Mining and Energy Supply

Mining

By international comparison, ore mining in At the same time, the solid and liquid re- was a signifi cant industry during sources that are available, represent a colossal the Middle Ages. value and there is an ample supply of certain The country was also a leader in gold energy-rich materials, ores, and minerals (coal, mining in 13th century Europe (two fi ft hs of lignite, bauxite, limestone, etc.), which arises world production), and ranked second in sil- due to the specifi c geological structure and ver mining (one quarter). character of the Carpathian Basin. The world’s first mining school Even though the domestic mining of (‘Bergschola’) was founded in 1735 in the most natural resources might be limited, and Kingdom of Hungary at Selmecbánya the country is strongly import-oriented, avail- (Schemnitz, today Banská Štiavnica in able resources play a fundamental role in the Slovakia), which was bestowed the rank of a national economy, being an important factor mining academy (‘Bergakademie’) by Empress in its sustainability and contributing to the Maria Theresia in 1770. gradual improvement in living standards. The once famous precious metals mining At the end of 2007, the National Cadastre industry had fallen into decline by the early of Resources registered 23.8 billion tons of in- 19th century, but economic prosperity during dustrial (recoverable), and 37.7 billion tons of the time of the Austro-Hungarian Monarchy geological reserves at 3,600 locations. lent a new impetus to iron ore production and Projections indicate 480 billion tons of the quarrying of construction materials. industrial, and 644 billion tons of, as yet-to- Following World War I, almost all the fi nd (prospective) natural resources nation- ore and salt mines, hydrocarbon resources and wide. one-third of coal deposits had been annexed About eighty diff erent mineral products by the Treaty of Trianon, as they were in ter- are known to be found in the country’s ter- ritories awarded to neighbouring countries. rain, 98.5% of which (by weight) are proven Aft er World War II, as was the case in reserves of solid minerals (37.7 billion tons). most Eastern Bloc countries, the share of min- Of the nation’s total mineral reserves, ing rose within overall industrial output, as a 67.4% are non-metallic mineral resources, result of hasty industrialisation and the con- 28% coals, 3.1% ores, and 1.5% are hydrocar- siderable eff orts required to meet the country’s bons (Table 30). demand from domestic resources for fuel, as Lignite, non-metallic mineral resources well as other raw materials. and certain construction materials represent Over the past thirty years or so, the spe- the greatest quantities, and are of considerable cifi c problems experienced by some branches fi nancial value. within the mining industry, and imperatives of Hungary is ranked among the fi ve lead- effi ciency, have led to a mining crisis and the ing producers of gallium and perlite in the drop in its share within industrial production world, whilst it occupies a rank of between from 11.2% (1950) down to 0.5% (2008). tenth and twentieth largest producer of baux- Hungary is a country with limited natu- ite, lignite and manganese. ral resources.

139 .. 23 > 100 > 100 > 100 > 100 > 100 > 100 > 100 > 100 > 100 > 100 > 100 25 (>50***) no production no production no production no production no production no production extractable resources 2007 production levels based on total 2007 production levels Average life-expectancy of reserves at life-expectancy of reserves Average .. 7 9 .. .. 37 21 336 975 151 192 276 1,236 10-58 29-93 16,004 17,307 99,549 203,648 141,131 Undiscovered Undiscovered (hypothetical) industrial reserve 19.2 32.4 26.8 43.6 82.0 36.5 52.6 100.2 726.5 110.4 1,986.2 2,245.5 4,376.8 1,002.4 1,301.0 2,362.7 4,855.0 1,074.5 23,789.6 reserves Industrial 01.01.2008 3,355.3*** million tons years 26.8 43.1 90.8 36.6 79.6 207.0 46.14 127.0 781.2 182.0 Mineral resources (2008) 1,596.7 3,199.7 5,782.2 3,200.0 2,872.3 4,220.1 8,035.8 1,889.8 37,723.8 01.01.2008 5,307.0*** Geological reserves Geological reserves Table 30. Table .hu) fh ...... 0.5 3.0 5.5 4.9 0.1 gas = 1 t. *** including non-conventional Makó deposit. gas = 1 t. *** including non-conventional 3 0.84 2.65 0.11 1.45 8.35 0.05 13.0 34.8 75.3 2007 Production in natural gas = 1 t crude oil. ** 1000 m 3 Type of mineral Type * 1000 m Hungarian Mining and Geological Institute (www.mb Crude oil Natural gas* Carbon dioxide gas** Hard coal Brown coal Lignite Uranium ore Iron ore Bauxite Lead-zinc ore Copper ore Precious metals Manganese ore Non-metallic minerals Raw materials for the cement and lime industry Dimension and crushed stone Construction sand, gravel Clays for the ceramic industry paludal lime mud Peat, Total Remarks: Source:

