The Role of Geothermal in Hungary's Energy and Domestic Heating Policy

Abstract

There are many compelling arguments for using geothermal energy. The most important is that it exploits Hungary’s rich geothermal reservoirs, which are considerably warmer, closer to the surface and therefore more easily exploited than the European average. Both now and in the foreseeable future, Hungary’s geothermal resources can satisfy the conditions required for efficient energy production. In the long term, the tremendous amount of energy stored in our geothermal reservoirs could potentially meet a major part of the country’s energy demand. One very important consideration is Hungary’s current dependence on fossil energy, more than 70% of which is imported. By contrast, geothermal energy is completely home-grown and could satisfy up to 435 PJ of our heating and cooling needs for well into the future. To that extent, geothermal is a powerful tool for reducing energy imports and achieving the national goal of energy independence. In the long term, geothermal would be more affordable and less likely to undergo major price fluctuations. Speculators would not be able to manipulate the geothermal supply to increase or decrease its price, unlike oil and gas imports. This stability is very important not only for average consumers but also for businesses that have to estimate their energy costs many years ahead of time.