Sustainable energy transition initiatives 📍 PéCS, HUNGAry

The city of Pécs, located in the South-Western part of Hungary, has been firmly committed to a climate policy, driven by a clear sense of purpose. In Pécs, which has almost 140 000 inhabitants and is the fifth largest city in the country, the two largest emitting sectors are buildings and transport, including private transport.

The city reported an overall annual CO2 emission baseline of 469 kilotons (kt) in 2021. To address environmental concerns, Pécs has committed to a substantial reduction target. The city aims for an 80% decrease in emissions by 2030 compared to the 2021 levels, therefore saving 325 ktCO2. Additionally, Pécs plans to implement emissions offsetting strategies to achieve carbon neutrality by the same year.

The largest share of Pécs emissions is accounted for by transport (35%), followed by electricity (32%) and the carbon impact of heating buildings (25%).

District heating solutions in Pécs

The district heating system uses predominantly renewable sources to meet heat demand, which is already 95% carbon neutral.

This is possible today because Pécs power plant underwent phased conversion to biomass and natural gas as part of a strategy to shift away from coal and hydrocarbons. The plant's transformation aimed to comply with EU regulations and decrease CO2 emissions.

This conversion involved utilising forest wood chips, agricultural by-products, and Solid Recovered Fuel (SRF) for energy generation, with phases completed in 2004 and 2013. After this transformation, the city achieved a significant reduction, surpassing 450,000 tons of annual CO2 emissions compared to previous coal-based operations.

What were the key drivers supporting the implementation?

  • Economic: Increasing fossil fuel prices and CO2 taxes influenced the shift towards green energy initiatives.
  • Social: There's a growing demand for green energy among the populace, contributing to the impetus for change.
  • Technical: The existing infrastructure of the plant allowed for conversion to more sustainable energy sources.
  • Legal: Strict EU emission regulations set the framework for reducing carbon emissions, contributing to the project's direction.

And which were the challenges and barriers?

  • Political: The presence of a 41% extra-profit tax posed a hindrance to the project's financial aspects.
  • Economic: Challenges included high inflation rates and a highly volatile energy market, impacting financial feasibility.
  • Social: Public sentiment posed a challenge as waste incineration, part of the project, wasn't universally popular among citizens.
  • Technical: Converting existing plants like Pécs faced challenges compared to constructing new green field installations.

Potential for replication

The project in Pécs demonstrates potential for both entire replication and partial upscaling, particularly in aspects related to renewable energy integration, such as biomass and solar energy, district heating systems, waste management, and the involvement of diverse stakeholders in sustainability initiatives.

The plant itself is a scaled up version of several other examples in the EU. The etalons for the biomass conversion were smaller scale biomass boilers, plants. RDF and waste incineration plants are quite common in Europe, especially in Germany, Czech Republic and northern countries. Mixing SRF to biomass in BFB boilers is common in Denmark and Finland.

Preconditions for replication may include a stable fuel source, district heating nearby, electrical grid, cooling water source, good road infrastructure.

Lessons learned and recommendations

Operating biomass power plants requires better technical knowledge and adaptability to fluctuating fuel qualities, compared to natural gas plants.

Implementing waste-to-energy solutions requires special materials in certain parts of boilers due to highly corrosive flue gas. Boilers may wear out faster compared to conventional fuels.

Visiting other sites in operation, and communicating with the experienced operation personnel may be helpful in speeding up such projects, and could help in avoiding major obstacles that may arise.