140 Solid Mineral Resources

Explored geological reserves of non-metal- Nyergesújfalu. The largest extraction centres lic mineral resources represent 20.4 billion for dimension and crushed stones are in the North tons, 52.5% of which is economical to recover. Hungarian and Transdanubian Mountains: Nearly 80% of the annual output of the more limestone (Tatabánya, Eger and Sütt ő); dolomite than 1,100 functioning quarries (61.4 million (Iszkaszentgyörgy, Gánt and ); basalt tons in 2007) is construction sand, gravel, di- (Várvölgy-Uzsa); and andesite (Tállya, Kisnána, mension and crushed stone. This volume of Márianosztra and Bercel). Additives used in production guarantees a long-term supply for the production of concrete (construction gravel the Hungarian processing industry and facili- and sand of fl uvial origin) are mainly found tates the export of some products, e.g. perlite, in the alluvial fans of the Danube, Sajó, Lajta glass sand and construction gravel. One can and Mura rivers (e.g. Bugyi, Kiskunlacháza, conclude that Hungary has a medium level of Hejőpapi, Nyékládháza, Hegyeshalom and non-metallic mineral resources, and the coun- Muraszemenye). The mining of clays for the try is even rich in some of them (e.g. quartz ceramic industry (bricks and tiles) shows a sand, perlite, bentonite, gypsum and zeo- relatively uniform spatial patt ern. The larg- lite) to be found in the North Hungarian and est clay pits are along the Danube (Bugyi and Transdanubian Mountains (Figure 118). Due to Dunavarsány), in the north (Görömböly and Hungary’s geological endowments (its base- Tiszavasvári), and in Transdanubia (Várvölgy- ment position in the Carpathian Basin) there Uzsa and Devecser). The main deposits of peat is an oversupply of building materials. High (as a fuel and raw material for the manufac- capacity limestone quarries, supplying raw ma- ture of fertilisers) can be found in South West terials for the cement and lime industry, operate Transdanubia (near Litt le Balaton). at Vác, , Beremend, Nagyharsány and

141 Coals. Although coal mining in Hungary output. Pannonian lignite with its low heating started at Brennbergbánya-Sopron as early as quality is economically recoverable by strip min- 1753, industrial-scale production gained mo- ing and used for energy generation. There are mentum with the expansion of steamship navi- 4.4 billion tons of workable reserves in deposits gation on the Danube, and the spread of steam along the southern foothills of the Mátra and powered fl our mills over the country, from the Bükk mountains (Visonta and Bükkábrány) and 1830s onwards. along the border with Austria (Torony). They During the era of the Austro-Hungarian may prove to be instrumental in diversifying Monarchy, it was dynamic industrialisation and the power supply, rendering it less dependent the rapid expansion of the railway network that on imports. was the main consumer. Subsequently electricity Ores. Prior to World War II the centres generation has become the primary consumer, of ore mining (on the present territory of the and coal production has increased from 2 mil- country) were Gánt (bauxite), Úrkút and Eplény lion tons up to 8 million tons. (manganese), Rudabánya (iron) and Recsk (cop- Following World War II, the coal mining per). During the socialist era, due to the dynamic branch (nationalised by then) was expected to development of the aluminium industry, pro- rise to the challenges presented by enforced so- duction of bauxite steadily increased, reaching cialist industrialisation, with its highly power- nearly 3 million tons in 1980, only to decline intensive activities, and output had grown to considerably aft er 1990. Owing to the deterio- 31.5 million tons by 1964. The oil crisis in 1973 rating geological conditions and high costs of led to the stabilisation of production at around production, bauxite mining as become uncom- an annual 25 million tons until the mid-1980s. petitive on the world market and output has re- Since then, due to the increasing effi ciency of cently dropped down to 0.5 million tons. Bauxite fuels, economic crises and the ineffi ciency of is currently mined at Halimba, Bakonyoszlop, domestic mining, most deep shaft mines have Nyirád and Óbarok. been closed (Figure 119). The bulk of the output Geological reserves worthy of mention of 10 million tons per year is lignite with a low but not presently economical to recover, are calorifi c value, mined opencast. non-ferrous metal ores (copper, zinc, lead, etc.) in the Mátra Mountains (key depos- its at Recsk), and precious metal reefs at Nagybörzsöny, Recsk, Telkibánya and Füzérradvány, locations where gold and silver have been mined for centuries. Uranium ores are known and ex- plored to the west of the Mecsek Mountains (Kővágószőlős), in green sandstone of Upper Perm, though these are unfavourably located for mining. Between 1954 and 1997, 16.4 million tons of ore was extracted and residual re- serves are estimated at 27 million tons. Mining activities were closed in 1997 because of the high costs of production, relative to the price of Mining of highly calorifi c (Liassic) hard uranium on the world markets, and due to the coal in the Mecsek Mountains was terminated generally low competitiveness of the branch. in 2004. Mines producing (Eocene and Miocene) Iron ore deposits are mainly concen- brown coal in the Transdanubian and North trated at Rudabánya, where mining stopped Hungarian Mountains were closed at roughly the in 1985. Manganese is to be found at Úrkút same time. The only exception is Márkushegy at (Transdanubia) with an annual output of merely Pusztavám (North Transdanubia) with a sizeable 0.05 million tons.

