The Hungarian Ministry of Energy informed about various measures and opportunities that are expected to drive the uptake of green energy in the country in 2024. The government considers the further expansion of renewables essential not only for energy sovereignty and supply security but also for strengthening domestic competitiveness and promoting economic growth.
Hungary experienced significant growth in solar power last year. The annual expansion of solar capacity surpassed 1 gigawatt (GW) for the first time last year, which exceeded the 2022 record growth by more than one and a half times, informed the ministry. Of the now nearly 5600 megawatts (MW) of capacity, approximately two-thirds belong to industrial facilities, and one-third to household facilities. Over a quarter of a million smaller systems, mostly operated by families, are now functioning in Hungary. Last December, the government launched Solar Energy Plus Programme supporting families with the installation of modern solar systems.
Separately, the government will launch a call for applications in mid-January that encourages domestic companies to set up and operate energy storage facilities for at least ten years. Successful applicants in the call will be eligible for non-repayable investment grants and income compensation. With the allocation of the 62 billion forints (162 million euros), the current industrial energy storage capacity of just 20 MW could increase twenty-fold by spring 2026. The expansion could also be boosted by tariff rebates combined with tender support. Operators will be exempted from paying the transmission part of the system charges until 2026. Connection fees will also be halved for industrial investors who apply to connect their new storage facilities in the second publication procedure launched at the end of November 2023.
Hungary is also set to ease the regulatory framework for wind turbines. From 2024 the required safety distance will be reduced to 700 meters, following European practices, and competitive bidding requirements will be eliminated. The legislative amendment eliminates the existing tendering requirements and abolishes restrictions on the number of permits for wind turbines and the permissible total capacity. The provisions also include strong guarantees for enforcing considerations related to settlement, environmental, agricultural, and landscape protection. Hungary’s National Energy and Climate Plan under review anticipates tripling the current 330 MW of wind turbine capacity by 2030.
Hungary has been among the top five countries in Europe for the use of geothermal energy for heating for many years, informed the ministry recalling that this spring, the largest geothermal heating system in the European Union was inaugurated in Szeged. Thanks to favorable domestic conditions, geothermal energy may be suitable for replacing up to 1-1.5 billion cubic meters of gas consumption annually according to forecasts. The Ministry of Energy is preparing a geothermal strategy, which will specify concrete support proposals in addition to mapping out further opportunities in geothermal.
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