National Renewable Energy Action Plan (NREAP) for 2010-2020

This action plan constitutes the basis for action on resource efficiency and sustainability. The strategic objective of the EU stipulates a 13% increase in renewable energy capacity by 2020. The NREAP supersedes and overwrites the preceding target and renewable energy policy, and aims to increase renewable energy within the total gross energy consumption by 14.65% by 2020. In addition, there is a target of renewable energy accounting for 4.3% of gross final consumption of energy in 2005.

The NREAP identifies significant potential in renewable energy sources, but many of them face environmental concerns as barriers and funding limitation. Some 16-17MW of hydropower could realistically be installed by 2020, but environmental concerns are limiting factors. Wind energy potential reaches several thousand MW, while also considered environmentally friendly, but it needs economic justification as it is highly intermittent. Geothermal energy potential in Hungary exceeds the global average but lack of funding is a significant barrier. Solar energy potential amounts to several tens of thousands of MW, but the most significant limiting factor is large investment cost. Heat pumps have theoretical potential of several hundred PJ, but face funding limitations. Biogas production potential in theory could exceed as much as 20% of energy demand for 2020. Biofuels have significant potential, but are limited by the financial burden of replacing current vehicles. The target trajectory of renewable energy by end use in 2020 is to increase to: 18.9% of heating and cooling; 10.9% of electricity; and 10% of transport.

The NREAP provides that the following will be financed: green economy development, research and development, adaptation to use of green electricity, biofuel benefits, tariffs and tax issues. It also aims to formulate incentives through regulatory and comprehensive programmes on sustainable energy management, renewable energy, simplification of authorisation procedures, establishment of regional energy agencies, and review of energy certification procedures for buildings. Social measures such as employment, national and regional training, social awareness-raising and network of energy experts are among the planned measures outlined in the action plan. Specific laws and programmes in question and associated details are included at the end of the NREAP.