Hungary’s 5th Renewable Energy Auction

MEKH Seeks To Contract 864 GWh Renewable Energy Annually Plus Storage Through New Tender

Hungary’s 5th Renewable Energy Auction

MEKH has made it mandatory for renewable energy projects in its latest tender round to be accompanied by a battery energy storage facility. (Illustrative Photo; Photo Credit: Jarama/Shutterstock.com)

  • MEKH has announced a call to procure 864 GWh annually under a new METAR KAT tender launched
  • Projects can be submitted under 2 categories of 5 MW to 20 MW, and between 20 MW to 50 MW capacities
  • For both the categories, bids have been capped at HUF 27.00 per kWh and HUF 25.00 per kWh, respectively

The Hungarian Energy and Utilities Regulatory Authority (HEPURA or MEKH) has launched the 5th renewable energy tender to procure a total of 864 GWh of new capacity annually, and to award feed-in-premium subsidies to the winners.

Of the 864 GWh, 144 GWh must come from projects with a capacity range of 5 MW to 20 MW for which the bids are capped at HUF 27.00 ($0.074) per kWh. The major part, 720 GWh annually will be expected from projects of over 20 MW but less than 50 MW capacity. Bidders for the 2nd category cannot quote more than HUF 25.00 ($0.069) per kWh as the highest tariff range.

Battery energy storage facility with a nominal capacity of at least 10% of that of the plant is a must. All the winning facilities must come online within 3 years of winning the round.

As per the tender documents on MEKH’s website, submissions will be accepted between March 25, 2022 till March 28, 2022.  

The tender is part of the Hungarian Renewable Energy Support System (METAR), launched since January 2017 to replace its feed-in-tariff (FIT) or KAT (scheme).

Under the METAR KAT scheme, Hungary awarded 131 MW solar PV in the 1st auction concluded in March 2020, followed by 210 MW awarded to solar in the 2nd round in February 2021. Recently, the 3rd round was completed with solar winning 183 MW of the total awarded (see Solar Wins Hungary’s 3rd Renewables Auction).

Altogether, MEKH said it has provided financial support for the production of over 1,700 GWh of electricity from renewables in the ‘four’ METAR auction rounds so far, which is expected to suffice the electricity needs of more than 825,000 households annually.

As per the Hungarian Energy Strategy, by 2030 the country aims to ensure 90% electricity production in the mix comes from carbon-free sources with nuclear energy and solar energy leading the charge. At the end of 2021, Hungary’s total installed solar capacity reached nearly 3 GW.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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