The Abbey of Pannonhalma celebrated its millennium in 1996. The monks never looked back, and already have the next 1,000 years in mind.

 

Before winter sets in, the picturesque hilltop Abbey will get its own heating plant that runs on wood refuse from a nearby forestry and plant debris from local farms. It will nearly halve energy costs while cutting fossil fuel usage.

The plant is just the sort of power supply - small, local and renewable - that experts say is best for sustainable energy. Still, similar projects are rare, reflecting problems with Hungary's EU commitment to green power. The European Union has set out to increase the share of renewables in its energy mix to 20 percent by 2020. Member states share that commitment to varying degrees; Hungary must increase its own eco-energy total to 13 percent from the current 5 percent. Hungary's Energy Ministry expects more than two-thirds of that growth to come from new biomass plants - those that burn exactly the kind of fuel as the Pannonhalma monks will.

 

So far, Hungary has deployed biomass on a large scale, converting coal-burning electrical plants to accept wood fuel as well. But the transition has reached its limits, as experts say biomass is inefficient when burned for electricity production.

 

"Its efficiency is dismal. Three quarters of the energy goes to waste," said Gyorgy Szerdahelyi, head of the energy ministry's renewables unit. "To improve, each plant should sell the heat, too, but few have customers for it so far."

 

"Also, a steady supply of fuel would mean burning wood from forests," Szerdahelyi said. "But people don't like the idea of increased logging, although we grow more than enough wood."

 

Not surprisingly, applications for new biomass plants have dried up in recent years. Many of the last few were denied permits. Six projects got the green light. One has come online.

 

"Local energy production is nowhere near the level it could be at," said Katalin Varga, a renewables expert at the nonprofit Energia Klub, blaming convoluted regulations for the lag.

 

"It's very difficult to satisfy all permission criteria and every authority," she added. "Many investors get scared off."

 

The monks of Pannonhalma could vouch for that. It took them the better part of two years to get the paperwork in order for the 366 million forint ($2 million) project.

 

Once done, they erected the building in five months.

 

RAINWATER FOR LAVENDER

 

The project focused on heating, which is very economical to produce. The investment pays for itself in about eight years, while the boiler is calibrated for 25 years.

 

Producing hot water is next, Beck said. They will solve that soon. Electricity, however, is mostly beyond their reach.

 

The monks plan to cover the roof of the biomass plant, as well as the visitor center, with solar panels -- but that will not producer nearly enough, never mind cheap, electricity.

 

Solar energy is hardly viable without state subsidies, and the government is uneasy about pouring more money into it.

 

"We need to focus our efforts where they make most sense," said the ministry's Szerdahelyi. "Currently that's with wind."

 

Hungary plans to spend heavily on wind power, increasing its current capacity fivefold by 2020; but the Abbey, with its limited space and protected views, is unlikely to participate.

 

Instead, they will go even greener by recycling almost all of their waste, or using rainwater at their herb farm.

 

"We need soft water to make our lavender products," Beck said. "Rainwater from the roof of the heating plant is perfect for that. We've already bought the containers to collect it."

 

(Reporting by Marton Dunai, editing by Paul Casciato)

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