Solar Energy Industry in Hungary: Opportunities, Challenges, and Regulatory Framework

Szathmáry Kristóf György (2024) Solar Energy Industry in Hungary: Opportunities, Challenges, and Regulatory Framework. Külkereskedelmi Kar.

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Absztrakt (kivonat)

A comprehensive analysis of the solar energy industry in Hungary, including its potential,challenges, and regulatory framework, is the goal of this research. This study takes a mixedmethods approach, combining qualitative and quantitative techniques to s hed light on the industry.For the qualitative part of the research, we looked at a lot of policy papers, industry reports, andpublished materials. Conversely, 132 people filled out a survey on Google Docs, which forms thebasis of the quantitative dimens ion. The research delves into participants' views, understanding,and preferences on solar energy using a well crafted questionnaire. Considering the varyingdegrees of expertise, the study's overarching goal is to shed light on the barriers to widespreadadoption and identify the most effective forms of government incentives. This two prongedapproach makes the findings more nuanced and thorough. When analyzing data, a mixed methodsapproach is used, which involves statistical analysis of quantitative data to find patterns andthematic evaluation of qualitative outcomes to get deeper insights. The effectiveness and costefficiency of Google Docs, which allows for a broad variety of answers, led to its selection as thedata collection tool. By combining and anonymizing comments, a safe research environment iscreated, preserving privacy and confidentiality. Theoretically and practically, this initiative intendsto have a major impact on the solar energy market in Hungary. This paper provides stakeholderswit h the information they need to make educated choices by offering a comprehensive analysis ofpossible benefits and challenges. Not only do the findings add to the body of academic knowledge,but they also serve as a useful roadmap for investors, legislator s, and industry experts in Hungary'sdynamic solar energy market. Considering the nation's recent efforts to diversify its energy sources,this research intends to provide light on how best to build a sustainable solar energy future.4Solar Energy Industry in Hungary: Opportunities, Challenges, andSolar Energy Industry in Hungary: Opportunities, Challenges, and Regulatory FrameworkRegulatory FrameworkChapter 1.Chapter 1. IntroductionIntroductionRenewable energy sources are becoming more and more popular across the world, and solar powerRenewable energy sources are becoming more and more popular across the world, and solar power is at the forefront of this movement. Solar power's benefits in lowering carbon emissions and is at the forefront of this movement. Solar power's benefits in lowering carbon emissions and increasing energy security have been apparent to many countries, incincreasing energy security have been apparent to many countries, including Hungary. Beyond a luding Hungary. Beyond a surfacesurface--level understanding of solar systems, this introduction lays the groundwork for an inlevel understanding of solar systems, this introduction lays the groundwork for an in--depth depth analysis of Hungary's solar energy sectoranalysis of Hungary's solar energy sector (Antal, 2019). To begin, the nation has a clear (Antal, 2019). To begin, the nation has a clear geographical advantage when it comes to sgeographical advantage when it comes to solar energy generation due to its yearolar energy generation due to its year--round availability round availability ofof sunshine. Now is a great time for Hungary to take advantage of solar power and lessen its sunshine. Now is a great time for Hungary to take advantage of solar power and lessen its reliance on foreign power sources. Solar energy also offers several advantages to the environment. reliance on foreign power sources. Solar energy also offers several advantages to the environment. The use of this renewable energy source lessens Hungary's contribuThe use of this renewable energy source lessens Hungary's contribution to global warming and tion to global warming and other climate crises. Solar power's meteoric rise has been good for the economy, job markets, and other climate crises. Solar power's meteoric rise has been good for the economy, job markets, and new technology developments.new technology developments.There are a lot of obstacles to the broad use of solar panels in Hungary, notwithstanding theThere are a lot of obstacles to the broad use of solar panels in Hungary, notwithstanding the advantages. The hefty upfront cost of solar panel installation is one of the main obstacles. Many advantages. The hefty upfront cost of solar panel installation is one of the main obstacles. Many households and companies are hesitant to switch to solar power bhouseholds and companies are hesitant to switch to solar power because of the high upfront costs. ecause of the high upfront costs. A further challenge is the unpredictability of solar power output. Production of solar energy is A further challenge is the unpredictability of solar power output. Production of solar energy is highly dependent on the everhighly dependent on the ever--changing weather conditions. Investing in energy storage and grid changing weather conditions. Investing in energy storage and grid infrastructure is Hungary's oninfrastructure is Hungary's only choice for dealing with the unreliable power supply. To overcome ly choice for dealing with the unreliable power supply. To overcome these obstacles and make the most of Hungary's solar energy sector, these obstacles and make the most of Hungary's solar energy sector, severalseveral options may be options may be explored. Solar panel installation might be made more affordable with the help of government explored. Solar panel installation might be made more affordable with the help of government subsidies and tax refunds (Kumar et al., 2021). It is possible to reduce administrative costs by subsidies and tax refunds (Kumar et al., 2021). It is possible to reduce administrative costs by streamlining the licensing and regulatory processestreamlining the licensing and regulatory processes for grid connections. s for grid connections.There are promising futures for solar power as the percentage of renewable electricity producedThere are promising futures for solar power as the percentage of renewable electricity produced by photovoltaic (PV) installations continues to rise in many EU member states' energy mixes. by photovoltaic (PV) installations continues to rise in many EU member states' energy mixes. However, there are substantial obstacles to overcome, such as the cHowever, there are substantial obstacles to overcome, such as the complexity of navigating through omplexity of navigating through their systems and the constant evolution of support programs among nations. Because photovoltaic their systems and the constant evolution of support programs among nations. Because photovoltaic5(PV) power plant building laws, technical standards, and regulations are always changing, it's not(PV) power plant building laws, technical standards, and regulations are always changing, it's not uncommon for some countries to have outdated information available. The electricity grid and uncommon for some countries to have outdated information available. The electricity grid and related investments are becoming more and more affected by the frelated investments are becoming more and more affected by the fast development of the solar ast development of the solar sector in Hungary, as it is in other nations. Consequently, studying the characteristics of sector in Hungary, as it is in other nations. Consequently, studying the characteristics of photovoltaic (PV) power plant installations in Hungary is very necessary. photovoltaic (PV) power plant installations in Hungary is very necessary.Installation processes for solar power stations with capacitiesInstallation processes for solar power stations with capacities of of more than 50 kW are the main more than 50 kW are the main subject of this study. Projects that fall short of this