142 Hydrocarbons

By the end of the 20th century and over the re- totaled roughly 75,000 km2, at 68 locations and cent past decade, the main issues at the core of nearly 50% of them were under the control of Hungary’s energy production policy were en- MOL (Hungarian Oil and Gas Company). ergy security, economic growth and environ- In terms of the sheer quantity of hydrocar- mental protection. The most important parts of bon resources, they are much less than coal, but government activity have been the exploration, the number of occurrences is not in least. The production, transportation, refi nery, and alloca- most important (and currently still active) oil tion of hydrocarbons among the diff erent sectors and gas fi elds can be found in the southern and of the national economy, including the use of southwestern part of Hungary (Figure 120). raw and refi ned materials for energy generation, Industrial scale oil production began in industrial, and residential uses. Hydrocarbons 1937, when the Eurogasco drilled a well into – as fundamental natural resources – are rela- the Budafa formation. During the same period, tively new actors in the national economy of the Hungarian-American Oil Co. (MAORT) Hungary. Although earlier governments en- also found recoverable quantities of oil in the couraged exploration already at the end of the nearby regions of Lovászi, Hahót and Újfalu. 19th century, the fi rst indications of the existence Afterwards, the production rate steeply in- of gas and oil resources were reported between creased, and output reached 420 Kts in 1940; 1914 and 1919. Aft er the pioneering age, explo- Hungary became a net oil exporter in Europe. ration accelerated the discovery of substantial During, and immediately aft er the disruption hydrocarbon resources in numerous locations in caused by World War II, oil production soon the country, and as a result, the industrial pro- dropped, despite the fact that new oil and gas duction of oil and gas started in the mid-1930s. fi elds were discovered not only in Transdanubia, In recent years, the active area of exploration but also in the Alföld (Great Hungarian Plain).

