Hungarian Energy Minister: Government to offer new subsidies for energy storage

Domestic support for energy storage may soon increase to more than HUF 300bn, with several large storage facilities likely to be inaugurated this year, Energy Minister Csaba Lantos said in an interview with business daily Világgazdasag.

Lantos said through currently running applications, families and businesses are being supported by HUF 260bn of funding for investments into green energy production and storage, and this amount could soon exceed HUF 300bn. The minister noted that HUF 33bn was provided for system operators and distributors to install grid-integrated energy storage systems. In another tender, for a wider range of companies, contracts are being signed to support the completion of 50 facilities in 2026 with HUF 62bn of state contributions. Lantos said Hungary’s solar energy capacity has surpassed 7.5 GW. By 2030, they are calculating that there will be 12 GW of solar plants, but additional network investments will be needed to connect this capacity to the grid.

The minister said combined cycle gas turbine power plants will help reduce import exposures and greatly contribute to strengthening energy sovereignty and supply security. With plans for a 600 MW pumped-storage power plant, smaller 100 MW ones are also being considered. Lantos said HUF 10bn will be allocated to mitigate the financial risks of geothermal drilling and to modernize existing thermal wells. Two district heating tenders are planned, one to help the sector’s transition to green technology with HUF 50bn, he added.

Talking about the stability of Hungary’s oil and gas supply, the minister said the majority of fossil fuel shipments now arrive from the south, the complete loss of imports from the east does not pose an immediate risk to supply security. Hydrocarbon drilling concession applications for eight areas will be relaunched in January after a five-year hiatus to boost domestic production, he added.

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