Hungary to reopen its wind energy market

Hungary is considering a significant expansion of its onshore wind generation capacity, marking a potential turning point for a market in which virtually no new wind farms have been developed for more than a decade. The Hungarian Energy and Public Utility Regulatory Authority (MEKH) has launched an industry consultation on a draft tender intended to allocate grid connection capacity for new wind power projects. The initiative forms part of a broader government objective to increase Hungary’s installed wind capacity tenfold, from approximately 330 MW today to 3,000–4,000 MW by 2030.

The proposed tender is expected to make approximately 700 MW of new grid connection capacity available in its first phase. According to publicly reported government plans, further tenders could follow in subsequent years, potentially allocating an additional 1,000 MW of capacity annually. The program is therefore relevant not only for existing renewable energy developers, but also for infrastructure investors, utilities, landowners and financial institutions considering entry into the Hungarian wind market.

A notable feature of the emerging framework is that the projects would not benefit from direct state investment support. Instead, the state intends to facilitate investment primarily through the development of the electricity grid, including infrastructure investments financed from EU sources. This approach is intended to create a more market-based project pipeline and to avoid some of the speculative behaviour associated with previous renewable support schemes, where the value of project permits and grid access could become detached from the actual development of projects.

The permitting environment is likely to remain one of the principal execution risks. The development of wind projects involves a range of regulatory considerations, including energy, environmental and nature protection requirements, as well as aviation and land-use restrictions. After a prolonged period with limited new wind development, both developers and authorities will need to navigate the practical application of the relevant permitting framework to a new generation of larger-scale projects. Site selection will consequently be critical at an early stage, particularly in view of nature protection considerations and potential restrictions relating to bird and bat migration routes.

The economic rationale for the program is also closely linked to the development and resilience of the electricity system as a whole. Wind generation can complement Hungary’s rapidly expanding solar generation profile because wind production is not dependent on daylight and may therefore improve the balance of renewable generation over the course of a day and across seasons. Recent periods of drought and exceptionally low river levels have also highlighted the vulnerability of electricity generation to climate-related conditions, including constraints on the operation of the Paks nuclear power plant when Danube water temperatures and flow conditions limit the availability of cooling water.

The consultation process is therefore particularly important for market participants. MEKH initially published a draft tender for industry comments and subsequently launched a second consultation phase on an updated version. The current consultation is scheduled to remain open until 13 August 2026.

If implemented as currently envisaged, the program could materially reshape the Hungarian renewable energy market. For investors and developers, however, the availability of grid capacity will be only the first step: successful projects will depend on securing suitable sites, obtaining the necessary permits, satisfying grid and construction requirements and maintaining a bankable legal and contractual structure throughout the development process.