On 15 July 2020, the Hungarian Energy and Public Utility Regulatory Authority (HEPURA) launched the second METAR Tender to support electrical energy produced from renewable sources.
Originally introduced on 1 January 2017, the METAR system was created to enhance new power-plant investments by granting the following support schemes to generators using renewable sources:
- mandatory offtake and feed-in tariff for power plants with a capacity of below 0.5 MW;
- green premium granted without tender for power plants with a capacity of less than 1 MW (except for wind power plants); and
- green premium granted through a tender for facilities with a capacity of at least 1 MW and for wind power plants.
The first tender under the METAR regime was deemed a success with 168 bids submitted and 72 winners. The winning bidders confirmed their intention to complete the investment by providing a performance guarantee equalling 5% of the estimated investment cost (except for one power plant with 0.33 MW capacity).
In the new tender launched on 15 July 2020, which is the second tender in the METAR regime, the new annual available subsidy is increased to HUF 800 million and the total volume of electricity to be subsidised is increased to 390 GWh.
Participants can apply for green premium subsidies in the following categories:
- power plants with less than 1 MW capacity (a total of 40 GWh per year to be subsidised).
- power plants of between 1 MW and 49.9 MW capacity (a total of 350 GWh per year to be subsidised).
Power plants belonging to the same beneficial owner can be awarded a total of 15 GWh/annum in the smaller power plant category and 175 GWh/annum in the larger power plant category, which is also an increase over the first tender.
Tender winners will have three years from the time the subsidies are granted to complete the power plant investment and start commercial operation.
Bids are to be submitted electronically between 15 September and 15 October 2020.
Potential bidders are advised to carefully examine tender documentation. Questions on tender procedures can be sent to the HEPURA via the email address: [email protected] or the telephone number +36 1 459 7740.
Tender documentation (in the Hungarian language) is available at: http://mekh.hu/2020-as-metar-palyazat-kozzetetele
For further information on renewable energy in Hungary or details of the new METAR Tender, contact your regular CMS source or local CMS experts Péter Simon, Zsófia Hermann and Péter Deák.
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