143 By the mid-1950s, a reservoir bearing Russian crude oil imports arrive exclu- heavy oil was discovered close to . sively via the ‘Druzhba (Friendship) II’ pipe- The spike between 1953 and 1957 in the cumula- line (fi gures 121 and 122). In 2005, the amount tive production diagram indicates its signifi cant of oil import transported through this pipe- contribution to domestic production. The golden line totaled 6.1 million tons. Another inter- age of Hungarian oil production started when the national pipeline (‘Adria’) connects the larg- stacked oil and gas fi eld was discovered at Algyő. est Hungarian refi nery to the oil terminal in Soon the production rate increased to 1,500 Kts Omišalj on the Adriatic Sea (Croatia). In addi- annually and leveled out at 2,000 Kts per annum tion, the 4 Hungarian oil refi neries benefi t from for nearly ten years (1976–1986). Since new fi elds pipeline connections, both amongst one anoth- with similar reserves were not discovered, pro- er and externally with the Slovnaft Refi nery duction gradually declined from 1990 onwards, (Bratislava) in Slovakia. These refi neries and and cumulative domestic oil production contin- ongoing new installations serve the primary ued to remain on the same downward trajectory. goal of ensuring compliance with the require- These days, 207 million tons of geological reserves ments of new EU fuel regulations. exist in Hungarian oil fi elds, although the recov- Hungary’s energy security situation is erable reserve is a mere 19.2 million tons. Hence, strained. Domestic production and reliable im- current resources at the present annual produc- ports are the highest priorities, as the share of tion rate will be exhausted in roughly 23 years. natural gas in the energy mix is 45% which is Due to rapid industrial development, a the highest among all European countries. Thus, dynamic growth in transport and consumption the joint share of crude oil and natural gas repre- of the population, domestic hydrocarbon pro- sents more than two-thirds of the Total Primary duction has been unable to meet demand since Energy Supply (TPES). Until 2020, the share of the 1960s. In 1965, imported crude oil already natural gas will probably increase by an addi- accounted for 50% within total consumption tional 24.5% (up to 15.6 Mtoe), and hence, crude (Figure 121). Since then, the import dependen- oil and natural gas will remain indispensable cy of the country has gradually increased and and a determining factor in ensuring ongoing reached 86% (total consumption was 8,357 mil- energy supplies. lion tons and domestic production 1,193 mil- The exploration of natural gas coincided lion tons in 2007). The share of oil in the Total with the search for crude oil, and its industrial Final energy Consumption (TFC) fi gure stood scale production began in 1937, but the produc- at 31.9% in 2004. The responsible organisation tion rate remained very low until 1960. In the forecast a greater than 2% annual growth in oil mid-1960s, however, gas production rapidly in- demand, although domestic production is ex- creased and it reached its maximum less than pected to have by 2030 (output of slightly above ten years later, with an annual production rate of 0.5 million tons per annum is predicted). almost 7 Mtoe (7 Gm3). The majority came from large gas reservoirs in the southern part of the Alföld (Hajdúszoboszló and Algyő), whilst smaller ex- traction enterprises operated in Transdanubia. As shown in Figure 123, this period of abundance end- ed in 1990 and production began to considerably decline. Recently total gas production output is fl uctuat- ing around 2.6 Mtoe (2.6 Gm3), but a further drop in production is an- ticipated. Total natural gas resourc- es amount to 5,307 Mtoe, of which 3,355 Mtoe is recoverable; remain- ing reserves are expected to last more than 50 years (including the unconventional Makó deposit).

144 145 potentially 47.5 Mm3/d, additional capacity is needed to meet future demand. Another element of a reli- able and safe gas supply network is a high quality and well con- nected international and domestic pipeline network. The prime pipeline connects Hungary with Ukraine, Austria, and Serbia (fi gures 120 and 122). The Ukrainian pipeline is the main import route with a capacity of 10 Gm3 per annum, while the Austrian branch (with capacity of 4.4 Gm3 per annum) is essentially only used to balance the system during times of high demand. Since the government has an ambitious Since 1973, Hungary has no longer been goal to diversify imports, further international self-suffi cient in its gas supply. The country cur- connections are currently under discussion, in- rently relies on substantial imports, exclusively cluding the Blue/South Stream and Nabucco from Russia. Total imports reached 8.54 Mtoe pipelines (each with 30 Gm3 per annum capacity) (8.54 Gm3) in 2007. Roughly 20% of that volume and the construction of an LNG terminal on the was supplied by new companies (Gaz de France, Croatian island of Krk. The domestic medium- Ruhrgas and EMFESZ), but the gas itself is en- and low-pressure pipeline network provides tirely Russian in origin. Import dependency al- reliable access for industry and all residential ready exceeds 80% and this is set to increase to areas. Network construction began in 1963 and 85% by 2020, parallel with declining domestic has been gradually improved ever since, reach- gas production. At present more than 3.5 million ing a length of 5,194 km in 2005 and includes Hungarian households are connected to the low- fi ve high capacity gas-turbine compressor sta- pressure gas network, domestic household con- tions. Unfortunately the average age of the sys- sumption occupying a share of over 80%, which tem is over 25 years, a result of which continu- contributes to the very high seasonal variation in ous inspection, maintenance, and replacement demand. Industry consumes relatively litt le nat- are everyday tasks of network operators. ural gas and the chemical (and other) industries In three locations (Répcelak, Hahót and account for only 10% of total gas consumption, Budafa), Hungary has relatively large geologi- whilst power plants used an additional 15%. cal reserves of good quality carbon dioxide. In Only the latt er consumer could act as a buff er 2007, the reserves were estimated to be 46.3 mil- in the event of a supply interruption. lion tons, and its recoverable amount was 30.7 Based on an analysis of production, im- million tons. Annual production is currently port, and consumption statistics, one can con- about 150 Mm3 per annum; the food industry clude that it is indispensable to increase the and health-care sector use the majority of this. buff er (underground gas storage) capacity and Previously, the abundant natural supplies pro- to diversify import sources by extending the vided an easy option of using CO2 for enhancing high-pressure, international pipeline network. oil recovery, increasing displacement effi ciency Underground storage plays a very important and improving gravity drainage in the role in Hungary, overcoming seasonal consump- and Nagylengyel oil reservoirs. tion fl uctuation and allowing the country to Extensive use of crude oil and natural gas cope with any crises in the transport network. in Hungary and the high import dependency Currently, fi ve underground storage facilities of the country have turned the energy sector’s operate in the country with 3.38 Gm3 mobile att ention to unconventional hydrocarbons. The and 4.64 Gm3 cushion gas capacity (Figure 120). Hungarian potential of methane captured by coal Although their maximum release in winter is seams is promising. In the Mecsek Mountains,

