Key amendments to support Hungary’s Recovery and Resilience Plan

On 30 July 2026, the Hungarian Parliament adopted an act on the amendment of laws necessary for the fulfilment of the energy-related commitments set forth in Hungary’s Recovery and Resilience Plan (“RRP Act”). The legislation is intended to facilitate the achievement of the energy-related milestones undertaken by Hungary under its Recovery and Resilience Plan and, ultimately, to support access to funding under the EU Recovery and Resilience Facility (“RRF”). The amendments primarily focus on accelerating renewable energy investments, simplifying permitting procedures and increasing the flexibility of the electricity system and energy infrastructure.

A significant part of the amendments concerns geothermal energy. The RRP Act abolishes the Geothermal Energy Committee, which previously acted as a technical advisory body in geothermal exploration licensing procedures. The new rules also phase out the previous concession-zone regime applicable to certain geothermal exploration and extraction activities. In addition, the mandatory deadlines for the utilisation of geothermal protection areas have been removed: previously, the actual energetic utilization of the designated geothermal protection zone was subject to the requirement that the operation had to begin in the same year or within a period of 3 or 6 years. Now this regulation has lost its effect, and no strict deadline binds the rightholders.

The legislation also introduces changes aimed at facilitating wind power investments. Under the amended Hungarian Architecture Act, the previous land-exchange requirements applicable to certain green, agricultural and forest areas will not apply in the same manner to the construction of new wind power plants or wind farms falling within the relevant statutory exemption. Furthermore, the previous restriction under which wind turbine towers could exceed 199 metres only in designated exempted areas has been repealed, thereby providing greater flexibility regarding the height of wind power installations.

The environmental permitting framework has likewise been amended with the aim of streamlining investment procedures. In particular, an environmental protection permit may now be obtained as part of an integrated construction and environmental protection permitting procedure. The RRP Act also expands the mandatory disclosure requirements applicable to flexible-price electricity purchase agreements. The information to be provided must now cover, among other matters, the customer's right to a flexible price, the breakdown of the consideration by fee, whether the price is fixed or flexible, and any one-off fees and discounts.

The amendments overall aim to promote renewable energy investments and simplify the related regulatory and permitting processes, in line with Hungary’s energy-related commitments under its RRP.