Hungary will invest 251.4 million euros in the development of the country’s electricity grid
The government of Hungary will invest 103 billion Hungarian forints (251.4 million euros) in improving the country’s electricity network. Attila Steiner, State Secretary for Energy, stated that the government is funding 50% of the upgrades carried out by electricity companies.
At first, the announced support scheme was to be funded by the European Union’s Recovery and Resilience Facility. However, as negotiations have stalled, the government has decided to fund the program in advance.
According to the State Secretary, state-owned transmission system operator Mavir, as well as smaller transmission firms, will receive government assistance. Subsidiaries of the state-owned energy company MVM Group will receive a total of 35 billion Hungarian forints (85.7 million euros) in government assistance to increase the network’s capacity for renewable energy by 600-700 megawatts (MW).
The current geopolitical situation, according to the State Secretary, emphasizes the importance of domestic energy sources, and electricity generation can improve Hungary’s supply security. This, however, involves locally produced electricity and a network that can deliver electricity from production sites to consumers.
He stressed that the growing interest in solar PV (both residential and SMEs) implies network development due to the high volatility of renewable energy production. The newly announced support scheme aims to increase network flexibility so that as many renewables as possible can be integrated.