In an interview published by HVG on 7 November, the BCE REKK senior research fellow did not identify new gas-fired capacity as the right response. In his view, it would be more sensible for Hungary not to build any new gas-fired power stations.
Where does Hungary’s gas go?
Hungary consumes 8–8.5 billion cubic metres of natural gas each year, with households accounting for roughly one-third of the total. Between 1.5 and 2 billion cubic metres — about one-fifth of annual consumption — is used to generate electricity. That figure also includes combined heat and power plants, which produce both electricity and heat for district heating networks.
Mezősi expects short-term gas savings to come mainly from the residential sector rather than power generation. Gas consumption by electricity-generating plants has so far remained broadly unchanged, aside from minor fluctuations.
Gas-fired plants perform several roles. They can generate electricity or heat, produce the two together, or serve as reserve capacity that the system operator calls on when needed.
Combined heat and power plants generate roughly twice as much electricity in winter as they do during other parts of the year. They also supply district heating during the colder months, when solar generation is considerably lower.
Solar and storage reshape the reserve market
Gas-fired power stations are more efficient than conventional fossil-fuel plants, but they are facing growing competition in the reserve market. According to the HVG interview, cheaper solar power and electricity storage have begun to displace them in this segment.
For much of the year, solar plants can provide system reserves at a far lower cost than gas-fired units. The change has affected gas-plant revenues: reserve market prices have fallen to roughly one-third of their previous level over the past year and a half.
The power stations at Százhalombatta and Gönyű previously earned substantial revenue from this market. Their operators are now looking for ways to keep the ageing equipment profitable. The Gönyű plant is 15 years old, yet it remains Hungary’s youngest gas-fired power station.
Source: HVG
