Parliamentary State Secretary of the Ministry of Energy speaks about the €435 million electricity network improvements.Continue reading
According to the Ministry of Energy, the Hungarian storage capacities that improve the flexibility of the electricity system may increase from the current 20-25 to 1,000 megawatts by 2030. The government also plans to stimulate the investments of the sector players in two separate calls for tenders with a total budget of HUF 120 billion (EUR 320 million).
The statement stressed that the European Commission, on the basis of the decision announced on Wednesday, recognizes the soundness and eligibility of the development intentions.
The storage investments will help to implement a low-carbon energy economy and to create Hungary’s energy sovereignty.
The deployment of battery energy storage will partly offset the natural variation in the output of weather-dependent renewables. The recently approved EU program can therefore make a significant contribution to the increased use of clean energy sources. At the same time, the developments could reduce the regulatory costs for the system operator, said the ministry.
One of the two separate calls for proposals is already open, with system operators and distribution companies able to submit their bids for the HUF 58 billion (EUR 160 million) earmarked for them in June. Funding decisions are expected by autumn this year.
The developments, which will be completed by summer 2025 at the latest, will have a total storage capacity of 146 megawatt hours (MWh), the Ministry emphasized.
Another tender for a wider range of industrial companies is also about to be launched, with a planned budget of HUF 62 billion (EUR 170 million). The funds available could be used to support the development of market players in the form of non-repayable investment aid and non-repayable revenue compensation.
The maintenance period will be uniformly ten years, and applications will be assessed in three windows based on the expected technical lifetime of the storage. The selection will depend on the principle of least cost, with the lowest revenue compensation requirement. Public consultation on the necessary legislative amendment could start in the near future.
Via MTI, Featured image via Pexels
