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After a few years of little progress, major developments in 2004 brought the Hungarian RES-E target within reach. Geographical conditions in Hungary are favourable for RES development, especially biomass.

Between 1997 and 2004, the average annual growth of biomass was 116 per cent. Whilst environmental conditions are the main barrier to further hydropower development, other RES such as solar, geothermal and wind energy are hampered by administrative constraints (for example the permit process).


The following measures exist for the promotion of RES-E:

  • A feed-in system is in place. It has been using technology-specific tariffs since 2005, when Decree 78/2005 was adopted. These tariffs are guaranteed for the lifetime of the installation.
  • A green certificate scheme was introduced with the Electricity Act (2001, as amended in 2005). This act gives the government the right to define the start date of implementation. At that time, FITs will cease to exist.

Nevertheless, from 2007, subsidies for cogeneration power and RES will be decreased, since national goals of production from RES were already achieved in 2005.

Table I.12: Key Support Schemes in Hungary

Technology Duration 2005 2005 2006 2006
fixed fixed fixed fixed Fixed
years Ft./kWh €/MWh Ft./kWh €/MWh
Geothermal, biomass, biogas, small hydro (<5 MW) and waste Peak According to the lifetime of the technology 28.74 117 27.06 108
Off-peak 16.51 67 23.83 95
Deep off-peak 9.38 38 9.72 39
Solar, wind Peak n.a. n.a. 23.83 95
Off-peak n.a. n.a. 23.83 95
Deep off-peak n.a. n.a. 23.83 95
Hydro (> 5 MW), co-generation Peak 18.76 76 17.42 69
Off-peak 9.38 38 8.71 35
Deep off-peak 9.38 38 8.71 35

Exchange rate  1 Ft. = 0.004075 Euro (1 February 2005) and 1 Ft. = 0.003975 Euro

(1 February 2006)



The Hungarian Energy Saving and Energy Efficiency Improvement Action Programme expresses the country’s determination to reach a share of renewable energy consumption of at least 6 per cent by 2010. The target set for Hungary in the EU Directive is a RES-E share of 3.6 per cent of gross electricity consumption. Progress is being made towards the 3.6 per cent RES-E target. Hungary’s RES-E share amounted to 0.7 per cent in 1997 and 2.24 per cent in 2004.

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