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Structural Funds 2007-2013

2007-13 Overview/Evaluation

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Operational Programme (OP) in Hungary in 2007-2013:

The Environment and Energy Operational Program (EEOP, in Hungarian KEOP) is one of the 15 Operative Programs of the 2007-2013 New Hungarian Development Plan (In Hungarian ÚMFT), which relates to the EU National Strategic Reference Framework (In Hungarian, NSRK).

In this period Hungary gets 22.4 billion EUR from the Structural Funds, which is three times more money/year for the development of the projects than in 2004-2006. The Hungarian state gives 15% to this, which amounts the total to about 26.2 billion EUR. Above that Hungary gets 3.4 billion EUR development source from the Guidance Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) and the Financial Instrument for Fisheries Guidance (FIFG). From this, 4.9 billion EUR is allocated for KEOP including the 15% Hungarian state's co-financing. In this new period of 2007-2013, the procedures for all operation programs were made to be simpler and quicker, than it was for the previous period of 2004-06. To help the procedures, online administration was introduced, where the applicants can electronically make an application, ask payment, as well as follow the application.

In the period of 2007-2013 there are 2 main energy priority areas with a total amount of 407 million EUR:

Priority point: 4 (KEOP 4.1): Renewable Energy: 253 million EUR (5.15 % of KEOP)

Priority: 5. (KEOP 5.1 and 5.2) Energy Efficiency: 154 million EUR (3.14 % of KEOP)


The total amount of support for the 2007-2008 period was 23.5 billion HUF (about 88 million EUR). It was divided into three main categories:

KEOP-2007-4.1. Heat- and/or electricity producing from renewable energy technologies with a total amount of EU subsidy 13.26 billion HUF (about 51 million EUR) and the national contribution is 2,623,598,030 HUF (about 9.8 million EUR), which is 19.78% of the KEOP.
applications:123 projects
financed: 26 projects

KEOP-2007-5.1. Increasing of the energy efficiency with a total amount of EU subsidy 8.76 billion HUF (about 32.8 million EUR) and the national contribution is 818,638,494 HUF (about 3 million EUR), which is 9.3% of the KEOP
applications:108 projects
financed: 17 projects

KEOP-2007-5.2. Third party financing with a total amount of EU subsidy 1.84 billion HUF (about 6.9 million EUR) and the national contribution is 409,262,109 HUF (about 1.5 million EUR), which is 22.24% of the KEOP
applications:62 projects
financed: 55 projects

Until January 2009, the total amount project applications were 293, from which the financed projects are 98.

The total amount of support for the 2009-2010 period is 34 billion HUF (about 127.3 million EUR).

The projects are in 12 different categories:

KEOP-4 Renewable energy utilization
KEOP-2009-4.2.0/A – Local heat and cooling supply from renewable sources
KEOP-2009-4.2.0/B – Local heat and cooling supply from renewable sources with a total amount of EU subsidy 6 billion HUF (about 22.4 million EUR).
KEOP-2009-4.3.0 and KEOP-2009-7.4.3.0 – Development of an area based on renewable energy technologies
KEOP-2009-4.4.0 – Electricity-, combined heat and electricity and bio methane production from renewable sources with a total amount of EU subsidy 10 billion HUF (about 37.4 million EUR).
KEOP-2009-4.6.0 – Support of biofuel plants with medium and big capacity
KEOP-2010-4.7.0 – Subsidy of the preparing and developing activities of the geothermal based heat and electricity producing projects

KEOP-5 Energy-efficiency
KEOP-2009-5.2.0/A – Third party financing
KEOP-2009-5.2.0/B – Third party financing (Building energetic tenders combined with the utilization of renewable energy technologies with a total amount of EU subsidy 4 billion HUF (about 15 million EUR).
KEOP-2009-5.3.0/A – Building energetic developing and lighting modernisation
KEOP-2009-5.3.0/B Building energetic developing combined with renewable energy utilization with a total amount of EU subsidy 6 billion HUF (about 22.4 million EUR).
KEOP-2009-5.4.0 – Energetic modernisation of the district-heating sector with a total amount of EU subsidy 8 billion HUF (about 30 million EUR).
KEOP-2009-7.4.0 – Rationalization of the energy systems of the Health Centers

Distribution of the funding for the utilization of the different renewable energy technologies until May 2010 Project table (pdf file 142 kB).

RE technology
Distribution
Projects
Solar
5,7%
50
Solid biomass
43.7%
31
Biogas producing and consuming
33.3%
8
Hydro
0,3%
4
Geothermal
17%
16
Total amount of subsidy for Renewable Energy
42,448,319 EUR

Source: Energy Center Hungary.

Distribution of the funding for the Energy Efficiency until May 2010:

Projects
EUR
KEOP 5.1.0 Energy Efficiency
7,528,655
KEOP 5.2.0 Third Party Financing
1,614,179
KEOP 5.2.0/A/09 Third Party Financing
2,591,865
KEOP 5.3.0/A/09 Development of the Energetic of the Buildings
24,438,794
KEOP 5.3.0/B/09 Development of the Energetic of the Buildings combined with Utilization of the Renewable Energy Systems
3,790,031
KEOP 5.4.0/09 Modernisation of the District Heating System
4,054,965
Total amount of subsidy for Energy Efficiency 44,018,489

Source: Compiled from NFU (Hungarian Development Agency / Nemzeti Fejlesztési Ügynökség): www.nfu.hu .

