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Hungary, MVM’s electricity distribution companies to boost their networks’ RES capacities

Electricity distributors operating under the Hungarian state-owned MVM – Demasz and Emasz presented projects for the increase of the capacity of their distribution networks in order to connect some 700 MW of new, renewable energy capacity.

Hungary’s State Secretary for Energy Attila Steiner said that the projects are getting around 85 million euros in support from some 250 million euros earmarked for upgrades by electricity distributors and transmission system operator MAVIR to increase network capacity for electricity produced from renewables. That funding is to come from Hungary’s Recovery and Resilience Facility (RRF) plan, but the Government has decided to pre- finance projects, while talks with Brussels are still ongoing.

The projects will boost MVM Demasz’s capacity for electricity generated from solar by at least 456 MW and MVM Emasz’s by at least 238 MW by the spring of 2026. The two distributors together have about a third of the market’s share in Hungary.

Hungarian Government recently decided to suspend new household applications to join the country’s feed-in tariff scheme after home solar panel volume outpaced network capacity. The suspension will be lifted when the necessary network upgrades are made.

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