mark are known as HMKEs, or householdsubject of this study. Projects that fall short of this mark are known as HMKEs, or household--sized sized photovoltaic systems, and are subject to separate regulations in Hungary. The significance and photovoltaic systems, and are subject to separate regulations in Hungary. The significance and scale of these facilities are shscale of these facilities are shown by the fact that solar power plant projects in Hungary often own by the fact that solar power plant projects in Hungary often display capacities ranging from 500 kW to 100 MW. Recognizing the effect of EU regulations and display capacities ranging from 500 kW to 100 MW. Recognizing the effect of EU regulations and each nation's unique legal aneach nation's unique legal and regulatory frameworks is crucial for properly understanding the d regulatory frameworks is crucial for properly understanding the intricacies of photovoltaic (PV) investment planning and execution. As a result, the study begins intricacies of photovoltaic (PV) investment planning and execution. As a result, the study begins with a comprehensive analysis of the features and developments in the policy and regulation with a comprehensive analysis of the features and developments in the policy and regulation environment.environment.In the European Union (EU), stringent rules aiming at reducing carbon emissions and promotingIn the European Union (EU), stringent rules aiming at reducing carbon emissions and promoting sustainability direct the use of renewable energy sources, particularly solar power. Through the sustainability direct the use of renewable energy sources, particularly solar power. Through the execution of several regulations and initiatives, the European Unexecution of several regulations and initiatives, the European Union (EU) exhibits its commitment ion (EU) exhibits its commitment to renewable energy. All of the member states of the European Union will feel the effects of these to renewable energy. All of the member states of the European Union will feel the effects of these policies on their renewable energy initiativespolicies on their renewable energy initiatives (Al(Al--Sharafi et al., 2017)Sharafi et al., 2017). Photovoltaic (PV) power . Photovoltaic (PV) power plants have seen significaplants have seen significant improvement in Hungary's legal and regulatory frameworks, in line nt improvement in Hungary's legal and regulatory frameworks, in line with EU goals. Investors, developers, and other stakeholders in the solar business are greatly with EU goals. Investors, developers, and other stakeholders in the solar business are greatly affected by the aforementioned changes. Photovoltaic power plant efforts in Hungary are greaaffected by the aforementioned changes. Photovoltaic power plant efforts in Hungary are greatly tly affected by the country's regulatory and legal environment. affected by the country's regulatory and legal environment.The complexities of permits, grid connection procedures, and financial incentives must be fullyThe complexities of permits, grid connection procedures, and financial incentives must be fully grasped by project developers. Also, because these laws may be changed at any time, it's important grasped by project developers. Also, because these laws may be changed at any time, it's important to keep up with the latest developments so that information ito keep up with the latest developments so that information is accurate and relevant. Not only does s accurate and relevant. Not only does the study shed light on the state of the solar business in Hungary as it is right now, but it also the study shed light on the state of the solar business in Hungary as it is right now, but it also cancan shed light on important questions that can inform decisions in the future. By shedding light on shed light on important questions that can inform decisions in the future. By shedding light on installation charainstallation characteristics, regulatory dynamics, and the policy environment, this research cteristics, regulatory dynamics, and the policy environment, this research6enriches the broader scholarly conversation on sustainable energy transitions. Knowing the ins andenriches the broader scholarly conversation on sustainable energy transitions. Knowing the ins and outs of solar power plant projects is essential as Hungary continues its heavy engagement in the outs of solar power plant projects is essential as Hungary continues its heavy engagement in the renewable energy industry. renewable energy industry. ToTo promote an energy trajectory that is both sustainable and kind to the promote an energy trajectory that is both sustainable and kind to the environment, this knowledge is crucial. environment, this knowledge is crucial. A steady flow of electricity and system stability may be A steady flow of electricity and system stability may be achieved by purchasing energy storage devices, such as batteries (Talamon et al., 2019). If Hungary achieved by purchasing energy storage devices, such as batteries (Talamon et al., 2019). If Hungary wants its solar buswants its solar business to be there for the long haul, it has to invest in energy storage and grid iness to be there for the long haul, it has to invest in energy storage and grid interconnection technology. Along with intriguing facts on Hungary's flourishing solar energy interconnection technology. Along with intriguing facts on Hungary's flourishing solar energy business, this thesis will provide an inbusiness, this thesis will provide an in--depth study of the obstacles, prospects,depth study of the obstacles, prospects, and prospective and prospective solutions. Our goal is to help the nation move towards renewable energy sources and increase solutions. Our goal is to help the nation move towards renewable energy sources and increase awareness of the opportunities and challenges that this sector offersawareness of the opportunities and challenges that this sector offers We will examine the future of We will examine the future of this industry, its potential benefits, and thethis industry, its potential benefits, and the obstacles preventing its broader adoption, before obstacles preventing its broader adoption, before offering practical answers to these problems. Several opportunities and benefits exist in Hungary's offering practical answers to these problems. Several opportunities and benefits exist in Hungary's solar energy businesssolar energy business (Al(Al--Sharafi et al., 2017)Sharafi et al., 2017)..1.1.1.1. Justification For TopicJustification For TopicThe selection of the present subject matter, namely the solar energy sector in Hungary, wasThe selection of the present subject matter, namely the solar energy sector in Hungary, was motivated by a discernible motivated by a discernible gapgap in the existing scholarly literature. Despite the prevailing in the existing scholarly literature. Despite the prevailing worldwide inclination towards renewable energy, there exists a dearth of comprehensive scholarly worldwide inclination towards renewable energy, there exists a dearth of comprehensive scholarly researchresearchs that specifically s that specifically focusesfocuses on the intricate dynamics and unique obstacles encountered by on the intricate dynamics and unique obstacles encountered by Hungary's solar energy sector. The absence of this research gap is a notable oversight considering Hungary's solar energy sector. The absence of this research gap is a notable oversight considering the distinctive geographic and legthe distinctive geographic and legislative framework of Hungary, which gives rise to different islative framework of Hungary, which gives rise to different possibilities and challenges not encountered by other countries. The dedication shown by Hungary possibilities and challenges not encountered by other countries. The dedication shown by Hungary in enhancing the proportion of renewable energy within its domestic power system underscores in enhancing the proportion of renewable energy within its domestic power system underscores the nthe need to comprehend the complexities inherent in the solar industry (Zsiborács et al., 2023b). eed to