Hungary amended its legislation related to the research, extraction and utilisation of geothermal energy. The government decree took effect on 1 March.
The Hungarian government aims to create a predictable and supportive regulatory framework for geothermal energy which is regarded as a potential contributor to the country’s energy sovereignty.
Last December, the Hungarian Parliament adopted the amendment to the Mining Act to unlock the country’s vast geothermal potential. The Ministry of Energy said according to the government’s estimates, geothermal energy can substitute up to 1-1.5 billion cubic metres of natural gas by 2030.
The Hungarian government also entrusted the licensing and supervision powers of geothermal energy production and utilisation to the Supervisory Authority of Regulatory Affairs.
In February the Hungarian Geothermal Cluster was set up, which announced a five-point strategy to encourage geothermal investments in the country, including supportive state regulation, and the establishment of a more simple legal framework and predictable investor environment.
The new governmental decree that was already published in the official journal of Hungary and took effect on 1 March aims to provide further support to the implementation of geothermal investments in the country.