Hungarian PannErgy reports 20% increase in geothermal heat sales for 2019

Miskolc geothermal heat plant , Hungary (source: PannErgy)
Alexander Richter 16 Jan 2020

In its report on geothermal heat sales, Hungarian company PannErgy reports an increase in heat sales based on volume sold of about 20% 2018 over 2019.

In its Q4 report for 2019, Hungarian PannErgy Nyrt. provides a production report on a quarterly basis describing green energy production and use. The Company’s report gives account of the condition of its key geothermal energy production systems, the experience related to their operation, and the data on green heat sold in the reporting period.

A comparison of the 2019 Q4 heat sales figures to those of the corresponding period of 2018 shows a year-on-year improvement in the utilisation of capacities at the Györ and Miskolc Geothermal Projects.

Figure: Consolidated quantity of heat sold (GJ) The chart illustrates the aggregate amount of heat sold by the Miskolc, Györ, Szentl?rinc and Berekfürdö projects, in a monthly breakdown (source: PannErgy)

The 2–8 degrees C ambient temperature range is ideal for day-to-day geothermal heat sales during the heating season, especially when the difference between the daily minimum and maximum temperatures is as small as possible. The monthly average of the average daily temperatures in the period under review were practically the same as in the corresponding period of 2018, but temperature changes within any of the months or days in the reporting period were more favourable. Similarly to the base period, the 2019/2020 district heating season did not begin in September. The amount of heat sold in 2019 Q4 was up 14% compared to the base period, which means that the quarterly target has been achieved.

Miskolc Geothermal Project (Miskolci Geotermia Zrt., Kuala Kft.)

The Geothermal System of Miskolc sold a total of 289,778 GJ thermal energy in 2019 Q4, showing a 20%-increase in comparison to heat sales data in 2018 Q4. The growth is attributed mainly to the performance in October and November which could be attained due to the previously mentioned more favourable weather conditions, the minor technical problems in the base period, and the improvements in the utilisation of available capacities.

Györ Geothermal Project (DD Energy Kft., Arrabona Koncessziós Kft.)

The Geothermal System of Györ sold a total of 291,089 GJ thermal energy during 2019 Q4, up 11% year-on-year. Similarly to operations in Miskolc, the growth was determined mainly by the October and November performance in Györ as well, primarily due to the already mentioned weather conditions and the third productive well that has already started its regular operation.

Geothermal Heating Facility of Szentlörinc (Szentlörinci Geotermia Zrt.)

In Szentlörinc, the weather was warmer in the reporting period. The amount of heat sold was 6,067 GJ. The Geothermal Facility of Szentlörinc can fully meet the local district heating system’s demand for heat on its own, therefore the weather sensitivity of the geothermal heat input is significantly higher than that of district heating systems with a complex heat resource. This impact was the reason for the 17% decrease in heat input during the reporting period.

Climate change 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%. 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 liveable environment by the CO2 emission cuts.

The reduction amounted to 34,098 tons, while the total aggregate amount of greenhouse gas emission saved by the PannErgy Group so far amounts to 450,408 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 favourable 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 aims to utilise its substantial uncommitted available thermal capacities – in addition to the capacities being utilised now –, which is expected to further reduce sensitivity to ambient temperature changes. The most important possible areas for utilising the available uncommitted thermal capacities include:

  • Implementation of energy efficiency and optimisation projects with existing customers;
  • Cold energy projects – for the utilisation 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.

Source: Company release