comprehend the complexities inherent in the solar industry (Zsiborács et al., 2023b). The objective of this thesis is to address the existing gap in knowledge by presenting pertinent data The objective of this thesis is to address the existing gap in knowledge by presenting pertinent data that has the potential to impact policythat has the potential to impact policy--making, corporate strmaking, corporate strategies, and academic discussions. The ategies, and academic discussions. The primary objective of the primary objective of the programprogram is to enhance our understanding of the solar energy sector, is to enhance our understanding of the solar energy sector, to to facilitatefacilitate the nation's shift towards a more varied and environmentally friendly energy landscapethe nation's shift towards a more varied and environmentally friendly energy landscape..71.2.1.2. Proposed MethodologyProposed MethodologyTo study the solar energy sector in Hungary, this study employed a mixedTo study the solar energy sector in Hungary, this study employed a mixed--methods strategy, methods strategy, integrating qualitative and quantitative techniques. Both primary and secondary sources of integrating qualitative and quantitative techniques. Both primary and secondary sources of information were reviewed. Reviewing published publications, policy papersinformation were reviewed. Reviewing published publications, policy papers, and industry reports , and industry reports in their entirety will be carried out in their entirety will be carried out toto acquire qualitative data. A Google Docs survey will be used acquire qualitative data. A Google Docs survey will be used to collect quantitative data from a sample of 1to collect quantitative data from a sample of 13232 people. A structured set of twelve people. A structured set of twelve wellwell--craftedcrafted questions will be sent to individuquestions will be sent to individuals with diverse degrees of knowledge in the solar sector. By als with diverse degrees of knowledge in the solar sector. By asking these questions, we want to learn more about people's solar energy knowledge, opinions, asking these questions, we want to learn more about people's solar energy knowledge, opinions, and preferences, as well as any obstacles to widespread solar energy adoption and their preferred and preferences, as well as any obstacles to widespread solar energy adoption and their preferred fforms of government incentives. A mixedorms of government incentives. A mixed--methods approach will be used to examine both methods approach will be used to examine both quantitative and qualitative data. The numeric data will be statistically quantitative and qualitative data. The numeric data will be statistically analyzedanalyzed to discover to discover patterns and correlations, while the qualitative results will be thematicallpatterns and correlations, while the qualitative results will be thematically appraised to extract y appraised to extract meaningful insights. Triangulating the results from the two data sources will provide the meaningful insights. Triangulating the results from the two data sources will provide the impression that Hungary's solar energy sector is broader and more advanced. A simple and impression that Hungary's solar energy sector is broader and more advanced. A simple and inexpensive way to get in contact with different repliinexpensive way to get in contact with different replies is to use Google Docs for data collecting. es is to use Google Docs for data collecting. ToTo ensure privacy and confidentiality, their replies will be combined and made anonymous. ensure privacy and confidentiality, their replies will be combined and made anonymous. Making significant contributions to both theoretical research and practical applications in Making significant contributions to both theoretical research and practical applications in Hungary's solar energy sectoHungary's solar energy sector, this holistic approach strives to offer robust and thorough r, this holistic approach strives to offer robust and thorough researchresearch of the issueof the issue..Chapter 2.Chapter 2. Literature ReviewLiterature ReviewArmentrout and Armentrout (2009)Armentrout and Armentrout (2009) evaluatedevaluated that that SSustainableustainable energy is the power that can keep energy is the power that can keep the lights on for us now without compromising the capacity of future generations to do the same. the lights on for us now without compromising the capacity of future generations to do the same. This widely acknowledged definition emphasizes the critical need to implement sustainable energy This widely acknowledged definition emphasizes the critical need to implement sustainable energy solutions to reduce emissionsolutions to reduce emissions of greenhouse gases and lessen the impact of climate change. It is s of greenhouse gases and lessen the impact of climate change. It is backed by the scientific community and the world community. Since renewable energy sources backed by the scientific community and the world community. Since renewable energy sources encourage selfencourage self--sufficiency and lessesufficiency and lessen reliance on fossil fuels, their adoption improves energy n reliance on fossil fuels, their adoption improves energy security. Sustainable energy solutions are challenging to create and implement; they need new security. Sustainable energy solutions are challenging to create and implement; they need new technologies, political backing, and public understanding of the issue.technologies, political backing, and public understanding of the issue.8Energy storage, smart grids, wind turbines, geothermal energy, solar photovoltaics (PV), hydrogenEnergy storage, smart grids, wind turbines, geothermal energy, solar photovoltaics (PV), hydrogen fuel cells, and a host of other renewable energy technologies are now in the works. The technology fuel cells, and a host of other renewable energy technologies are now in the works. The technology behind solar photovoltaic (PV) panels, which convert sunligbehind solar photovoltaic (PV) panels, which convert sunlight into power, is advancing at a rapid ht into power, is advancing at a rapid pace, making it more costpace, making it more cost--effective and efficient. As a result of technical developments, biofuels effective and efficient. As a result of technical developments, biofuels produced from renewable biomass sources are gradually replacing conventional fossil fuels as a produced from renewable biomass sources are gradually replacing conventional fossil fuels as a preferred energy sourcepreferred energy source (Bergin et al., 2017)(Bergin et al., 2017). Integrating renewable energy sources into the grid, . Integrating renewable energy sources into the grid, balancing balancing supply,supply, and demand, and providing a clean energy source for transportation and other and demand, and providing a clean energy source for transportation and other uses are the goals of these technologies, which together strive to provide a continuous and uses are the goals of these technologies, which together strive to provide a continuous and dependable electrical supply. It is believed that these technologies will grow in effidependable electrical supply. It is believed that these technologies will grow in efficiency, ciency, affordability, and use affordability, and use because ofbecause of ongoing research and development. These innovations might pave ongoing research and development. These innovations might pave the way for a more environmentally friendly energy future the way for a more environmentally friendly energy future that satisfies the world's increasing need that satisfies the world's increasing need for energy without sacrificing reliability or affordability.for energy without sacrificing reliability or affordability.Sustainable energy practices, regulations, and technology have the potential to provide severalSustainable energy practices, regulations, and technology have the potential to provide several economic benefits, including reduced costs, new employment opportunities, and increased economic benefits, including reduced costs, new