Solar Wins Hungary’s 3rd Renewables Auction

• Hungary has awarded 183 MW of solar power capacity to 57 winning projects in its 3^rd renewable energy auction
• 42 projects with 32 MW combined capacity were selected for 301 kW to 990 kW range with average winning bid in this category as HUF 21.26 per kWh
• For large projects, 15 bids were selected for 152 MW combined capacity with average winning bid in this category being HUF 16.15 per kWh
• The 183 MW capacity is to bring online 299 GWh clean energy annually once these come online within 3 years of the final decision

It was solar all the way in the 3^rd renewable energy auction in Hungary under the country's METAR framework with all of 57 winning bids comprising solar projects. Together this would amount to 183 MW solar PV capacity coming online for an average winning bid of HUF 16.99 ($0.052) per kWh.

The Hungarian Energy and Public Utility Regulatory Authority (MEKH) said the tender was oversubscribed by more than 3 times. The offered capacity equalled 300 GWh annual output . It received 183 bids in all, out of which 57 made the final cut divided in small and large categories.

In the small support category, 42 projects with 32 MW combined were awarded for projects within the range of 301 kW to 990 kW. The average winning bid was HUF 21.26 ($0.065) per kWh for this category.

In the large support category for projects between 1 MW to 20 MW capacity, 15 projects together won 152 MW with an average winning bid of HUF 16.15 ($0.050) per kWh.

Compared with the previous round, there was a price reduction of about 5% in the current auction round which was launched in April 2021, according to MEKH. Winning projects need to submit relevant documents proving the availability of a performance guarantee equal to 5% of the investment cost.

Altogether, this 183 MW solar PV capacity is expected to generate 299 GWh of electricity annually while mobilizing close to HUF 62 billion ($0.19 billion) in new investment.

Winning facilities need to come start commercial operations within 3 years of receiving the decision, stated MEKH.

In the 1^st technology neutral renewables auction round of March 2020, solar won 71 out of 72 projects selected with a combined capacity of  (see PV Wins 131 MW In Hungary's Tech-Neutral RE Auction). The 2^nd auction results announced in February 2021 selected 36 solar projects with 210 MW combined capacity.