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New opportunities in biogas and biomethane production in Hungary
Sustainable energy production is playing an increasingly significant role in Hungary’s energy policy. As part of this initiative, the Hungarian government’s recently launched Jedlik Ányos Energy Program plans to support a total of ten projects with a focus on investments in biogas and biomethane production. A draft tender related to biogas and biomethane production has been published for public consultation. The program will allocate a total of HUF 40 billion (approximately EUR 100 million) to cover the entire process—from raw material collection to the further utilisation of residues and by-products—including infrastructure investments and equipment procurement. Out of this total, HUF 18 billion is to be designated
Immediate amendment to feed-in-tariff prices in Hungary
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
Understanding Hungary’s Guarantee of Origin: A new era for renewable gas
Stay competitive in Hungary’s evolving energy market by understanding the Guarantee of Origin, a crucial certification now available for renewable gas. This change could open doors for businesses focused on sustainability and compliance. Earlier this year, the amendment to the Act XL of 2008 - Natural Gas (the “Natural Gas Act”) brought a significant shift: the introduction of a Guarantee of Origin for renewable gas, similar to what we have seen in the electricity market. The guarantee of origin is an electronic document designed solely to certify, using objective, transparent, and non-discriminatory criteria, that a given share or quantity of gas produced by a specific generation unit qualifies as renewable
Attention, Real Estate Developers and Energy Professionals in Hungary! The legal framework of the world behind the meter has arrived!
As of 1 January 2024, material amendments to several Hungarian energy laws have come into effect, including, among others, the Hungarian Electricity Act (Act LXXXVI of 2007), which has been significantly changed. These changes materially affect decentralised (local) power generation, which has been a focus of the real estate industry in recent times. Below we provide an overview of the main changes in Hungary that may facilitate local power generation, storage, and procurement from electricity sources other than power traders. The long-awaited change to the concept of a private power distribution line (in Hungarian: magánvezeték), based on the EU’s definition of a “closed distribution system,” ensures the appropriate
EU publishes new regulation on alternative fuel infrastructure
At the end of September, the long-awaited Regulation (EU) 2023/1804) on the deployment of alternative fuel infrastructure, and repealing Directive 2014/94/EU (“AFIR”) was published in the Official Journal of the European Union. Though the entry into force of AFIR is 13 April 2024, it is worth reviewing the key takeaways that the AFIR introduces as part of the EU’s Fit for 55 package. The AFIR sets binding national targets for the development of adequate EU alternative fuel infrastructure. The new regulation also establishes common technical specifications and requirements regarding the information to vehicle users for the provision of data and payment requirements. The AFIR includes detailed regulations regarding
Long term renewable power purchase agreements with renewable energy generators
The sale of the generated electricity by renewable energy generators through market-based long-term power purchase agreements (PPAs) is a fairly new phenomenon in the Hungarian electricity market. Whilst PPAs have already been concluded between conventional power plants and off-takers in the past, the interest towards renewable PPAs has only started to increase recently, primarily for the following reasons: Firstly, over the last few years the economics of renewable energy generation has substantially improved, and renewable energy generation has become more and more competitive with conventional forms of power generation. Secondly, the governments started to gradually phase out many of the formerly existing “old school”