employment opportunities, and increased competitiveness. We can lessen our dependence on fossil fuelscompetitiveness. We can lessen our dependence on fossil fuels——which are which are susceptible to price susceptible to price fluctuations and disruptions in supplyfluctuations and disruptions in supply——by shifting to renewable energy sources. We expect by shifting to renewable energy sources. We expect substantial price drops for renewable energy sources like wind and solar shortly, and in many areas, substantial price drops for renewable energy sources like wind and solar shortly, and in many areas, they are already competitive with conventionthey are already competitive with conventional optionsal options (Bradley, 2020)(Bradley, 2020). By reducing inefficiencies . By reducing inefficiencies and maximizing efficiency, energy efficiency measures have the potential to reduce energy costs. and maximizing efficiency, energy efficiency measures have the potential to reduce energy costs. Opportunities for employment in renewable energy, energy efficiency, and energy storage may Opportunities for employment in renewable energy, energy efficiency, and energy storage may arise because of the research, developarise because of the research, development, and deployment of sustainable energy technology. In ment, and deployment of sustainable energy technology. In addition to reducing their energy bills, businesses that use sustainable energy practices and addition to reducing their energy bills, businesses that use sustainable energy practices and technology boost their credibility, expand their customer base, and satisfy thtechnology boost their credibility, expand their customer base, and satisfy the growing demand for e growing demand for ecoeco--friendly goods and services.friendly goods and services.According toAccording to (Bradley, 2020) (Bradley, 2020) Reducing air pollution, which has serious effects on people's health, Reducing air pollution, which has serious effects on people's health, is one way that switching to renewable energy might improve public health. There may be less air is one way that switching to renewable energy might improve public health. There may be less air pollution and the costs to public health and the environment that come with it if renewabpollution and the costs to public health and the environment that come with it if renewable energy le energy sources are used more often together with other sustainable energy practices and technologies. sources are used more often together with other sustainable energy practices and technologies. Greenhouse gas emissions and land use effects associated with energy production and consumption Greenhouse gas emissions and land use effects associated with energy production and consumption may be mitigated by the immay be mitigated by the implementation of sustainable energy practices and technology. It is plementation of sustainable energy practices and technology. It is9possible to construct an energy system that is more robust and sustainable via the use of sustainablepossible to construct an energy system that is more robust and sustainable via the use of sustainable energy practices and technology. Efforts are being made using these methods and tools to lessen energy practices and technology. Efforts are being made using these methods and tools to lessen the ecological footprint of conventional energy sources. Tthe ecological footprint of conventional energy sources. There could be substantial monetary gains here could be substantial monetary gains in the long run from adopting sustainable energy policies, practices, and technologies. Less in the long run from adopting sustainable energy policies, practices, and technologies. Less pollution, better public health, cost savings, and increased job possibilities are all positive pollution, better public health, cost savings, and increased job possibilities are all positive outcomes. Businesses and toutcomes. Businesses and the environment may both gain from a more robust and environmentally he environment may both gain from a more robust and environmentally friendly energy system if blockchain and similar technologies were to be used to increase friendly energy system if blockchain and similar technologies were to be used to increase transparency and efficiency in the energy sector.transparency and efficiency in the energy sector.Among renewable energy sources, solar power is exceptional because of its little effect on theAmong renewable energy sources, solar power is exceptional because of its little effect on the environment and its relative simplicity of installation. Solar thermal systems, photovoltaic environment and its relative simplicity of installation. Solar thermal systems, photovoltaic systems, and building systems are among the many potential avenues fsystems, and building systems are among the many potential avenues for transforming the sun's or transforming the sun's rays into useful power. Solar energy systems that use huge ground components to capture sunlight rays into useful power. Solar energy systems that use huge ground components to capture sunlight are the most efficient and economical. Ideally, these parts would be placed close to densely are the most efficient and economical. Ideally, these parts would be placed close to densely populated regions, far from farms or forpopulated regions, far from farms or forests, so that transportation expenses and energy waste are ests, so that transportation expenses and energy waste are minimized. Due to the high levels of sunlight that reach that area, the main systems function minimized. Due to the high levels of sunlight that reach that area, the main systems function optimally in the unit's northwest corner. Nevertheless, an extensive study on the effects of solar optimally in the unit's northwest corner. Nevertheless, an extensive study on the effects of solar unitunits on desert ecosystems is essential.s on desert ecosystems is essential.Glass, steel, and cement are among the materials used in solar system construction and equipmentGlass, steel, and cement are among the materials used in solar system construction and equipment protection. Because solar units are expected to have higher material demands compared to fossilprotection. Because solar units are expected to have higher material demands compared to fossil--fuel units, there has to be a comprehensive study of environmenfuel units, there has to be a comprehensive study of environmental issues associated tal issues associated withwith construction. Safety problems are raised using uncommon and perhaps harmful elements in construction. Safety problems are raised using uncommon and perhaps harmful elements in photovoltaic systems, such as cadmium sulfidephotovoltaic systems, such as cadmium sulfide (Burrows and Fthenakis, 2015)(Burrows and Fthenakis, 2015). Chemicals used to . Chemicals used to prevent corrosion and freezing, as well as metals added to the water during system cleaning, raise prevent corrosion and freezing, as well as metals added to the water during system cleaning, raise concerns that largeconcerns that large--scale solar energy usage might contaminate water supplies. An indirect method scale solar energy usage might contaminate water supplies. An indirect method that that waterwater poisoning might occur is the use of pesticides to prevent weeds from growing near poisoning might occur is the use of pesticides to prevent weeds from growing near collectors.collectors.According (Gao et al., 2019)According (Gao et al., 2019) Solar Solar powerpower--generatinggenerating systems have two big negative effects on the systems have two big negative effects on the environment: first, the production of nonenvironment: first, the production of non--renewable materials such as glass and insulation; and renewable materials such as glass and insulation; and second, the permanent occupation of land for the duration of the system's operation. Toxic elements second, the permanent occupation of land for the duration of the system's operation. Toxic elements10including arsenic and cadmium are reported to be released by photovoltaic systems. There areincluding arsenic and cadmium are reported