Jump to main content

Research and projects

2022-2026

OTKA: How can household energy demand be made climate-neutral without carbon pricing? Empirical analysis of critical characteristics of household energy demand in terms of decarbonization and price regulation in Hungary

OTKA K – 143311 (1 October 2022 – 30 September 2026).

The aim of the research
The main objective of the research is to determine the elasticity of Hungarian residential energy demand. We empirically examine changes in the consumption of the main household fuels as a function of household income and changes in the prices of fuels. The issue is particularly relevant given that, after almost a decade of price controls, above-average residential electricity tariffs have doubled double and gas tariffs increased sevenfold in 2022. The extent and nature of household adaptation will be decisive for climate policy ideas aimed at carbon pricing for household energy.

Research tasks and methodology
We are working on interrelated research tasks that contribute to a complex, new understanding of household energy demand in Hungary: What flexibilities characterize households’ demand for firewood, electricity, and natural gas? Firewood as a normal and inferior consumption good. (Statistical and econometric analysis of Hungarian Statistical Office data, census data, and our own representative questionnaire-based data collection.) Integrating new knowledge about household energy demand into economic modeling frameworks. (Incorporating new knowledge about the residential building stock and the elasticity of household energy demand into a partial energy sector model – HU-TIMES). Dissemination of results (workshops, conferences, journal articles)

Integrated development of residential building stock and electricity models and analysis of decarbonization scenarios

The aim of the project is to model two interacting processes in an iterative cooperation. The main consortium proposal is to further develop the existing bottom-up Residential Building Stock Model (RBSM) of the BME EPGET Department. The existing model is capable of analysing the energy use and the impacts of renovation alternatives for existing residential buildings with limits.

The other model (European Power Market Model-EPMM) will be further developed by the consortium partner Corvinus University, also building on their existing model aiming at the analysis of future electricity mix scenarios.

Investigating the combined effects of the two sectorial models will require well-coordinated, iterative apporach, and collaboration between the two disciplines. The project will provide a more accurate picture on the decarbonisation process of the building stock and the electricity mix than is currently possible.

2020

Providing modelling support for the National Clean Development Strategy of Hungary

National Clean Development Strategy is a strategic document that all the Member States have to carried out, demonstrating how the 2050 GHG net zero emission target can be reached. REKK provided modelling support and leading the development of low-carbon scenarios (policies/technologies options). The modelling support includes the integration of HU-TIMES model to a macro-economic model – GEM – and simulations of alternative scenarios with HU-TIMES models. REKK set-up, analyzed three different scenarios – a business as usual, and two alternative decarbonization scenarios – and quantified the main results of the energy sector modelling, including the additional cost, the mix of the energy consumption in the different subsectors and the GHG emissions.

2019

Development of the HU-TIMES model

The main objective of the project is to elaborate a country-specific modelling system for Hungary based on the TIMES modelling system which will serve as a basis for the National Energy and Climate Plan (NECP) of Hungary, fulfilling EU reporting requirements. 
The model covers the energy sector of Hungary, including the energy transformation sectors, energy related processes of the industrial sectors, transport and building related energy services of households and the tertiary sectors. The projections cover the period until 2050, also elaborating milestones for 2030 which are in line with 2050 ambitions. 

The TIMES model can serve as a central part of the overall national energy and climate modelling system, that could be linked to other models and estimations, e.g. related to the LULUC sector, agriculture etc.

2018

Cost estimation for achieving the renewable target in 2030

The focus of the study is renewable energy based power sources in Hungary. First, we estimate the potential of the different technologies, then we calculate the costs associated with exploiting these potentials. We center our study around innovative technologies, we neither analyse residential firewood usage nor renewable based heating energy except for solar panels, heat pumps and district heating. Our aim is to provide support for the Hungarian government to set a renewable target for 2030 which is achievable with realistic associated costs. For this reason, we present an aggregated cost curve of renewables for 2030. This curve shows the need for support in order to increase renewable energy use for all the investigated technologies. We only estimate the cost of reaching the aggregated renewable target values and do not consider the renewable based transportation targets separately. However, our work provides several guidelines associated with green transportation too.

Copied to clipboard
×