publication. Existing regional development and energy sector guidelines, documents and up to date data should be made available for the relevant state and municipal bodies and assigned planning organisations. If the required data does not exist or is only incompletely available, then competent organisations should provide for collecting and produce them (or having them elaborated). Lack of data is one of the biggest impediments of planning in Hungary. Area related that is regional, county, district (LAU 1 entities) and in many aspects municipal level energy data have been missing in Hungary since the good practice of such detailed data publication (for example, in the Energy Statistical Year Books published by the Energy Authority) ceased around 25 years ago. It is recommended – also referring to the databases of other EU members states – that area and sub-sector level energy statistical data (e.g. on power, gas, solid and liquid fuel supply, RES production and mining) should be collected, stored and handled in an institutionalised manner as well as the conditions of their public access and use should be established.

3. RES situation Regarding the supply of conventional energy resources, energy conditions of Hungary can be deemed average based on researched information on existing and explorable mining fields (for a spatial distribution see Figure 31). Renewable energy potentials are much better, for example direct solar radiation is provides good possibilities in the given climatic conditions of the country and the whole band between 47° and 49° degrees North latitude. Similarly, biomass residues (from arable land, forestry and animal husbandry) show favourable possibilities (see Figure 32). The potential volume of geothermal energy is also high but it is more prevailing in the middle and southern parts of Hungary; in BAZ County it shows some significance only in the south and some middle spots of the county. Possibilities for wind energy are the best in West Hungary, in other regions current technologies only allow for some limited utilization at places. Utilization of hydro energy with micro run-of- the-river type hydropower plants (as opposed to storage types i.e. dams on rivers) can be encouraged. The hierarchy (subsets) of various energy potentials can be seen below so that they can be interpreted unambiguously.

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 Theoretical potential in the given area . technical potential economic potential o sustainable potential (medium-long term, e.g. till 2030) . realizable potential in the short- medium term (till 2020)

Source (Fig. 31, 32): OTT National Regional Development Concept of Hungary 1997. Fig, 31 Complex Traditional Regional Fig. 32 Areas Proposed for Utilisation Structure of Energy Carriers [7] of Renewable Energies [7]

As regards investment support in the field of energy EU and domestic funds between 2014 and 2020 will be distributed via various operative programmes – the main – but not sole - channels will be the Environment and Energy Efficiency Operational Programme (KEHOP) Regional and Urban Development Operational Programme (TOP) Economic Development and Innovation Operational Programme (GINOP) Rural Development Operational Programme (VOP) [10] Integrated Transport Development Operational Programme (IKOP) Besides the direct RES, energy efficiency and climate policy priorities in KEHOP, the low carbon economy transition in urban environment and again low carbon transition and resource efficiency are explicitly mentioned in TOP and VOP respectively. IKOP lists energy efficient transportation, railway development and sustainable urban transport amongst its objectives. Other OPs indirectly can also be related to the transition towards sustainable energy use. As to operational support, the most important is the feed in tariff for RES-E. RES heat is only supported via investment supports on an application basis, however, the long promised (but long delayed and not yet introduced as of January, 2014) reform of the feed in tariff system is hinted at supporting RES technologies able for CHP only via RES heat produced (as opposed to electricity.

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References [1] BAZ Megyei Önkormányzat: BAZ Megye Területfejlesztési Koncepciója (Miskolc, 2013. dec.) [2] KSH – VÁTI Kht.: Magyarország környezetstatisztikai atlasza (Budapest, 2005.) [3] PYLON Kft. – VÁTI Kht.: Országgyűlési beszámoló alapozó tanulmánya: Dr. Unk Jánosné: „AZ ENERGIAGAZDÁLKODÁS ÉS ENERGIAELLÁTÁS HAZAI TERLETI FOLYAMATAINAK HELYZETÉRTÉKELÉSE az 1990-1998. közötti időszakra (Budapest, 1999. szept.) [4] Nemzeti Fejlesztési Minisztérium: Magyarország Megújuló Energia Hasznosítási Cselekvési Terve a 2020-ig terjedő megújuló energiahordozói felhasználás alakulásáról. 2010 december [5] MEH-PYLON Kft. Dr. Unk Jánosné és munkacsoportja: Nemzeti Megújuló Energiahasznosítási Cselekvési Terv (NMCST) háttértanulmányai „A", ;,B", „C" kötet: Hasznosítható megújuló energiaátalakítási technológiák, megújuló energiapotenciálok, gazdasági-benchmark technológiák GREEN-X modell szerinti számításai, alapforgatókönyvek, változatok" A támogatás politikai téma szerzői: Dr. Unk Jánosné, Kapros Zoltán, Mészáros Géza, Budapest, 2010, május [6] NFM: „NEMZETI ENERGIASTRATÉGIA 2030” Budapest, 2012 [7] „ORSZÁGOS TERÜLETFEJLESZTÉSI KONCEPCIÓ (OTK) Energiagazdálkodási fejezetek” és megalapozó háttértanulmányai, Az Országgyűlés 35/1998. (III.20.) OGY Határozattal elfogadva. Háttéranyagok kidolgozója_ PYLON Kft., témafelelős: Dr. Unk Jánosné Budapest,1996-97. [8] Pataky T. – Dr. Unk Jánosné: „Települések mérnöki műveletei és létesítményei”. BME. Tankönyvkiadó 1990. [9] BMGE Gazd. és Társad. Tud. Kar Szociológiai és Kommunikációs Tsz., Település és Területfejl. szakokt.: Műszaki Infrastruktúra tantárgy, Dr. Unk Jánosné: „Területi energiagazdálkodás és ellátás, megújuló energiahasznosítás” előadások 2004. [10] NFÜ-ÖKO Zrt. dr. Tombácz Endre: „Környezeti és Energiahatékonysági Operatív Program 2014-2020 (KEHOP 3. sz. változat, 2013.10.20.) STRATÉGIAI KÖRNYEZETI VIZSGÁLAT” Energia munkarész kidolgozója: PYLON Kft., Dr. Unk Jánosné

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