High interest at Hungary feed-in tariff tender

Energy Trade

The Hungarian Energy and Public Utilities Regulatory Office (MEKH) received offers for 1,009 GWh of electricity generated from renewable resources at a tender for feed-in tariffs available for 300 GWh, MEKH said on Monday, according to a report by state news wire MTI.

Offers could be submitted in the METAR feed-in tariff framework from July 1 until July 30, 2021.

Most of the offers were for solar power, but there was also one for a 0.5MW power plant fueled by gas from landfills. The combined capacity of the power plants in the offers is 629 MW.

The weighted average offer price was HUF 18.41 per kWh.

At the previous METÁR tender, in 2020, the average weighted offer price was HUF 20.66 per kWh.

The feed-in tariffs are available in two categories: for plants with capacity under 1MW with distributed capacity up to 50GWh a year, and for plants with capacity up to 20MW with distributed capacity up to 250GWh per year.

MEKH chairman Péter Horváth said the offer prices are better than last year in spite of the smaller power plant size and the increased market uncertainties, reflecting the development of solar panel technology. Comparing these prices with the previous two feed-in tariff tenders, the third METAR tender is likely to result in a further price reduction even from last year's very low prices, MEKH said.

Tender winners are expected to be announced in October or November.

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