ORKA Description

KS Orka Renewables Pte Ltd, (KS Orka), a subsidiary of Zhejiang Kaishan Compressor Co., Ltd is constructing a geothermal power plant in Budapest, Hungary.The project involves the construction of a 40MW geothermal power plant. It includes the construction of a powerhouse, a substation, access roads and related infrastructure, the installation of turbines and generators, and the laying of transmission lines.Mannvit Engineering has been appointed as the engineering consultant.As of August 2018, planning activities are underway. Read More

The Hungary Geothermal Energy Market is experiencing robust growth, fueled by a compound annual growth rate (CAGR) exceeding 10% from 2019 to 2033. This expansion is driven by increasing government support for renewable energy initiatives, aiming to reduce reliance on fossil fuels and meet carbon emission reduction targets. The rising demand for sustainable power generation and district heating solutions, coupled with advancements in geothermal technology making extraction more efficient and cost-effective, are key drivers. The market is segmented primarily by application, with power generation and district heat utilization being the dominant sectors. While specific market size figures for Hungary aren't provided, considering a global market size and CAGR above 10%, a reasonable estimation for the Hungarian market in 2025 would be in the range of €50-€100 million, considering the country's size and energy consumption patterns. This segment is expected to see significant growth during the forecast period (2025-2033), driven by ongoing investments in infrastructure development and technological innovation. However, the market's growth trajectory may face some challenges. Potential restraints could include initial high capital investment requirements for geothermal projects, regulatory hurdles, and the geological suitability of specific locations. Despite these challenges, the long-term prospects for the Hungarian geothermal energy market remain positive, given the increasing global focus on renewable energy and the country's favorable geothermal resources. Key players such as Mannvit, PannErgy PLC, and others are actively shaping the market landscape through their innovative projects and technological advancements. The market's future success hinges on continued policy support, technological improvements, and overcoming the inherent challenges of geothermal energy development. Recent developments include: In October 2022, the Hungarian government announced plans to support the upscale of domestic geothermal energy, which can reduce the country's energy dependence by replacing about 1-1.5 billion cubic meters (bcm) of natural gas annually., In August 2022, a geothermal heating network would be built with 27 wells, 16 heating plants, and 250 kilometers of distribution pipe network in the city of Szeged in Hungary. Upon completion, this project will be the most extensive geothermal urban heating system outside Iceland.. Notable trends are: Increasing Demand for Alternative Clean Energy Sources Expected to Hinder the Market.