Here is the third METÁR tender!

Renewable energy production support is soon available in Hungary 

The Hungarian Energy and Public Utility Regulatory Authority (HEPURA) published the third METÁR tender on 30 April 2021 to further promote electricity production from renewable energy sources in Hungary. Within the framework of the METÁR tender, electricity producers may be eligible for the so-called green premium type of support which is a premium support above the reference market price.

The premium type of support under the METÁR tender was introduced in 2017 and replaced the feed-in type support scheme. Both the first METÁR tender (published in 2019) and the second METÁR tender (published in 2020) was successful by multiple oversubscriptions of the available budget and resulted in the continuous decrease in the supported prices.

The total budget allocated for the current tender is HUF 450 million per year and the maximum amount of supported electricity is 300 GWh per year. The support will be distributed for successful applicants falling in one of the following two categories:

• power plants with a nominal capacity above 0,3 MW and below 1 MW (Small Category); and
• power plants with a nominal capacity of at least 1 MW and under 20 MW (Large Category).

Electricity producers falling in the Small Category may receive a premium support of up to HUF 200 million per year and a supported electricity quantity of up to 50 GWh per year. A premium support of up to HUF 250 million per year and a supported electricity quantity of up to 250 GWh per year will be distributed for electricity producers falling in the Large Category. Individual applicants belonging to the same beneficial owner may apply for a supported electricity quantity of up to 15 GWh per year in the Small Category and up to 80 GWh per year in the Large Category. The applications shall not exceed the maximum amount of support and the maximum supported quantity relating to the given category.

Producers may participate in the tender by submitting their initial supported price for the year 2021. The initial supported price for the year 2021 may not exceed HUF 27.32/kWh. The length of the support is 15 years.

Business associations having their registered seat in the EU, the EEA and the Energy Community, business associations having their registered seat, place of business or branch office in Hungary and municipalities may participate in the tendering process. Electricity producers may participate in the tender with power plants using renewable energy sources to produce electricity and are established by a new investment or undergone a significant development or refurbishment. Only power plants developed in Hungary may be eligible for the support. Electricity producers shall undertake to commence the commercial operation of their power plants within three years of receiving the support.

Applications may be submitted to the HEPURA between 1 July 2021 and 30 July 2021. The language of the tender is Hungarian. The applications may only be submitted electronically by using the forms made available by the HEPURA.

If you have any questions regarding the application, please contact the Head of BDO Legal's Energy Law Group at the following contact details:

Dr. Zsolt Csanádi Partner, Head of Energy Law Group

E-mail: zsolt.csanadi@bdolegal.hu

Mobile: (20) 339-1384