Hungary launches long-awaited green premium 'METÁR' tender

Hungary

On 2 September 2019, Hungary launched the first pilot tender for the METÁR system, which supports electric energy produced from renewable sources. 

Originally introduced two years ago (1 January 2017), the METÁR system was created to enhance new power-plant investments by granting the following support schemes:

  • mandatory offtake and feed-in tariff for power plants with a capacity below 0.5 MW;

  • green premium granted without tender for power plants with a capacity below 1 MW (except for wind power plants); and

  • green premium granted through a tender for facilities with a capacity at least 1 MW and for wind power plants.

In the upcoming tender opened on September 2, participants can apply for subsidies in the following categories:

  • power plants between 0.3 MW and 1 MW capacity (a total of HUF 333 million to be distributed).

  • power plants between 1 MW and 20 MW capacity (a total of HUF 667 million to be distributed).

Only electric energy produced from renewable sources in new investment power plants within Hungary will be granted subsidies. 

Investments developed in brownfield areas will be given priority during the evaluation process. 

Tender winners will have three years from the time the subsidies are granted to complete investments, and the subsidies will be distributed over 15 years.

As for tender applications, any economic operator is eligible to participate if it has a registered seat in the EU, EEA or Energy Community, or a registered seat, establishment or branch office in Hungary. Municipalities are also eligible to participate. 

Bids and applications are to be submitted between 8 a.m. 4 November 2019 and 12 p.m. 2 December 2019, and are to be filed electronically (through a client gateway, company gateway or official gateway) by completing an electronic form in the ÁNYK system, which is a Java-based, government-operated, electronic form filling and filing system. 

Results will be announced in early 2020.

Potential bidders are advised to carefully examine the tender documentation, and register electronically for the public consultation, which will be announced later. Any questions on the procedures should also be sent electronically to the Hungarian Energy and Public Utility Regulatory Authority (HEPURA) via the following email address: metar@mekh.hu.

As a result of an amendment to the laws regulating METÁR, no mandatory offtake right or green premium without a tender can be granted after 2020. 

Any support requests filed to the HEPURA and refused due to the exhaustion of the support budget will not be granted in the future since this budget is for green premiums granted only through tenders.

This upcoming tender competition is expected to shake up the energy market and facilitate the development of PV projects.

For further information on renewables in Hungary, please contact your usual CMS source or local CMS experts Péter Simon, Zsófia Hermann and Péter Deák.

Tender documentation is available at the following link (in Hungarian): http://mekh.hu/metar-tender-kozzetetel