EC approves €1.1bn Hungarian storage scheme

The European Commission has approved a €1.1 billion (HUF 436 billion) Hungarian scheme to support the development of at least 800 MW/1600 MWh of new energy storage facilities. 

The scheme was approved under the state aid Temporary Crisis and Transition Framework, which was adopted by the commission earlier this year with a view to supporting measures that are key to accelerating the green transition and reducing “fuel dependencies in the context of Russia's war against Ukraine”. 

The measure will be open to companies active in the energy sector in Hungary, with the exception of financial institutions. It will also be open to cross-border participation (that is, storage facilities in neighbouring member states), “within the limits of available transmission capacity and taking into account the share of renewables in the energy mix of neighbouring member states”. All storage technologies will be eligible.

The award of the grant contracts to the selected projects is planned to take place before the end of 2024.

The aid will be granted in two forms: (i) an investment grant, which will be paid during the construction phase of the supported projects; and (ii) support in the form of a two-way contract for difference (CfD) to be paid annually during the 10 first years of the operations phase of the supported projects.

Margrethe Vestager, European Commission executive vice-president in charge of competition policy, said the funding would mean the Hungarian electricity system “will be more flexible” adding that the “preparation for a higher integration of renewables into the electricity mix, is in line with EU climate and energy targets”.