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The Primary Factors Of The National Strategy For Utilising “Green Energy” (Biomass) By Incineration Technology

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  • Gergely, Sandor

Abstract

On the basis of the current trends we can state that green energy production is becoming increasingly important in the utilisation of agricultural areas. In our paper we compare the characteristics of land utilisation by energy forests, energy grass, energy hemp, and china reed (Myscanthus gigantheus). The analysis is based on market position, equity requirements and profitability, the effects on the national economy and/or on a particular region, as well as the environmental and social effects. We have established that plants that can be used as raw materials for green energy can achieve an increasingly favourable market position. The Economic Strategy based on the National Strategy and as a part of it, the Energy Strategy, which is still to be developed, could lay the foundation of the development of the national strategy for utilising “green energy” (biomass) by incineration. Hungary lacks fossil energy resources but has a vast amount of renewable energy sources. We have a better than average solar energy supply, wind-power is average or weaker in some places. Due to the location of Hungary and the climatic conditions and natural features of the neighbouring countries our hydro-capacity is worse than average. We have exceptionally favourable geothermic potentials, which have been poorly exploited. We have the greatest reserves in green energy (biomass), and this holds true of all three methods of utilisation. Due to the extensive nature of the subject we have to leave out biogas and motor-fuels and focus solely on the National Strategy concerning utilisation by incineration. Of the factors of bulk production and use of green energy we will lay particular stress on the price of fossil fuels, the increased dependence of the national economy on the international energy markets, the necessity of a comprehensive national green energy programme, the absolute necessity of favourable EU and national economic regulations, and, on a micro level, the cooperation of biomass producers and energy users. A successful national green energy programme cannot be created without coherent legal and economic regulations whose characteristic features are as follow: predictable regulation for a period of at least 10 years, and the creation, imposition, and guarantee of the conditions for prolonged cooperation between producers, suppliers, and consumers. The regulations will have to create and support systems operating with stable internal balances, which distribute the proceeds of the whole verticum between the participants in direct proportion to work, capital, and risk. The actors of the national green energy programme are the cluster centre, the land and forest owners, the permanent leaseholders, service providers, and the scientific and local government background. Apart from alleviating energy dependency, the national green energy programme produces a number of favourable effects in agriculture and rural development. Among other effects it can reduce developmental differences between regions, provide employment, and help to establish a new production culture. The implementation of a coherent national green energy programme prepared by the government and created by the National Assembly could be a valid answer to future energy challenges.

Suggested Citation

  • Gergely, Sandor, 2006. "The Primary Factors Of The National Strategy For Utilising “Green Energy” (Biomass) By Incineration Technology," GAZDÁLKODÁS: Scientific Journal on Agricultural Economics, Karoly Robert University College, vol. 50(Special E), pages 1-9.
  • Handle: RePEc:ags:gazdal:141145
    DOI: 10.22004/ag.econ.141145
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