place of investment Hungary - Kistelek town, Center of Kistelek area, Southern-Plain region
installed capacity (kw/mw) 3,11 MW
project cost (gross, in HUF) 482,878,580 HUF
project type Communal: 100% municipal
number of users of generated energy 8 public institutes (approx. 1200 persons)
type of energy resource replaced Natural gas
start of operation 6'th June 2007
financial sources Environment Protection and Infrastructure Operational Programme
Ministry of Interior, Own Contribution Fund
ownership structure 100% municipal
investor Municipality of Kistelek
contractor Aquaplus Ltd.
THE PROJECT

The municipality of Kistelek had decided in 2002 to utilize the geothermal fortune underground step by step to cope with the increasing energy prices. The milestones of the project were as follows:
2003: Planning, preparation phase
2004: Reconstruction of the well, ensuring water supply of the multifunctional building (heating and balneology use), without back-pressure
2005: Submitting proposals, organizing financing
2006: Preparation of public utilities
2007: Connecting the public institutes to the system, operation of the back-pressure well
This geothermal utility system ensures the heating of 8 public establishments, among many supplies the surrounding areas as well. The system is connected to four educational institutions, one health care facility, one twilight home, and one hotel with its own services.

TECHNOLOGY

The installed power supplies the different heat demand of the establishments between 100 kW (kindergarten) and 800 kW (twilight home). The communal warm water is also produced by this system with a 50–100 kW heat exchanger. Furthermore the discharged water is used in the thermal bath (balneology) in the multifunctional facility. The discharging well is 2095 m deep, the temperature of the thermal water is 90,6 °C. Depth of the back-pressure well is 1678 meter, the temperature of the water in such depth is 71,5 °C. The pre-calculated maximum heat demand of those establishments that are connected to this geothermal system is around 4 MW, therefore the traditional gas boilers were also kept for emergency. The life span of the geothermal utilities is 15–50 years, which exceed far beyond the forecasted pay back period. The automatic control system continuously provides data on the operation thus helping the work for future development.

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ECONOMIC ASPECTS

Based on the calculations done at the gas prices of 2004 the pay back period of the investment is 8–9 years. While the pay back of the energy saving is 7–8 years. However, today this period is estimated shorter due to the increasing tendency of gas prices. The project was co-financed from EU sources. The structure of financial resources:
-Subsidies
Environment Protection and Infrastructure Operational Programme: 60% (288 133 649 HUF)
Ministry of Interior, own contribution fund: 24% (116 846 959 HUF)
-Bank loan: 16% (77 897 972 HUF)

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SOCIAL EFFECTS

Having reduced the costs of the public establishments resulted indirectly in the retention of the employment rate: directly 10 people’s, indirectly 40 people’s workplace. Needless to say, that the realization of the thermal bath contributes greatly to the touristic attraction of the area. From the initial phase of the project the local media has published coverage on the project in the local newspaper (Kisteleki Hírmondó) and on the local television. Even the domestic media reported on the project comprehensively, so many visitors – mostly representatives of municipalities - interested in the public utility system arrive here. Besides, a positive side effect of the project, that the town hosts an international geothermal conference of great popularity every year.

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ENVIROMENTAL EFFECTS

The geothermal energy replaces 34,265 GJ energy annually produced by natural gas before. By reducing the fossil energy sources the amount of emitted greenhouse gases fell significantly: 1,38 kt CO2, 23.28 kg CO-t and 66.25 kg NOx annually is replaced. Thanks to the investment one can appreciate the much cleaner air of the town.

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DIFFICULTIES, PROBLEMS

A great deal of effort was devoted to obtaining permits during the project, as the authorities did not keep the deadlines set by the law. Even the public procurement procedure took longer than it had been planned. In the course of implementation another difficulty was that the geothermal system was connected to the existing heating system (as the pay back period of the mechanical engineering would have been much longer), so the contracted firm (Magmaplus Ltd.) responsible for the operation had to agree on the maintenance of the existing mechanics as well.

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FOLLOW UP

Based on the one and a half year experience of the operation, it seems that the system still holds 20% reserves, so an opportunity has come up for supplying the municipality, the church and the parsonage with geothermal energy. Today, one can think of several opportunities how to use the remaining water at 40 °C, for example using for balneology, floor heating, heating a greenhouse for gardening, or for the establishment of a visitors’ park for presenting village life.

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FURTHER INFORMATION

Mr. Mr. Péter Kácsor
Project leader
E-mail

Ms. Ms. Orsolya Darabos
Financial manager of the project
E-mail

Mr. Csaba Lajkó
E-mail


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Examples to Follow - Successful and Sustainable Energy Investments in the Central-Eastern and South-Eastern European Region - Energia Klub
2009