146 the coal seams may contain great quantities of 600 Gm3, but a later report put the fi gure at methane. The joint project of the Hungarian and 1,200 Gm3. The offi cial announcement aroused American geological surveys discovered that at unprecedented att ention, since discoveries of a minimum 140–170 Gm3 (and by optimistic as- this magnitude would make Hungary not only sessments 240–280 Gm3) of methane may exist self-suffi cient in natural gas, but turn it into a net in the coal left behind in disused mines. There is exporter in Europe. One can conclude that such a good chance in the future of recovering 30–50 reserves have enormous energy and economic 3 Gm of methane and a similar proportion of CO2 potentials as their total resource could exceed from the fl ue gases of power stations. several times over, the amount of conventional Recently a foreign company reported that natural gas in Hungarian reservoirs. The ex- whilst exploring deep geological formations in pression, “what is unconventional today, will the Makó trough, huge unconventional gas re- be conventional tomorrow” leads us to predict sources were discovered between 4,000 and 6,500 that unconventional hydrocarbons will be avail- m. The Basin Concentrated Gas Accumulation able to all sectors of the country at a reasonable (BCGA) was fi rst estimated to be around 400– price in the decades to come.

Energy Supply

Development Trends

Coalfi elds served as the energy source for the growing rapidly in the 1960s, but due to the oil socialist industrialisation that was gathering price explosions of 1973 and 1979, eff orts were momentum in the early 1950s (Figure 124). Most also made to utilise domestic coal reserves (the of the factories involved in the processing of so called Eocene and Liassic programmes) in raw materials and manufacturing (e.g. iron and the 1970s and 80s. Eff orts were also made to fi nd steel, chemicals, construction materials, machin- greater uses for natural gas, to increase the im- ery industries, etc.) were spatially confi ned to port of electricity, and to create an option for the coal mining regions. Following the arrival the use of nuclear power (Paks Nuclear Power of cheap crude oil imported from the USSR, the Plant). A drop in energy consumption occurred share of hydrocarbons in the energy sector was aft er the regime change, due to the economic collapse experienced by all Eastern Bloc coun- tries and the closure of a mass of uncompetitive and energy-intensive industrial sites. Declines eventually stabilised total consumption at an annual level of approximately 1,100 PJ. A reduction in the use of domes- tic resources resulted in a parallel rise in the ratio of imported power, from 50.7% to 67% of energy con- sumption, between 1990 and 2007. Simultaneously, industry’s share of consumption diminished, with a concurrent growth in residential and local public use. Faced with such circumstanc- es, the current priorities of govern-

147 ment energy policy when addressing issues of re- use of lignite reserves in the energy balance, a liability and sustainability of the energy supply further emphasis on the long-term use of nucle- are: energy saving and effi ciency improvements, ar power, increasing participation of renewable reducing dependency on imports and natural energy sources and, fi nally, closer att ention paid gas, diversifi cation of import sources, a higher to environmental issues.

