February 2025 – Effective 31 January 2025, Government Decree No. 7/2025 has revised the feed-in-tariff rates for renewable power plants that are part of the feed-in-tariff (“FiT”) system in Hungary. The Decree took effect on the day it was announced, making it currently enforceable and applicable.
The key amendments are outlined as follows:
- Starting in 2025, the annual indexation for FiT power generators will be discontinued until the state of danger declared in relation to the war in Ukraine concludes, but no later than 2029.
- The exception to the above rule is if the annual average inflation in Hungary exceeds 6%.
- FiT power generators will no longer be subject to the “Robin Hood” tax applied to energy and public utility suppliers in Hungary.
The above changes can seriously affect the business plans of FiT power generators, as the prices paid by MAVIR, the Hungarian transmission operator, as the purchase price for renewable electricity will not follow the indexation of the purchase price based on the current (last) annual consumer price index for the current year, as last published by the Central Statistical Office (minus an efficiency improvement factor of 1%).
The above could result in necessary amendments to business plans as well as to financing documents and other agreements.
For more information on the new regulation, including specific, project-related legal advice, please contact Péter Gullai, Managing Associate. Our team will be happy to provide further details on the new regulations.