July 17 (Renewables Now) - The European Commission (EC) gave the green light to the new Hungarian support scheme for renewable electricity with a yearly budget of up to HUF 45 billion (USD 168m / EUR 146m).
"We want to make progress towards clean energy for the sake of our environment but also for European economic growth. The Hungarian support scheme will increase the share of green energy in Hungary's energy mix, whilst preserving competition in the electricity market," Margrethe Vestager, Commissioner responsible for competition policy said in statement last Tuesday.
Hungary notified plans to support electricity from renewable energy sources in April 2017. The scheme offers state support either through a feed-in tariff or through a price premium.
Feed-in tariff support will be limited to small installations (below 500 kW in capacity) and demonstration projects. All projects above 500 kW will receive a premium on top of the market price of electricity.
For installations with a capacity above 1 MW and wind power plants, the premium will be determined and beneficiaries selected in a competitive bidding process.
The scheme will be financed through the renewables support levy currently in place in Hungary. In order to avoid any discrimination against foreign renewable energy producers resulting from the financing mechanism, as of 2017 Hungary will partially open up the renewables support scheme to foreign producers, the EC statement said.
(HUF 100 = USD 0.37/ EUR 0.33)