The exploitation of renewable energies is supported by both the domestic and the EU energy policy Both the Hungarian domestic and the EU energy policy support the utilization of renewable, geothermal energy in order to protect the environment and the nature, to supply safe energy to the customers, to reduce the utilization of primary energy […]
The exploitation of renewable energies is supported by both the domestic and the EU energy policy Both the Hungarian domestic and the EU energy policy support the utilization of renewable, geothermal energy in order to protect the environment and the nature, to supply safe energy to the customers, to reduce the utilization of primary energy resources and to enhance the diversification of the energy supplies.
Through the economic utilization of the geothermal resources the municipalities can directly improve the quality of the life of the local population. This improvement can be achieved, on the one hand, directly, as a result of the development of the district heating systems and, on the other hand, indirectly, as the enhanced economic activity results in more tax income. The dependence of the municipality on fossil energy can be significantly decreased, while the cost of the residential district heating and the hot water supply may become virtually independent of the increasing natural gas prices. It leads to another positive effect, namely, a more favourable social situation in the local community. The utilization of geothermal resources provides continuous income to the budget of the municipality through not only the tax revenues, but also through the profit of the joint company partly owned by the municipality. Moreover, the project provides a possibility for the municipal authorities to apply for EU development funds. The first and utmost sign of improvement, of course, is the better air quality in the given area. Air will be immediately cleaner and healthier if the local carbon dioxin emission significantly decreases. The geothermal projects also target a long-term objective: the growing use of renewable energy will inevitably result in the decrease of the high level of gas consumption of Hungary.
In the initial phase of the project the most important task is to collect information. The method and the technology used for the information collection are unique, they have never been used before in Europe. The data provided by the measurements are sent to be evaluated in the US. The applied magnetotelluric and gravitation measurement techniques do not require drilling, thus the environment remains untouched.
At the beginning of the project it is equally important to start the licensing procedures with the necessary authorities and to make other legal steps in due time. In addition to this it is essential to examine what public funds can be available for the project, and what requirements are included in the possible tender. On the basis of the data obtained and processed in the course of the first phase a detailed geological analysis is completed. It can clearly indicate what regions are the most promising for drilling, and it can define the 3-D coordinates of the well-systems. But, as a matter of fact, the basic criterion is always the geological and hydrogeological adequacy of the area. It is also important to clarify the legal and administrative status of the designated area, and to examine the existing local infrastructure (possible connection to the grid, the opportunity to purchase the site, the availability of cooling water, the distance from the heating centre in use).
If the geological analysis made in the framework of the cooperation agreement states that an effectively operating power and/or heating plant can be built, Pannergy and the local municipality establish a project company: a limited company with HUF 100 millions share capital. Pannergy and the co-financing European banks (EIB, EBRD) suggest that the ownership of the municipality be 10%. Upon the establishment of the project company the municipality is required to pay HUF 10 million which will be lent by PannErgy to the municipalities as a maturity of 5 years without interest or any costs to be paid. It is stipulated in the agreement that the municipality should use its capital bonus, as its dividend to repay its credit facility. The agreement also contains a matrix, which indicates the municipality’s possible payment depending on the capacity of the geothermal power plant to be built and the size of the possible EU fund.
The aim of PannErgy and the municipality is the establishment of an electricity or heat energy power generation plant by the jointly established or operated limited company and the sale of the produced heat energy.
According to the planned structure in case of fluid between 130 and 180 Celsius, electricity power plant can be built in the first step applying the Kalina technology, which is used in several countries all over the world.
In the second step, below 130 Celsius the heating energy can be used for district heating or in the industry or heating and providing heat water to swimming pools.
