Hungary plans to ditch coal by 2030 and become fully reliant on renewable energy
Hungary, along with neighbouring Poland, the Czech Republic, and Bulgaria, is one of the EU’s most coal-dependent member states – in 2016, it sourced 18% of its electricity from coal, 50% from nuclear, and 20% from gas. At present, lignite produces 14% of Hungary’s carbon dioxide emissions and half of the pollution of the entire country’s energy sector.
With the EU raising prices of lignite as a way of reducing greenhouse gases via the ETS, the Hungarian government has taken the decision to turn towards renewables as its principle power source.
The Hungarian government believes that a predicted price drop of up to 30% in photovoltaics gives the country with the chance to meet the energy directives proposed by the EU, which states that all 28 members within the bloc must source 20% of their energy from renewable sources by 2020.
Furthermore, Hungary’s government seeks to emulate Spain in order to calm fears amongst its mining communities about potential job losses as the country pivots towards renewables; following the announcement that Spain aims to move to 100% renewable energy by 2050, its government revealed a transition plan worth 250 million EUR, which is aimed at re-skilling coal professionals in clean energy jobs and funding renewable projects.
Hungary to launch renewables auction in July
The maximum size of eligible projects has been increased from 20 MW to 50 MW. The Hungarian government aims to contract around 390 GWh of generating capacity per year, with 40h GW to be reserved for the Small PVPP category, including installations between 300 kW and 1 MW in size. It will set aside 350 GWh for the Large PVPP group, which includes projects ranging in size from 1 MW to 50 MW.
Renewable energy policy database and support: Hungary
In Hungary, electricity from renewable energy sources is supported by a feed-in-tariff (FiT) for installations with an installed capacity of 50 kW-500 kW. For installations with a capacity of 0.5-1 MW, the market ('green') premium applies.
Renewable energy in Hungary. Hungary is a member of the European Union and thus takes part in the EU strategy to increase its share of renewable energy. The EU has adopted the 2009 Renewable Energy Directive, which included a 20% renewable energy target by 2020 for the EU.
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