to be released by photovoltaic systems. There are several negative elements, including ground compaction and erosion, increased soil evaporation several negative elements, including ground compaction and erosion, increased soil evaporation potential, wind deflection, landscape damage, and eyesores generatedpotential, wind deflection, landscape damage, and eyesores generated by reflected sunlight. A by reflected sunlight. A study indicated that solar units generated far less particulate matter during construction compared study indicated that solar units generated far less particulate matter during construction compared to oil or coalto oil or coal--based units that generated the same amount of electricity. When comparing solar based units that generated the same amount of electricity. When comparing solar energy production to other sources energy production to other sources of energy, it is important to consider cost, hazardous waste, and of energy, it is important to consider cost, hazardous waste, and land utilization. Whether or whether solar power can significantly replace nuclear and fossil fuel land utilization. Whether or whether solar power can significantly replace nuclear and fossil fuel power plants is irrelevant to the need to address health and safety concerns. power plants is irrelevant to the need to address health and safety concerns.The quantity of water required for cooling is one of the several issues with systems that rely onThe quantity of water required for cooling is one of the several issues with systems that rely on photovoltaics. This might damage both abovephotovoltaics. This might damage both above-- and belowand below--ground units and remove dry habitats ground units and remove dry habitats from many kinds of animals. A considerable proportion of energy isfrom many kinds of animals. A considerable proportion of energy is wasted during transmission wasted during transmission since the generated energy has to be transmitted to households and businesses. Solar power is often since the generated energy has to be transmitted to households and businesses. Solar power is often touted as a green alternative to traditional heating and cooling systems, however, there is one touted as a green alternative to traditional heating and cooling systems, however, there is one known environmental problem withknown environmental problem with the machinery used in their production. Research has shown the machinery used in their production. Research has shown that there is little to no change in weather patterns and no aesthetic influence from planting trees that there is little to no change in weather patterns and no aesthetic influence from planting trees too close to homes. Solar power is generally acknowledged as a practical and beneficial energy too close to homes. Solar power is generally acknowledged as a practical and beneficial energy choice. However, it is essential to carefully monitor environmental conditions throughout the choice. However, it is essential to carefully monitor environmental conditions throughout the lifespan of solar energylifespan of solar energy--producing equipment.producing equipment.Solar power stands out among renewable energy sources due to its little environmental impact andSolar power stands out among renewable energy sources due to its little environmental impact and very straightforward installation process. Solar thermal systems, photovoltaic systems, and very straightforward installation process. Solar thermal systems, photovoltaic systems, and building systems are some of the several methods available for convbuilding systems are some of the several methods available for converting solar energy into erting solar energy into practical electricitypractical electricity (Gao et al., 2019)(Gao et al., 2019). The use of large ground. The use of large ground--based components in solar energy based components in solar energy systems for capturing sunlight is the most efficient and costsystems for capturing sunlight is the most efficient and cost--effective approach. Optimally, these effective approach. Optimally, these components should be situated in components should be situated in proximity to heavily inhabited areas, far from agricultural or proximity to heavily inhabited areas, far from agricultural or wooded areas, to decrease transportation costs and energy inefficiency. Given the abundant wooded areas, to decrease transportation costs and energy inefficiency. Given the abundant sunshine in that region, the primary systems operate at their highest efficiency in the northwest sunshine in that region, the primary systems operate at their highest efficiency in the northwest corncorner of the unit. However, it is crucial to do thorough research on the impact of solar installations er of the unit. However, it is crucial to do thorough research on the impact of solar installations on desert ecosystems.on desert ecosystems.11Materials such as glass, steel, and cement are used in the building of solar systems and forMaterials such as glass, steel, and cement are used in the building of solar systems and for safeguarding equipment. Due to the anticipated increased material requirements of solar units in safeguarding equipment. Due to the anticipated increased material requirements of solar units in comparison to fossilcomparison to fossil--fuel units, it is necessary to conduct fuel units, it is necessary to conduct thoroughthorough researchresearch of the environmental of the environmental challenges involved with their constructionchallenges involved with their construction (Gao, 2021)(Gao, 2021). The use of unusual and potentially . The use of unusual and potentially hazardous components, such as cadmium sulfide, in solar systems gives rise to safety concerns. hazardous components, such as cadmium sulfide, in solar systems gives rise to safety concerns. The use of chemicals to inhibit corrThe use of chemicals to inhibit corrosion and freezing, together with the introduction of metals osion and freezing, together with the introduction of metals into the water during system cleansing, gives rise to apprehensions over potential water supply into the water during system cleansing, gives rise to apprehensions over potential water supply contamination resulting from the widespread adoption of solar energy. Water poisoning might also contamination resulting from the widespread adoption of solar energy. Water poisoning might also ococcur indirectly by using pesticides to inhibit weed growth in the vicinity of water collectors.cur indirectly by using pesticides to inhibit weed growth in the vicinity of water collectors.Solar powerSolar power--producing systems have two significant adverse impacts on the environment: firstly, producing systems have two significant adverse impacts on the environment: firstly, the manufacturing of nonthe manufacturing of non--renewable materials such as glass and insulation; and secondly, the longrenewable materials such as glass and insulation; and secondly, the long--term use of land over the system's lifespan. Photovoltaic systterm use of land over the system's lifespan. Photovoltaic systems are believed to discharge toxic ems are believed to discharge toxic substances such as arsenic and cadmiumsubstances such as arsenic and cadmium (Mekhilef, Saidur and Safari, 2011)(Mekhilef, Saidur and Safari, 2011). There are several . There are several detrimental factors associated with this, such as soil compaction and erosion, heightened detrimental factors associated with this, such as soil compaction and erosion, heightened possibility for soil evaporation, wipossibility for soil evaporation, wind deflection, harm to the landscape, and unsightly reflections nd deflection, harm to the landscape, and unsightly reflections caused by sunlight. When evaluating solar energy generation about other energy sources, it is caused by sunlight. When evaluating solar energy generation about other energy sources, it is crucial to consider factors such as cost, the presence of dangerous waste, and the utilization of crucial to consider factors such as cost, the presence of dangerous waste, and the utilization of land. The question of whether solar electricity can