As the conflict in the Middle East intensified, the mood on the European stock markets deteriorated, and this did not spare the BUX index, which fell by almost one percent during the week. All of the blue chips were marginally lower this week.
Regarding midcaps, however, a green paper, PannErgy, can have a significant rally behind it this week, as its share price rose by more than 8 percent.
Csaba Lantos, Minister of Energy, is behind this Monday’s decree states that district heat producer heat fees will be determined using two-element pricing from the first of October. In this way, unlike before, district heat producers also receive a basic monthly fee regardless of the amount of heat sold.
The utilization of geothermal energy is gaining momentum
According to a statement by PannErgy, the geothermal heat production company, the changes brought about by the new regulation will make their operations more predictable, as the company’s revenues will in the future be less dependent on weather conditions and the correspondingly fluctuating revenues from heat sales.
Regarding the company’s future prospects, investors could also take into account that development tenders will be announced by the end of the year, Gergely Horváth, analyst of the Makronóm Institute, told Economx.
The HUF 95 billion investment and development support plan of the Ministry of Energy specifically applies to district heating systems operating with renewable energy sources.
The adoption of the National Geothermal Utilization Concept by the government can also be evaluated favorably in terms of the company’s future, as
the aim is to strengthen the actors of domestic geothermal energy,
which they intend to promote, among other things, with a targeted call for tenders and the launch of a Geothermal Investment Credit Scheme. In relation to PannErgy’s prospects, it is also worth noting that according to the resolution of the general meeting at the end of April, the company launched a share buyback program in the amount of HUF 1.5 billion at a maximum price of HUF 1,997 per share, which can be implemented by April 17, 2025. As part of the program, not a single repurchase has yet taken place, so the launch of the program in the near future could provide a serious support for the exchange rate.
Image: Tradingview.com
Geothermal energy can be a strong domestic sector
On Friday announcement issued by the Ministry of Energy (ME), in which they informed that for many years, Hungary has been among the top five countries in Europe in the direct utilization of geothermal energy.
The future belongs to green energy, the more effective exploitation of opportunities strengthens energy sovereignty, contributes to the spread of emission-free energy production and keeping energy prices at an affordable level – emphasized the Ministry of Energy in its analysis published on Friday.
The measures set out in the National Geothermal Utilization Concept adopted by the government, together with the related support programs, can make geothermal energy a leading sector of the Hungarian green economy.
the ministry raised. The thickness of the earth’s crust in the Carpathian Basin is half of the average value of the European continent, which results in higher subsurface temperatures.
The rocks that make up the area are able to store a large amount of the natural underground water supply supplied by precipitation. Hungary therefore has favorable conditions for the multifaceted utilization of geothermal energy, explained the Ministry of Education.
They found that after 2010, the production of geothermal heat energy increased more than fourfold, but there is still plenty of room for the further use of green energy.
- In recent years, the industry has been boosted by the creation of a new, flexible licensing system, the Hungarian Geothermal Cluster, and the continuation of the national geothermal research program.
- For the winners of the tender announced as part of the Climate and Nature Conservation Action Plan, HUF 4.8 billion will mitigate the financial risks of geothermal drilling.
- The HUF 5.3 billion appeal financed by the resources of the Swiss Fund, which provides support for, among other things, the modernization of existing thermal wells, will soon come to fruition
the ministry listed. The basic goal of the National Geothermal Utilization Concept is to increase domestic energy use, which is currently 6.4 petajoules, by a fifth (to 8 petajoules) by 2026, and to double the base value (to 12-13 petajoules) by the beginning of the next decade.
During the time frame of the strategy, the share of geothermal energy in the total heat production may increase from 6.5 percent to 25-30 percent.
By 2035, the new utilizations can replace a total of around 1-1.2 billion cubic meters of natural gas, significantly reducing the import exposure – the Ministry of Energy explained its calculations.
The ministry highlighted: in order to quickly achieve the initial results, the state assumes a greater role in researching and encouraging the utilization of geothermal energy.
The government provides a predictable financing environment adapted to the nature of the investments, for example in order to reduce geological and financial risks, or by launching the Geothermal Investment Credit Scheme, which operates with preferential and predictable conditions.
It is an important expectation for the necessary investments from the energy point of view to pay off at the national economic level, to increase competitiveness, to revive energy machine manufacturing on a green basis and to give orders to the domestic industry, exploiting settlement development and tourism opportunities as well.
Our newspaper has published several articles on the potential of domestic geothermal energy, the latest of which you can read by clicking here.
Source: www.economx.hu
