July 2020 – On 18 June 2020 the Hungarian Ministry of Innovation and Technology (“Ministry”) announced that the Ministry requested the Hungarian Energy and Public Utility Regulatory Authority (“HEPURA”) to launch the second public tender procedure under the Hungarian Renewable Energy Support Scheme (“METÁR”). The actual launch of the second METÁR tender is expected in July 2020.
According to the Ministry’s announcement, the total amount of subsidy to be distributed under the second METÁR tender is HUF 800 million per year and the limit for the distributed capacity rights will be 390 GWh/year.
The bidders will be entitled to apply for subsidies in the following categories:
by power plants below 1 MW capacity, where the limit for the distributed capacity is 40 GWh/year (“Small Category”)
by power plants between 1 MW and 49.99 MW capacity, where 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. Similarly to the first METÁR tender, the commercial operation of the beneficiary plants must start within 3 years of the date of issuance of the HEPURA’s resolution on granting the METÁR entitlement.
Although the second METÁR tender is also declared as a technology-neutral tender (i.e. the tender is not limited to certain specific technology), considering the results of the first METÁR tender, solar power plants are expected to dominate the second tender. Upon reflection by the Ministry of the outcome of the first METÁR tender, the Ministry has decided to increase the upper limit in the Large Category from 20 MW to 49.99 MW, which is likely to attract more investors. The Ministry’s announcement does not specify the bidding price limit.
In the first METÁR Tender, the majority of bids came from small and medium-sized enterprises, with no bids coming from large market players on the Hungarian energy market. In light of the increased upper limit in the Large Category, the second tender may attract more significant interest from the side of the larger market players.
According to the Ministry, further five METÁR tenders are expected to be announced by August 2022. The HEPURA will announce such further METÁR tenders on a half-yearly basis, with a distributed capacity in the range of 300 to 500 GWh.
For more information please contact Kristóf Ferenczi, Firm-wide Head of Energy & Natural Resources, Managing Partner Kinstellar, Budapest, at .
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