effectively replace nuclear and fossil fuel power land. The question of whether solar electricity can effectively replace nuclear and fossil fuel power facilities is unrelated to the need to address health and safety problems. facilities is unrelated to the need to address health and safety problems.The water consumption associated with cooling is one of the several concerns about solar systems.The water consumption associated with cooling is one of the several concerns about solar systems. This may cause harm to both surface and subsurface structures and eliminate arid habitats for a This may cause harm to both surface and subsurface structures and eliminate arid habitats for a variety of animal species. A significant amount of energy is lvariety of animal species. A significant amount of energy is lost during transmission since the ost during transmission since the produced energy must be distributed to residential and commercial establishments. Solar power is produced energy must be distributed to residential and commercial establishments. Solar power is often promoted as an environmentally friendly substitute for conventional heating and cooling often promoted as an environmentally friendly substitute for conventional heating and cooling systemssystems (Shaner et al., 2016)(Shaner et al., 2016). . Nevertheless, there is a recognized environmental issue associated Nevertheless, there is a recognized environmental issue associated with the equipment used in their manufacturing. Scientific research has shown that planting trees with the equipment used in their manufacturing. Scientific research has shown that planting trees near dwellings has no impact on weather patterns and does not contribute to any noticeable near dwellings has no impact on weather patterns and does not contribute to any noticeable aesthetic changes. Solar power is widely recognized as a viable and advantageous energy option. aesthetic changes. Solar power is widely recognized as a viable and advantageous energy option. Nevertheless, it is important to diligently observe and assess environmental conditions over the Nevertheless, it is important to diligently observe and assess environmental conditions over the whole lifetime of solar energywhole lifetime of solar energy--generating equipment.generating equipment.122.1.2.1. Photovoltaic Technology and the Advantages of Renewable EnergyPhotovoltaic Technology and the Advantages of Renewable EnergyAguirre and Ibikunle (2014) evaluated mAguirre and Ibikunle (2014) evaluated many causes any causes that that have contributed to energy's rise to have contributed to energy's rise to prominence as a global concern, including rising demand from developing nations and industries, prominence as a global concern, including rising demand from developing nations and industries, technological developments, and the effects of globalization. These tendencies have led to a gap technological developments, and the effects of globalization. These tendencies have led to a gap between energy resource avbetween energy resource availability and demand, which has raised concerns about the efficacy of ailability and demand, which has raised concerns about the efficacy of resource allocation and called for the use of renewable energy sources and diversification of power resource allocation and called for the use of renewable energy sources and diversification of power generation. Additionally, it sgeneration. Additionally, it should be mentioned that the use of fossil fuels as the main energy hould be mentioned that the use of fossil fuels as the main energy source for a long time has contributed to the worsening of some public health concerns, which in source for a long time has contributed to the worsening of some public health concerns, which in turn has led to an increase in environmental pollution.turn has led to an increase in environmental pollution. (Martín et al., 2010)(Martín et al., 2010) With these With these considerations in mind, the rise in the use of renewable energy sources should come as no surprise. considerations in mind, the rise in the use of renewable energy sources should come as no surprise. When used effectively, the aforementioned resources may be a powerful weapon in the fight When used effectively, the aforementioned resources may be a powerful weapon in the fight against power plant carbon emissions and other climateagainst power plant carbon emissions and other climate change culpritchange culprits. s. (Aresta et al., 2013) (Aresta et al., 2013) argue argue that a dramatic increase in the use of renewable energy sources is necessary to reduce the carbon that a dramatic increase in the use of renewable energy sources is necessary to reduce the carbon intensity of world economies. Renewable energy is becoming an integral part of energy strategy intensity of world economies. Renewable energy is becoming an integral part of energy strategy and goals for many countries because of its many advantagand goals for many countries because of its many advantages, including as being clean, endlessly es, including as being clean, endlessly available, and easy on the environment. available, and easy on the environment.Power generation's carbon footprint may be significantly reduced with the help of renewablePower generation's carbon footprint may be significantly reduced with the help of renewable energy technologies that rely on intermittent sources, including wind and photovoltaics. Their energy technologies that rely on intermittent sources, including wind and photovoltaics. Their distinct qualities in comparison to more traditional energy sources mdistinct qualities in comparison to more traditional energy sources make their incorporation into ake their incorporation into electrical networks a significant issue. Diversifying their energy sources is a goal of policy for electrical networks a significant issue. Diversifying their energy sources is a goal of policy for many countries. Photovoltaic (PV) power plants have become an integral part of this effort since many countries. Photovoltaic (PV) power plants have become an integral part of this effort since they convert solar radiation inthey convert solar radiation into electricity directlyto electricity directly (Aresta et al., 2013)(Aresta et al., 2013). Thus, renewable energy . Thus, renewable energy sources may help reduce reliance on energy imports and sources may help reduce reliance on energy imports and allow localizingallow localizing energy policies. energy policies. Governments have taken several steps to encourage the broad use of photovoltaic (PV) technology. Governments have taken several steps to encourage the broad use of photovoltaic (PV) technology. ProgramsPrograms such as RPS, feedsuch as RPS, feed--in tariffs (FIT), and research and development (R&D) regulations are in tariffs (FIT), and research and development (R&D) regulations are examples. Efforts are on to lower investment barriers in the solar energy business, which is examples. Efforts are on to lower investment barriers in the solar energy business, which is booming across Europe. The tax refund scheme, which has a similar nbooming across Europe. The tax refund scheme, which has a similar name in the US, has also ame in the US, has also distributed this technology throughout the country. These rules will boost photovoltaic (PV) energy distributed this technology throughout the country. These rules will boost photovoltaic (PV) energy use, but they could mess with people's lives and businesses' operations in unexpected ways. use, but they could mess with people's lives and businesses' operations in unexpected ways.132.2.2.2. The EU's New Renewable Energy RegulationsThe EU's New Renewable Energy RegulationsAccording to Murray (2023), aAccording to Murray (2023), as a country, Hungary reached a watershed moment in its energy s a country, Hungary reached a watershed moment in its energy history in 2021 when solar power production surpassed coal. Solar power now accounts for 11% history in 2021 when solar power production surpassed coal. Solar power now accounts for 11% of Hungary's energy, whereas coal accounts for just 9%. This has caused a significant shift in the of Hungary's