Electricity

The first thermal power station for the gen- 125). The power stations using lignite and eration of public electricity began working in brown coal are located near their fuel deposits Temesvár (Timişoara, today Romania) in 1884. (e.g. Visonta, Oroszlány and ), the oth- Later several plants were built separately from ers using hydrocarbons can be found adjacent to one another, which supplied electricity to two gas and oil pipelines and near their largest con- fi ft hs of sett lements by 1945. The fi rst high volt- sumers (e.g. Százhalombatt a, Tiszaújváros and age (100 kV) transmission line was opened be- Budapest). Additionally, 210 smaller electricity tween Budapest and the Bánhida Power Plant producers and many autoproducers are operat- (Tatabánya) in 1932. Following World War II, ing, which are not part of the Hungarian nation- the capacities of these thermal power stations al grid (e.g. BorsodChem in and rapidly increased and the network was extended Dunapack in Budapest). The installed capacity to meet the considerable growth in demand for of the biggest hydroelectric power plants is be- electricity. All sett lements had been connected to low 30 MW (Kisköre and Tiszalök). The largest the electricity grid by 1960. Important changes in power stations using biomass as their fuel are the fuel supply of the hitherto coal-fi red thermal in Pécs (Pannon Green Ltd) and in Ajka (Bakony power plants were brought about by the intro- Bioenergy Ltd). The ‘FKFV–HUHA’ power sta- duction of the hydrocarbon-fuelled Dunamenti tion located in Budapest, is fuelled with mu- (Százhalombatta) and Tisza II (Leninváros/ nicipal waste and can generate 24 MW. Wind Tiszaújváros) power stations in the 1970s, by farms (10–24 MW) were recently established in Paks Nuclear Power Plant (NPP, commencing North-West Transdanubia, owing to favourable operation in the 1980s), later by the widespread climatic conditions (e.g. Levél, Sopronkövesd, exploitation of gas turbines, biofuels (biomass) Nagylózs and Mosonmagyaróvár). and the harnessing of wind power over the past The Paks nuclear power plant makes an two decades. Such changes are also visible in the important contribution to the safe, cheap and proportions of energy sources used for electric- clean energy supply of Hungary. Paks NPP is ity generation between 1990 and 2007. The share located in the central part of Hungary about of brown and hard coal decreased from 22.2% to three kilometres south of the town of Paks on 3.3%, parallel with an increase of lignite (from the west bank of the River Danube. There are 9.5% to 15.2%) and natural gas (from 16.3% four WWER-440/V213 type reactor units at the to 37.9%). The contribution of nuclear energy site. Construction of the plant commenced in (36.8%) has remained – similar to that of natural 1974 and was completed in 1987, represent- gas – extremely important. ing the largest industrial project of 20th cen- The total generating capacity of domestic tury Hungary. The power station is owned power plants is 9,139.8 MW, out of which 85.5% is by the MVM (Hungarian Power Company), produced by the major power installations (over together with its parent company State Asset 50 MW). Besides Paks NPP the largest power Management Ltd. (Table 32). stations operate in Central and North Hungary At Paks NPP a comprehensive programme and North Transdanubia (e.g. Százhalombatt a, of safety upgrades have been implemented, Visonta, Tiszaújváros, Budapest, Oroszlány, which resulted in a decrease to the annual occur- Tiszapalkonya and Berente) (Table 31, Figure rence of core damage; since reduced to a level

148 Table 31. Major power plants (2008) Name Sett lement Installed capacity (MW) Fuel Paks NPP Paks 1,940.0 nuclear Dunamenti II.F, G1, G2 Százhalombatt a 1,736.0 hydrocarbon Mátrai Visonta 950.0 coal, biomass AES Tisza Tiszaújváros 900.0 hydrocarbon Csepel GT Budapest 396.0 hydrocarbon Oroszlányi Oroszlány 240.0 coal Tiszapalkonyai Tiszapalkonya 200.0 coal, biomass Kelenföldi Budapest 185.9 hydrocarbon Lőrinci GT Lőrinci 170.0 fuel oil Borsodi Berente 136.9 coal, biomass Pannon Pécs 132.5 hydrocarbon Sajószöged GT Sajószöged 120.0 fuel oil Litéri GT Litér 120.0 fuel oil Újpesti Budapest 110.0 hydrocarbon Kispesti Budapest 110.0 hydrocarbon Ajkai Ajka 101.6 coal Bánhidai Tatabánya 100.0 hydrocarbon Debrecen GT Debrecen 95.0 hydrocarbon ISD Power Dunaújváros 69.0 hydrocarbon Source: www.mavir.hu

