July 2020 – On 15 July 2020, on the basis of the request of the Ministry of Innovation and Technology (“Ministry”), the Hungarian Energy and Public Utility Regulatory Authority (“HEPURA”) launched the second tender procedure of the Hungarian Renewable Energy Support System Scheme (“METÁR”). The tender invitation (“Tender Invitation”) with the supporting template documents and further detailed information is now available at the website of the HEPURA.
According to the Tender Invitation, the total amount of subsidy distributed is HUF 800 million per year and the limit for the distributed capacity is 390 GWh / year.
The bidders will be entitled to apply for subsidies in the following categories:
power plants between 0.3 MW and 1 MW capacity the limit for the distributed capacity is 40 GWh / year (“Small Category”);
power plants between 1 MW and 49,99 MW capacity the limit for the distributed capacity is 350 GWh / year) (“Large Category”).
The subsidy available to bidders belonging to the same beneficial owner is maximized in 15 GWh / year in the Small Category and 175 GWh / year in the Large Category.
The bidding price limit is HUF 26.70 / kWh. Any bids beyond the aforementioned price are deemed to be invalid. A bidder may be a company with registered seat in the EU, EEA or in the Energy Community, or an economic operator having its registered seat, permanent establishment or branch in Hungary, or a municipality.
In order to participate in the tender, the bidder has to provide a tendering security in an amount of 1.5% of the investment value calculated according to the Tender Invitation. The tendering security has to be submitted in the form of a bank guarantee on the basis of the templates attached to the Tender Invitation. In case of a winning bid, a performance security has to be provided by the bidder in the amount of 5% of the investment value.
The commercial operations of the plants must start within 3 years from the date of the issuance of the resolution of the HEPURA granting the METÁR entitlement and the premium subsidy can be granted for a duration of 15 years.
The tender is scheduled between 15 September, 2020 00:00 and 15 October, 2020 23:59, the latter date is the deadline for submission of bids. The bidders are entitled to submit their proposals through a specific e-governance platform.
The relevant legislation sets out several eligibility conditions which the bidder shall comply with (such as no tax debt towards the tax authority, no criminal measures imposed against the bidder, transparent entity from taxation and money laundering perspective etc.). If the bidder does not comply with such restricting conditions, it shall be disqualified in the tendering procedure. We highlight the following two main preconditions which have to be fulfilled by a bidder:
(i) Network connection: as a minimum requirement the bidder has to evidence the network connection right of the PV Project through the technical and economic offer regarding the network connection (in Hungarian: “műszaki gazdasági tájékoztató”) which is issued by the competent DSO. The offer has to be valid when submitting the bid. It is also possible to submit the network connection contract if already available.
(ii) Location of the PV Project: the bidder shall specify in its bid the planned location of the PV Projects by indicating the topographical lot numbers and the EOV coordinates.
For more information please contact Kristóf Ferenczi, Firm-wide Head of Energy & Natural Resources, Managing Partner Kinstellar, Budapest, at .
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