energy, whereas coal accounts for just 9%. This has caused a significant shift in the cocountry's energy composition. One sign of this shift is the quadrupling of solar power plant untry's energy composition. One sign of this shift is the quadrupling of solar power plant capacity in little over two years. Because they can withstand fluctuations in raw material prices capacity in little over two years. Because they can withstand fluctuations in raw material prices and supply chain disruptions, solar poand supply chain disruptions, solar power plants are rapidly becoming a popular energy source in wer plants are rapidly becoming a popular energy source in Hungary. Asia is the primary source of the solar panels and electrical components used in these Hungary. Asia is the primary source of the solar panels and electrical components used in these endeavors. endeavors. These parts will be sent out at the exact moment that a solar park project starts building, These parts will be sent out at the exact moment that a solar park project starts building, all because of the careful management of the order scheduling. The manufacture of solar panels all because of the careful management of the order scheduling. The manufacture of solar panels relies heavily on metals, despite their insignificance in the total crelies heavily on metals, despite their insignificance in the total cost. Since hundreds of tons of ost. Since hundreds of tons of steel are required for just one wind turbine, solar power steel are required for just one wind turbine, solar power projects are more insulated from projects are more insulated from fluctuations in the cost of these inputs.fluctuations in the cost of these inputs.While solar parks' fast growth is great for the environment, disputes may arise if they invadeWhile solar parks' fast growth is great for the environment, disputes may arise if they invade farmland. According to the relevant authorities in Hungary, solar power plants with a nominal farmland. According to the relevant authorities in Hungary, solar power plants with a nominal capacity below 0.5 megawatts do not need particular consent from thcapacity below 0.5 megawatts do not need particular consent from the land authority to be built on e land authority to be built on less appropriate agricultural land. With this cuttingless appropriate agricultural land. With this cutting--edge approach, solar projects might be edge approach, solar projects might be developed more efficiently, reducing the need for regulatory clearancedeveloped more efficiently, reducing the need for regulatory clearance (Aresta, Dibenedetto and (Aresta, Dibenedetto and Angelini, 2013)Angelini, 2013). There is no need f. There is no need for investors to worry about the capacity constraint while setting or investors to worry about the capacity constraint while setting up solar parks in many smaller projects. This allows them to take advantage of the exemption from up solar parks in many smaller projects. This allows them to take advantage of the exemption from authority approval. Smaller power plants find it much simpler to acquire financing using thiauthority approval. Smaller power plants find it much simpler to acquire financing using this s method, which also simplifies the licensing procedure. Additional motivation to invest in method, which also simplifies the licensing procedure. Additional motivation to invest in distributed solar power systems is the ease and speed with which smaller plants may be linked to distributed solar power systems is the ease and speed with which smaller plants may be linked to the grid. the grid. (Antal, 2017) claimed that (Antal, 2017) claimed that Solar power is just one way thSolar power is just one way that Hungary plans to diversify its at Hungary plans to diversify its energy mix and get on board with the worldwide trend towards renewable energy; the country is energy mix and get on board with the worldwide trend towards renewable energy; the country is actively pursuing this goal. Hungary is a key factor in the continuing worldwide movement actively pursuing this goal. Hungary is a key factor in the continuing worldwide movement towards cleaner and more sustainable etowards cleaner and more sustainable energy solutions because of its forwardnergy solutions because of its forward--thinking policies, thinking policies, capacity to adjust to changes in the supply chain, and emphasis on reducing environmental effects.capacity to adjust to changes in the supply chain, and emphasis on reducing environmental effects.142.3.2.3. Possibilities and ThreatsPossibilities and ThreatsWith its complicated legislative structure, Hungary's solar energy sector faces both possibilitiesWith its complicated legislative structure, Hungary's solar energy sector faces both possibilities and threats as it prepares for rapid expansion. More and more people are looking to solar power as and threats as it prepares for rapid expansion. More and more people are looking to solar power as a sustainable and environmentally friendly option, a sustainable and environmentally friendly option, duedue to the country's dedication to renewable to the country's dedication to renewable energyenergy (Antal, 2017)(Antal, 2017). Nevertheless, the ever. Nevertheless, the ever--changing nature of the sector is influenced by changing nature of the sector is influenced by severalseveral variables. The abundance of sunshine in Hungary's geographical position makes it an ideal site for variables. The abundance of sunshine in Hungary's geographical position makes it an ideal site for solar power plants.solar power plants. The solar energy industry may take advantage of this huge chance to grow. The solar energy industry may take advantage of this huge chance to grow. Hungary is wellHungary is well--positioned to become a center for solar technology research and development positioned to become a center for solar technology research and development because because ofof its abundant sunshine, which allows for efficient energy generation. There are a lot of its abundant sunshine, which allows for efficient energy generation. There are a lot of obstacles in Hungary's solar energy business, despite all the potential benefits. The large amount obstacles in Hungary's solar energy business, despite all the potential benefits. The large amount of money needed to set up solar infrastructure is a major hurdle. Deof money needed to set up solar infrastructure is a major hurdle. Despite the obvious advantagesspite the obvious advantages,, in the long run, the high initial investment may in the long run, the high initial investment may put off many companies and peopleput off many companies and people (Aresta, (Aresta, DibenedettoDibenedetto,, and Angelini, 2013)and Angelini, 2013). . ForFor the sector to reach its maximum potential, removing this the sector to reach its maximum potential, removing this financial obstacle is of utmost importance.financial obstacle is of utmost importance.One further thing that gets in the way of solar energy being used effectively is grid integration.One further thing that gets in the way of solar energy being used effectively is grid integration. Due to its intermittent nature, solar power output may overwhelm the current energy infrastructure. Due to its intermittent nature, solar power output may overwhelm the current energy infrastructure. To overcome this difficulty, To overcome this difficulty, enhancing grid capacity and creating energy storage technologies is enhancing grid capacity and creating energy storage technologies is importantimportant. To guarantee a steady and dependable supply of electricity, solar power must be . To guarantee a steady and dependable supply of electricity, solar power must be seamlessly integrated into the current system. In determining the future of Hungary's solar energy seamlessly integrated into the current system. In determining the future of Hungary's solar energy sector, the regulatory envsector, the regulatory environment is crucialironment is crucial (Proctor and Morse, 1977)(Proctor and Morse, 1977). Investment and economic . Investment and economic development are greatly assisted by government policies