of 10-5/a. Operation of the plant is very smooth The capacity of the plant has been ex- and there were no reactor scrams in 2008. An panded, fi rst through an increase in thermal ef- incident occurred in 2003 at Unit 2, which re- fi ciency, and more recently by an 8% increase in sulted in damage to the fuel assemblies inside the thermal power of the reactor, implemented a cleaning tank. The incident was unrelated to via the employment of modernised fuel as- the safety of the basic technology of Unit 2 and semblies and some minor modifi cations, all the there was no environmental harm. while safety margins being maintained.

149 Table 32. Basic technical data of the Paks Nuclear Power Plant Capacity in 2008, Net capacity at start of Net capacity before recent Unit Connected to the grid MW operation, MW power up-rate MW Net Gross 1 28.12.1982 410 437 470 500 2 06.09.1984 425 441 473 500 3 28.09.1986 427 433 443 470 4 16.08.1987 425 444 473 500 Source: www.atomeromu.hu

In 2008, the NPP produced 14,814 GWh, at Paks is 30 years, expiring between 2012 and contributing a 37.2% share to the national elec- 2017. Starting with a feasibility study in 2000, tricity output. The cumulative load factor of systematic engineering work has started on se- the plant is 84.39%. The cheapest electricity in cure an extension to their operation life, by an Hungary is generated at Paks NPP, and since additional 20 years. Environmental authorisa- a doubling in fuel prices will cause less than a tion was received back in 2006. In 2008, plans 20% increase in production costs, the cost base for its extension were submitt ed to regulatory is very stable. Two years worth of nuclear fuel is scrutiny and the formal licensing for the exten- stockpiled, to ensure the plant’s ongoing opera- sion for Unit 1 is anticipated to be received by tion in the event of short-term disturbances in the end of 2011, and later for other units. the fuel markets. Alternative fuel supply might An option for the development of be ensured. Hungary’s power industry with a view to the Paks NPP has practically no greenhouse longer perspective, is the construction of a new gas emissions. Any replacement technology plant at the Paks site, with capacity twice 1,000 would result in greater ‘whole-life’ emissions, to 1,600 MW between 2020 and 2025. The new e.g. an equivalent power plant to Paks NPP, run- plant would secure the power supply and make ning on natural gas, will emit more than 5 mil- an essential contribution to electricity generation lion tons of CO2 annually. The ongoing operation for a minimum of 60 years, at competitive prices, of Paks NPP causes a negligible environmental with practically zero emissions and negligible eff ect with respect to radioactive releases. In environmental impact. The new project would 2008 the plant used 0.25% of its release limits. stimulate the development of the scientifi c, engi- The extra dose relevant to a critical group of the neering and construction industries in Hungary, public due to plant emission was 58 nSv in 2008, creating thousands of jobs for more than a dec- equivalent to only 10 minutes worth of expo- ade. The experience and skills for its safe op- sure to natural background radiation. The sole eration are already present in the country; the environmental burden results from the release legal framework is naturally pre-existing for the of cooling water into the Danube. Results from regulatory oversight of the new plant. The Paks the environmental monitoring programme that proposals have been thoroughly investigated, analysed the environmental impact of the pro- the site already possesses the necessary infra- longed operation of Paks NPP, showed no ad- structure and off ers opportunities to synergise verse eff ects on the environment aft er 20 years with that already established. of operation. For many years, the public acceptance lev- Nuclear waste generated by the plant, in- el of Paks NPP has been over 70%. In November cluding radioactive waste, is collected, classifi ed 2005, the Hungarian Parliament endorsed plans and contained. The facilities necessary for the to extend the life expectancy of units 1–4 at Paks processing and storage of solid and liquid ra- by 20 years. Construction of a new plant on the dioactive waste are available at the plant. Spent Paks site is also supported by the public and in fuel, aft er fi ve years of cooling at the plant, is March 2009, the Hungarian Parliament gave its stored for 50 years in the intermediate on-site approval in principle for the preparation of the storage facility. new project. One of the options for ensuring the mid- Foreign investors own 38.9% of compa- term ongoing reliable supply of clean and cheap nies operating power plants (licence holders in energy, is an extension to the operational life electricity generation) of 50 MW and higher. Out of Paks NPP. The life expectancy of the units of them the Dunamenti, Mátrai and AES Tisza

