Hungary submitted its proposal to modify its Recovery and Resilience Plan, to which it also wishes to add a REPowerEU chapter. The plan outlines strategic, regulatory and investment plans to strengthen the country’s energy sovereignty and achieve a balanced energy transition.
The European Commission introduced the REPowerEU plan in response to the international energy crisis caused by the Russia-Ukraine war. Member states complement their Recovery and Resilience Plans with REPowerEU chapters, which contain new or expanded measures and investments aimed at achieving energy savings, diversifying energy supply, and boosting the penetration of renewables.
Hungary’s REPowerEU proposal, submitted just ahead of the late August deadline targets primarily the modernisation of the electricity grid, greening of the industry, wider utilisation of geothermal energy, training of professionals in the green economy, and improving energy efficiency. The REPowerEU chapter also includes investments in energy digitalisation and the uptake of e-mobility.
According to the plans, Hungary will take measures to expand energy communities, promote energy storage, and enhance the wider use of biogas and biomethane. Besides regulatory tools, development support can also encourage the development of geothermal energy and hydrogen.
The largest portion of the investments would go towards upgrading the electricity grid, ensuring the secure integration of renewables through traditional and smart network improvements and enhancing operational reliability. The proposal may provide opportunities for industrial parks to enhance self-sufficiency by supporting their shift to clean energy consumption.
According to the ministry, improving the energy efficiency of businesses, public buildings, and residential properties can collectively reduce primary energy consumption by 343 gigawatt-hours annually in Hungary.
A new element of the submitted proposal, compared to the version released for public consultation in the summer is the support for energy digitalisation. To promote clean mobility, domestic businesses may also receive support for electric vehicle procurement. Additionally, the plan includes the expansion of Hungary’s electric charging infrastructure, with more than a hundred new stations.
The proposed revision of the plan is justified by Hungary’s request of 3.9 billion euros in loans which, together with its REPowerEU grant allocation of 0.7 billion euros, will finance the newly added REPowerEU chapter. These funds, added to the 5.8 billion euros in grants already committed under the original plan, make the overall, modified plan worth 10.4 billion euros.
The Commission has now two months to assess whether the modified plan, including its new REPowerEU chapter, fulfils all the assessment criteria in the RRF Regulation.