and incentives. Solar energy projects may development are greatly assisted by government policies and incentives. Solar energy projects may take advantage of feedtake advantage of feed--in tariffs and subsidies that Hungary is currently offering. The monetary in tariffs and subsidies that Hungary is currently offering. The monetary obstacles preventing broad adoptionobstacles preventing broad adoption may, however, be better addressed with more policy may, however, be better addressed with more policy development. In addition, international investment and publicdevelopment. In addition, international investment and public--private partnerships can only private partnerships can only flourish in an environment where regulations are crystal clear. Betflourish in an environment where regulations are crystal clear. Better conditions for investment ter conditions for investment may be achieved via the simplification of permit procedures and the maintenance of an open and may be achieved via the simplification of permit procedures and the maintenance of an open and honest regulatory atmosphere. For solar energy to continue growing, the government must honest regulatory atmosphere. For solar energy to continue growing, the government must prioritize policies that make it easier forprioritize policies that make it easier for projects to go forward.projects to go forward.152.4.2.4. Energy and Climate PlanEnergy and Climate PlanYu et al. (2021) evaluated that rYu et al. (2021) evaluated that recent years have seen significant progress in Hungary's use of ecent years have seen significant progress in Hungary's use of renewable energy sources; the country's National Energy and Climate Plan lays out lofty goals for renewable energy sources; the country's National Energy and Climate Plan lays out lofty goals for expanding its use of renewables. These goals demonstrate Hungary's commitment to sustainabilityexpanding its use of renewables. These goals demonstrate Hungary's commitment to sustainability and environmental consciousness, and they are in line with the EU's larger renewable energy and environmental consciousness, and they are in line with the EU's larger renewable energy ambitions. Finally, because of its favorable geographical circumstances and increasing dedication ambitions. Finally, because of its favorable geographical circumstances and increasing dedication to renewable energy, Hungary's sto renewable energy, Hungary's solar energy business is ripe with opportunity. Strategic regulatory olar energy business is ripe with opportunity. Strategic regulatory actions may facilitate sector expansion, notwithstanding the persistence of constraints like upfront actions may facilitate sector expansion, notwithstanding the persistence of constraints like upfront capital expenditures and grid interconnection. To fully use solar energy in Hungary, thcapital expenditures and grid interconnection. To fully use solar energy in Hungary, there has to ere has to be a wellbe a well--defined and encouraging legal framework in place, as well as ongoing technological defined and encouraging legal framework in place, as well as ongoing technological improvements. improvements. ToTo shape a solar energy environment that is both sustainable and resilient for the shape a solar energy environment that is both sustainable and resilient for the nation, nation, the public and private sectors must workthe public and private sectors must work togethtogether as the industry evolves.er as the industry evolves.There has been a remarkable uptick in solar momentum in Hungary, with a total producing capacityThere has been a remarkable uptick in solar momentum in Hungary, with a total producing capacity of about 4 GW, with over 2.5 GW attributed to solar arrays exceeding 50 kW in size. Statistics of about 4 GW, with over 2.5 GW attributed to solar arrays exceeding 50 kW in size. Statistics released in December by Hungary's Energetic and Public Utilitiesreleased in December by Hungary's Energetic and Public Utilities Regulatory Authority show the Regulatory Authority show the industry's meteoric rise in the country. Hungary has achieved a remarkable transformation in only industry's meteoric rise in the country. Hungary has achieved a remarkable transformation in only five years, going from a meager 26 MW of solar power in 2016 to an extra over 1 gigawatt in just five years, going from a meager 26 MW of solar power in 2016 to an extra over 1 gigawatt in just the previous year. This rapid the previous year. This rapid growth bodes well for the country's chances of meeting the ambitious growth bodes well for the country's chances of meeting the ambitious target of 6 GW of solar power over the next five years, as outlined in the 2030 National Energy target of 6 GW of solar power over the next five years, as outlined in the 2030 National Energy StrategyStrategy (Wolniak and Skotnicka(Wolniak and Skotnicka--Zasadzień, 2022)Zasadzień, 2022). The Hungarian arm of the German energy . The Hungarian arm of the German energy giant E.ON announced plans to invest a whopping €190 million ($201 million) on grid giant E.ON announced plans to invest a whopping €190 million ($201 million) on grid infrastructure upgrades and solar panels in January. The European Union is supporting this project infrastructure upgrades and solar panels in January. The European Union is supporting this project to increaseto increase the grid's capacity by 700 MW by 2026. Similarly, MVM Group, a the grid's capacity by 700 MW by 2026. Similarly, MVM Group, a statestate--owned firm, owned firm, and Opus Titász, a gas supplier owned by Switzerland, have announced intentions to spend HUF and Opus Titász, a gas supplier owned by Switzerland, have announced intentions to spend HUF 96.6 billion ($258 million) 96.6 billion ($258 million) onon the grid the grid toto increase Hungary's solar capacity.increase Hungary's solar capacity.2.5.2.5. Future of Solar BuFuture of Solar BusinesssinessSmith and Urpelainen (2014) evaluated thatSmith and Urpelainen (2014) evaluated that The future of the solar business in Hungary remains The future of the solar business in Hungary remains uncertain due to conflicting rules and regulations, despite these positive indicators. Because of uncertain due to conflicting rules and regulations, despite these positive indicators. Because of16insufficient network capacity, Hungary prohibited licensing for solar installations above 50 kW ininsufficient network capacity, Hungary prohibited licensing for solar installations above 50 kW in April 2021. Below this level, gridApril 2021. Below this level, grid--connected household selfconnected household self--consumption arrays might be installed consumption arrays might be installed toto emphasize the significance of distributed energy generation. Commercial arrays may still get emphasize the significance of distributed energy generation. Commercial arrays may still get the green light, but they're limited to selfthe green light, but they're limited to self--consumption and often come with energy storage options. consumption and often come with energy storage options. Solar business owners and financiers face more uncertainty anSolar business owners and financiers face more uncertainty and complexity as a result of this d complexity as a result of this regulatory structure. Thregulatory structure. The solar industry is on an optimistic trajectory overall, but the ban on permits e solar industry is on an optimistic trajectory overall, but the ban on permits for larger solar plants can slow down or perhaps halt the expansion of solar projects in Hungary. for larger solar plants can slow down or perhaps halt the expansion of solar projects in Hungary. However, utilityHowever, utility--scale solar projects that aim to significantly influence the scale solar projects that aim to significantly influence the country'

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Kulcsszavak:	energetika, energia, energiafelhasználás, energiaforrások, Magyarország, megújuló erőforrások, napenergia
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Rekord készítés dátuma:	2024. Szep. 26. 08:02
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