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New renewable energy storage support scheme in Hungary

The Government of Hungary has recently passed legislation regarding Hungary’s approach to renewable energy storage, introducing significant changes aimed at creating a more favorable environment for energy storage providers. MAVIR held a forum on 30 August 2023 to discuss the new framework, providing important insights on the changes. Find out more about the new renewable energy storage support scheme below.

Establishment of the CfD type Revenue Compensation Support System

The Hungarian government has initiated a revenue compensation support system specifically for electricity storage.

Eligibility & Transmission System Operator (TSO) Agreement

Electricity storage operators are required to enter into an agreement with the transmission system operator prior to commissioning their storage systems.

Revenue Compensation Calculation

Compensation will be based on the net revenue claimed by the supported electricity storage in a specific tendering process, and the difference from a reference net revenue, as detailed in a regulation to be issued by the Hungarian Energy and Public Utility Regulatory Authority. This regulation has not been published yet.

Application through a Tendering Process

Eligibility for this compensation will be determined through a competitive tendering process. The government will identify the entity responsible for organizing this process. The tender has not been published yet.

Key takeaways from the MAVIR forum held on 30 August 2023

  • The publication of the tender is expected in mid-September 2023.
  • The tender will be open for application for 8 weeks.
  • The regulation setting out the rules for calculation of the reference net revenue is expected to be published in a way that applicants should have at least 4 weeks to submit their application after the publication.
  • Q2 2026 is expected to be set as the deadline for completing the storage project.
  • The tender is expected to be open up to overall 400 MW capacity.
  • Recent change to the operational code of the TSO allows the change of the grid connection from PV to storage project, but it will only be certain in the tender whether projects with PV connection right are entitled to apply to the tender.

In essence, this legislation underlines Hungary's commitment to foster and support advancements in renewable energy storage, ensuring that stakeholders are adequately compensated and that the process is transparent and fair. We expect that the uncertainties will be answered in the final tender documentation.

Our team is available to provide guidance on how to navigate and benefit from this new framework.

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