150 Power Plant Ltd are the most important. MVM ly directed to Croatia (6,536 GWh) and Serbia Power Trade Zrt. (Hungarian Power Company) (3,430 GWh). and MAVIR Zrt. (Hungarian Transmission Hungary (together with Poland, Slovakia, System Operating Company) are exclusively in Romania and Cyprus) became a full member the hands of Hungarian investors. of the ETSO (European Transmission System Electricity production in the country in- Operators) alliance in 2004, which supplies creased from 1.4 TWh in 1938 to 28.4 TWh in more than 490 million people with electricity 1990 and further to 39.9 TWh in 2007. However, through high voltage transmission lines totaling this amount is not suffi cient for the total elec- 290,000 km in length. ETSO, as an international tricity consumption of the country (54.3 TWh association, incorporates four regional organi- in 2007), which includes domestic consump- sations (NORDEL, TSOI, UCTE and UKTSOA) tion, private power plants, network and trans- which are the result of European eff orts to max- former losses, as well as electricity exports. The imise the reliability of the electricity system and Hungarian power network has been a net im- the quality of supply, in order to optimise the porter of power since 1940, the share of which in use of primary energy and capacity resources the total sources of electricity reached 26.3% in (Figure 126). The Hungarian power generation 2007. Since 2005, electricity transit towards the industry joined the largest organisation – UCTE Balkans has played a signifi cant role in the in- (Union for the Co-ordination of Transmission crease of imports, and even more of export. The of Electricity) – in 1995, which subsequently electricity import of 14,278 GWh (2007) arrives also accepted MVM Zrt (in 1999) and MAVIR mainly from Slovakia (9,058 GWh), Ukraine Zrt (in 2001). In UCTE, Hungary became part (3,915 GWh) and Austria (1,455 GWh), whilst of North control block (RWE, with the account- export deliveries (10,291 GWh, 2007) are most- ing centre in Brauweiler, Germany). From 1 July

151 2009 on the ATSOI, BALTSO, ETSO, NORDEL, Hungária Zrt. is a subsidiary of the multina- UCTE and UKTSOA has been fully integrated tional E.ON Energie (Europe’s largest private into the new established ENTSO-E (European supplier of electricity), and is a leader in the Network of Transmission System Operators for country’s power supply, with responsibility Electricity). for the provision of electricity to Transdanubia The link between producers and consum- and the North Alföld. 53% of electricity sold ers is established through the transmission and was consumed in the highly developed re- distribution network, the length of which is gions of the country, supplied by ELMÜ Nyrt. 161,629 km (2007). More than two thirds of the (Budapest area) and E.ON ÉDÁSZ Zrt. (North system was constructed aft er 1955. The fi rst 220 Transdanubia) (Figure 125). kV transmission line started operating in 1960, An overwhelming proportion of the whilst the fi rst 400 kV line was launched in 1970; Hungarian electricity infrastructure is obsolete a single 750 kV line started operating between being more than 30–50 years old. The average the Ukrainian Vinnitsia and the Hungarian age of large power plants is 24 years. According Albertirsa in 1978. The length of high voltage to the opinion of reliable sector-based profes- transmission lines is 3,455 km, of which 8% are sionals, an enlargement of 4,500–6,000 MW in the 750 kV category and 58% in the 400 kV would be necessary in the forthcoming 10–15 category. years. With respect to technological and envi- In 2007, nearly 28 TWh of electricity was ronmental considerations, and in order to en- generated for domestic consumers by the elec- sure reliability in the power supply, such devel- tricity supply companies. Since privatisation opment should be primarily reliant on nuclear in 1995 and 1996, 95.1% of electricity distribu- fuel or lignites. There are also opportunities for tors and public utility suppliers are in the hands an increasing contribution of hydroelectricity of foreign (mostly German) investors. E.ON and other renewable sources.

152