Hungary to Open Doors for New Power Plant Projects
Project News | Mar 06, 2025 | CEE Legal Matters
Hungary is set to address its growing energy needs by facilitating the development of additional power plant and battery capacities, despite having achieved its solar power target of 7.5 GW earlier than expected. As part of this strategy, the state-owned MVM aims to develop new power plants, but significant private investment is still needed. The rapid expansion in photovoltaic (PV) installations, however, has nearly saturated the grid, prompting legislative changes. New competitive tenders will be introduced for grid capacity allocations, with a focus on projects that include battery or balance capacities and those with less environmental impact. The Hungarian Energy and Public Utility Regulatory Authority (HEA) will oversee this process, with tenders conducted biennially. Applicants will need to provide financial guarantees, further details of which, along with scoring criteria and other tender conditions, will be outlined in future notices. The first tender is anticipated by summer, with results expected by the end of 2025.
Sectors
- Energy
- Renewable Energy
- Legal and Regulatory
Geography
- Hungary – The article discusses legislative changes and power capacity developments specific to Hungary.
Industry
- Energy – The article focuses on Hungary's need for additional power plant capacity, including solar, nuclear, and gas turbine energy production.
- Renewable Energy – The article discusses solar power capacity and the need for new generation capacities with a preference for balancing capacities.
- Legal and Regulatory – The article details legislative responses and a new grid capacity allocation system developed by Hungarian lawmakers.
Financials
- N/A – The article does not specify any particular financial figures but does mention that financial guarantees are a requirement for applicants.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| MVM | Power Plant Developer | Company | MVM is the state-owned incumbent developing new combined cycle gas turbine installations and nuclear blocks. |
| Hungarian Government | Regulator | Government | The Hungarian Government is responsible for creating the new grid capacity allocation regime. |
| Hungarian Energy and Public Utility Regulatory Authority (HEA) | Regulator and Evaluator | Government | HEA is responsible for overseeing tender evaluations and setting capacity allocation rules. |
| Ministry of Energy | Policy Maker | Government | Responsible for publishing detailed rules on the new grid capacity allocation system. |