MNB study envisages HUF 2.25 tln of investments into green energy
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The National Energy Strategy of Hungary sets out that by 2030 the current approximately 3 GW of renewable energy capacity will increase to over 7 GW and, by 2040 to over 13 GW, but this will require significant investment and debt financing, Hungarian news agency MTI reports, citing a study published by the National Bank of Hungary (MNB).
A boost in renewable energy production is expected to happen largely due to newly installed photovoltaic solar power plants. MNB estimates that the capacity expansion outlined in the national energy strategy will translate to HUF 2.25 trillion in investment needs and almost HUF 1.6 tln in debt financing requirement by 2040.
The study noted that this amount does not include the financing needed for the construction of energy storage capacities and the cost of network development, which also require significant investments adding up to HUF 500 bln.
Due to the transition risk related to climate change MNB considers it desirable that commercial banks increase the share of environmentally sustainable industries, such as the renewable energy industry, in their balance sheets. MNB noted that it has introduced preferential capital requirements for green corporate financing, which will improve the financing environment for renewable energy production.
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