Besides, energy projects could receive funding from the budget for preparation of bigger projects (KEOP 7) and promotion projects for sustainable use, and E-environment.(KEOP 6)
.


The total amount of KEOP support for Hungary and the utilization of the money until May 2010:


Total Amount of KEOP
(billion EUR)
Amount RE and EE in KEOP
(billion EUR)
2007-2013
22.4
0.407
Until May 2010
3.5
0.086


Source: www.nfu.hu

Hungary has all in all 407 million EUR for the energy investments in the period of 2007-2013, from which Hungary had already used about 86 million EUR, which is insignificant compared to the total available. If the intensity of the investments will increase with the present pace till 2013 and 2020 this support is enough to reach the 13% in the final energy consumption.

Our opinion is that Hungary should make an effort to spend more money on the energy sector because the amount of the tenderers are growing year by year and Hungary gets the opportunity to increase our final renewable energy supply more than the undertaking 13%. Our natural resources also enable us to develop the renewable energy capacity, as Hungary's attainable socio-economic wind energy potential alone is around 7000 MW by 2020.

More information about the system of the subsidy in Hungary:
(pdf file 538 kB) Power point presentation by Energy Center Hungary, 2009 June (in Hungarian). Source:
(www.energiakozpont.hu)

The description of KEOP: June 2007, 166 pp., (pdf file 1,3 MB) by Government of the Republic of Hungary.
NFU started an online administration and a search machine, where you can search according to regions and programs. link

More information: Operational Programs of the New National Development Plan.


The Following Programs are Financing from the Budget of the National Government

Support Scheme for Private People on Energy Conservation
(NEP- Nemzeti Energiatakarékossági Program)

Administered by "Energy Center" Hungary (www.energiakozpont.hu) "Energy Centre" Energy Efficiency, Environment and Energy Information Agency Non-Profit Company is owned by the Ministry of Transport, Telecommunication and Energy and it is the national energy agency responsible for the improvement of the energy efficiency and renewable energy utilization.

Support Scheme for Private People on Energy
Conservation
(NEP-2009):

Description and supported projects in 2009 can be seen at: Energy Center Hungary's web site NEP. It is possible to see the applicants own application, but it is not possible to see an overview of all the applications and funding in 2009.

The applications were possible from August 1 - August 31, 2009.
There were 3077 applications until August 27, 2009. The budget was 1,535 million HUF (about 5.7 million EUR).
There was possibility for credit for the investment part.

There were 4 categories:
NEP-2009-1
- changing of windows and doors for flats built before 1994, and after insulation (Support: max 555,000 HUF (about 2,000 EUR) per flat, 33% of investment)

NEP-2009-2 - modernization of heating an warm water system (Support: max 630,000 HUF/flat, 30% of investment)

NEP-2009-3 isolation for buildings built before 1994. (Support: max 630,000 HUF/flat, 20% of investment)

NEP-2009-4 - renewable energy: (Support 1.47 million HUF/flat 35% of investment)

Support Scheme for Private People on Energy Conservation (NEP-2008):

Description and supported projects in 2008 could be seen at: Energy Center Hungary's web site NEP 2008. The material was moved from the web site in 2009.

The applications were possible from April 14, 2008. From August 2008 the funding support got somewhat bigger.

Original project support scheme was in 5 categories:
- changing of windows and doors (Support: max 264,000 HUF / 1000EUR per flat, 15% of investment)
- modernization of heating an warm water system (Support: max 400,000 HUF/flat, 20% of investment)
- building insulation from outside (Support: max 400,000 HUF/flat, 20% of investment)
- complex energy conservation investment (Support: max 720,000 HUF, 18% of investment)
- renewable energy: (Support 1 million HUF/flat 25% of investment)

The new project scheme from August 15, 2008 in the 5 categories:
- changing of windows and doors (Support: max 352,000 HUF per flat, 20% of investment)
- modernization of heating an warm water system (Support: max 500,000 HUF per flat, 25% of investment)
- building insulation from outside (Support: max 500,000 HUF per flat, 25% of investment)
- complex energy conservation investment (Support: max 1.2 million HUF, 30% of investment)
- renewable energy: (Support 1.2 million HUF per flat 30% of investment)

Source of update: Modification (pdf file on the Energy Centre's new web site)

More information: Energy Centre and Energy Centre (new web site).
Both web sites are in Hungarian. English description is not available (September 2008).


Support Scheme for Private People on Energy Conservation (NEP-2007):

Description and supported projects in 2007 could be seen at: the web site of the Energy Center Hungary NEP 2007, but it was moved from the website in 2009.
The applications were possible from April 10, 2007.
The allocated available fund was 2.4 milliard HUF (about 9 million EUR).
Each project support was max 15 % of investment and max 265,000 HUF (about 1,000 EUR).
There were mainly 2 categories: changing of windows and doors, and installation of solar collectors.

About 5,000 projects were supported. This covers about 3,600 flats, and 1300 block of flats. The list of all supported projects can be downloaded from the Energy Center's website.

There was also a scheme for receiving credit in a framework of 16 milliard HUF.

More information: Energy Center Hungary .