Hungary Launches New Wind Power Expansion

For the first time in ten years, the Hungarian government has unveiled an ambitious plan to expand wind energy. According to the business portal VG, Minister of Economy and Energy István Kapitány described the program as an important step toward greater energy independence. At the same time, the government launched the first tenders—funded through the EU’s Recovery and Resilience Facility (RRF)—to modernize Hungary’s aging power grid.

The government aims to increase Hungary’s installed wind power capacity from the current level of around 330 MW to 4 GW by 2030. This would more than tenfold the capacity. The new wind farms are intended to complement solar energy and improve the stability of the power grid.

End of a Decade-Long Stalemate

The project would end the nearly ten-year standstill in the expansion of wind energy. In 2016, the Fidesz government had introduced strict regulations that made new wind power projects practically impossible. At that time, a minimum distance of twelve kilometers between wind turbines and settlements was mandated, leaving hardly any suitable locations.

In 2024, the government relaxed the rules to enable the expansion of wind energy and to meet the requirements for accessing funds from the EU Recovery and Resilience Facility (RRF). The minimum distance was reduced to 700 meters, bringing it in line with European standards. However, no new permits have been issued so far.

Kapitány explained that the program to expand wind energy and modernize the power grid is intended to create a more balanced power system and eliminate existing bottlenecks.

First call for proposals to be issued this summer

Hungary is now one of the fastest-growing solar markets in Europe. However, the expansion of renewable energy has so far been based almost exclusively on photovoltaics, which places increasing strain on the power grid, particularly during periods of high solar power production.

According to the minister, the planned grid expansions are intended to eliminate these bottlenecks and enable the connection of additional wind and solar power plants.

The first tender for at least 700 MW of new wind power capacity is scheduled to be published by August 31. The draft tender conditions are to be submitted for public consultation as early as mid-July.

By 2030, the government plans to put a total of 4 GW of new wind power capacity out to tender. This is roughly equivalent to the output of four reactor units at the Paks Nuclear Power Plant, said Kapitány.

Billions in Investments in the Power Grid

The entire investment program is expected to mobilize around 2.5 billion euros. Of this amount, 1.5 billion euros are earmarked for the modernization of the transmission and distribution grids.

According to the government, extensive investments in the power grid are necessary to enable the further expansion of renewable energy. The rapid expansion of solar installations has revealed significant weaknesses in the existing grid infrastructure.

During the recent heat wave, electricity consumption reached record levels in the summer. At times, the power grid operated nearly at its capacity limit. At the same time, the output of the Paks nuclear power plant had to be reduced by 35 to 40%. The government called on households to reduce their electricity consumption during peak hours to ensure grid stability.

RRF Reforms and Smart Meters

The modernization of the power grid is being financed with funds from the EU Recovery and Resilience Facility, after the government committed to implementing the necessary reforms. This is intended to release frozen EU funds that had been blocked as a result of years of disputes between Brussels and the Orbán government.

At the same time, the Ministry of Energy has launched a public consultation on further legislative changes. Proposed measures include mandatory dynamic electricity rates for larger energy suppliers, a legal framework for independent electricity aggregators, simplified permitting procedures for renewable energy projects, expedited procedures in designated priority areas, and greater transparency regarding grid fees. Authorities that exceed approval deadlines will face financial penalties in the future.

In addition, the government unveiled subsidy programs totaling more than 500 billion forint (approximately 1.25 billion euros) for the energy sector. Of this amount, 27 billion forint is earmarked for the installation of smart meters in private households and 480 billion forint for the expansion of the power grids.

According to Kapitány, these investments are intended to address the consequences of years of underinvestment and accelerate the integration of renewable energy.

Smart meters are expected to enable dynamic electricity rates in the future, with prices based on wholesale prices and the time of consumption. This would provide consumers with incentives to shift their electricity consumption to off-peak hours and make greater use of periods of high solar and wind power generation.

Analysts estimate that this could relieve pressure on the power grid, lower the costs of grid balancing, and at the same time reduce the need to import electricity. In addition, smart meters could help cushion the sharp fluctuations in wholesale prices, which at times even dip below zero during periods of high solar power generation, while rising significantly in the evening hours.