The European Commission approves Hungary renewable energy support scheme

The European Commission on Tuesday said it has approved a Hungarian scheme to support renewable energy.

The EC said the scheme aimed at reducing CO2 emissions as well as preserving competition conform with European Union rules on state aid.

“The Hungarian support scheme will increase the share of green energy in Hungary’s energy mix, whilst preserving competition in the electricity market,” said commissioner responsible for competition policy Margrethe Vestager.

The scheme with an annual budget of up to 45 billion forints (EUR 49m) will support the generation of electricity using renewable resources through a feed-in tariff for installations under 500 kW and a premium over market prices for installations with a capacity over 500 kW. For installations with a capacity above 1 MW as well as for wind installations, the premium will be determined and beneficiaries selected in a competitive bidding process.

The EC noted that Hungary will partially open up the renewables support scheme to foreign producers as of 2017 to avoid discrimination.

Source: MTI