PannErgy: Climate Considerations

The second quarter production report by the Hungarian geothermal energy firm PannErgy says the company pays special attention to climate change issues with its renewable energy projects.

Hungary has set the objective of reducing its greenhouse gas emissions by at least 40% below 1990 levels by 2030, while the rate of renewable energy in gross final energy consumption will be at least 21%. The report says PannErgy Group runs its renewable energy projects in strict accordance with the national ambition to make the district heating sector greener and more competitive. Through its geothermal projects, the Company supports Hungary’s climate policy and the objectives laid down in the National Energy Strategy 2030 document by promoting sustainability.

The PannErgy Group’s projects contributed to the efforts made to preserve a more livable environment by CO2 emission cuts. The reduction amounted to 15,835 tons, while the total aggregate amount of greenhouse gas emission saved by the PannErgy Group so far amounts to 501,791 tons.

One of the evident effects of climate change in Hungary appears in the form of frequent volatile and extreme changes in weather conditions, including ambient temperatures, and a rise of the average temperature of the winter months from the historically cold, stable sub-zero range to markedly over the freezing point. These changes are not expected to have an adverse impact on the output of geothermal heat generation; indeed, perspectives of input into district heating systems are favorable as an average over multiple years. The reason for this is – as is noted in this report – the fact that daily geothermal heat sales are ideal in the 2-8 C temperature range during the heating season. At the same time, the potential decrease in the demand for heat during the transitional seasons may be compensated, indeed, overcompensated by the growth in the potential of the increasingly mild winter months.

The demand for energy in the large district heating systems supplied by the PannErgy Group is far greater than the amount of geothermal energy that can be fed into those systems.
Accordingly, any change in the demand for heat in those heating systems stemming from the climate change has no perceivable effect on PannErgy Group, and the company does not expect any trend-like effects in the future either.
PannErgy primary aims to utilize its substantial uncommitted available thermal capacities – in addition to the capacities being utilized now –, which is expected to further reduce sensitivity to ambient temperature changes. The most important possible areas for utilizing the available uncommitted thermal capacities include:

• Implementation of energy efficiency and optimization projects with existing customers;
• Cold energy projects – for the utilization of the so-called 'summer' heat;
• Connection of new customers indirectly through district heating systems or directly to the geothermal systems on the primary or the secondary (return) sides.