Hungary will promote local renewable energy through the EU Modernization Fund

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Hungary will receive 4 billion forints (11.4 million euros) from the European Union’s Modernisation Fund to promote renewable energy generation in local communities, informed Hungary’s Ministry of Innovation and Technology.

The ministry said that the innovative and modern projects to be financed were expected to contribute to Hungary’s goals of promoting renewables, decreasing greenhouse gas emissions, mitigating exposure to energy imports and helping households save on utilities.

Local energy communities enable prosumers to organise themselves and act collectively when consuming, selling, storing, or even sharing their energy. Hungary wants to encourage initiatives that ensure the local consumption of electricity on a renewable basis. Meanwhile, aggregators contribute to the balancing of the electricity system, which is necessary to ensure supply security given the proliferation of weather-dependent renewables. The tender is expected to be announced during the autumn, according to the ministry.

Hungary accounts for 7.12 per cent of the Modernisation Fund, which is recognised in the European Green Deal Investment Plan as one of the key funding instruments, supporting ten lower-income EU Member States in their transition to climate neutrality by helping to modernise their energy systems and improve energy efficiency. The beneficiary Member States are Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.

The first payment from the Fund – a total of 304.43 million euros – has been made available to Czechia, Hungary and Poland to finance six investment proposals that have been confirmed as priority investments

Czechia will receive 202 million euros for the implementation of photovoltaic installations. Poland will support the roll-out of smart meter infrastructure, the development of power grids for future electric car charging stations and energy efficiency in existing buildings from 91 million euros.

As a next step, the beneficiaries will have to transfer the money from the Modernisation Fund to the project proponents or scheme managing authorities. They also need to monitor the implementation of the Modernisation Fund investments and submit annual reports.