Tamás Iván Kovács Deputy State Secretary for European Union and International Affairs outlined Hungary’s position in issues related to European energy infrastructure development and energy efficiency improvement at the European Union’s Transport, Telecommunication and Energy Council meeting held on 14 February, 2012 in Brussels.

The Energy Council discussed the draft regulation on trans-European infrastructure at first reading. In his address, Mr Kovács stated that Hungary welcomed support to building the missing infrastructure as a major step on the way towards creating a single internal energy market. The Member States must be given a pivotal role in the selection and control of the projects of common interest and the actions promoting their implementation, Tamás Iván Kovács stressed.

The Hungarian Government agrees with the approach that during the selection and implementation of the projects of common interest, primarily those alternatives must be given preference that are also feasible on a market basis. However, when the decisions are made the social and economic impacts should not be disregarded, and the option of using, should the need arise, EU funds must be maintained, Mr Kovács added.

The draft regulation determines nine strategic trans-European energy corridors and sets three priority horizontal objectives: the deployment of smart networks, the electricity “highway” and the development of cross-border networks. Hungary is included in four priorities: electricity interconnections in Central, Eastern and South-eastern Europe, the north-south gas connections in Central, Eastern and South-eastern Europe, oil pipelines in Central and Eastern Europe, and the southern gas corridor.

The North-South energy corridor regional working team, initiated by the European Commission, has identified numerous projects affecting Hungary. These are unlikely to be established on a purely market basis, but may become projects of common interests pursuant to the regulation. The southern gas corridor is one of the pillars of supply to Hungary and the Central European region. As the affected countries share the interest of importing natural gas from the Caspian region, priority treatment of the related projects is justified.

During discussion of the energy efficiency directive, the Hungarian delegation considered it useful to create a uniform, common methodology for monitoring progress in order to make the 20% targeted for 2020 feasible. The largest potential in maintaining the level of primary energy, reducing dependence on imported energy, and the creation of new and stable jobs lies in the improvement of energy saving and energy efficiency. A massive programme for improving building services can help cut heat demand by a volume corresponding to ten percent of the current primary energy demand in Hungary by 2030. Based on Hungarian experts’ estimates, more than 40,000 new jobs can be created in construction industry if the planned level of building services programmes is implemented.

Due to the slowdown in investments and the underlying bank lending in the wake of the economic crisis, the achievement of appropriate efficiency improvement is a serious challenge for the industry as well as the agriculture. In the Hungarian representatives’ opinion the successful practical implementation of the directive requires higher stress on the creation of new financial and financing means, Tamás Iván Kovács stated.

In summary of the most important conclusions of the informal ministerial meeting held on 10 February 2012 on the peaceful use of nuclear energy, Mr Kovács confirmed, on behalf of the Hungarian Government, that the common European energy policy must be build on four closely interconnected pillars: the safety of stocks, consumers’ purchasing power, industrial competitiveness and cutting greenhouse gas emission. The simultaneous achievement of these objectives requires the analysis of the utilisation of all available low-carbon technologies, leaving Member States’ freedom to choose unaffected. The competent leaders and experts of the 16 European countries delegating representatives to the meeting plan to regularly consult and exchange their experiences in this issue.

(Ministry of National Development , Department of Communication)