Renewable energy policy database and support RES-LEGAL EUROPE

Transcription

1 Renewable energy policy database and support RES-LEGAL EUROPE National profile: Hungary Client: DG Energy Contact author: Flora Borek, Berlin,

2 eclareon GmbH Albrechtstraße Berlin Germany Phone: Fax: Öko-Institut P.O. Box Freiburg Germany Phone : Fax: ECN P.O. Box ZG Petten The Netherlands Phone : Fax:

3 TABLE OF CONTENTS HUNGARY SUMMARY TEXT... 4 RES-E SUPPORT SCHEMES... 5 Summary of support schemes... 5 Basic information on legal sources... 8 Further information Support schemes RES-E GRID ISSUES Overview Basic information on legal sources Further information Grid issues RES-H&C SUPPORT SCHEMES Summary of support schemes Basic information on legal sources Further information Support schemes RES-T SUPPORT SCHEMES Summary of support schemes Basic information on legal sources Further information Support schemes POLICIES Summary of policies Basic information on legal sources Further information Policy categories

4 Hungary summary text In Hungary, electricity from renewable energy sources is supported mainly by a feed-in-tariff. Household-sized power plants can benefit from net metering. In general, subsidy programmes also promote the use of renewable energy sources in the electricity and heating sector. In 2015, those subsidy programmes are realised within the framework of the Environment and Energy Efficiency Operational Programme (EEEOP) and the Territorial and Settlement Development Operational Programme (TOP) which offer nonrepayable grants, inter alia in combination with the feed-in tariff. However, the majority of the invitations to tender has not been published yet or is overdue. The main support scheme for the use of renewable energy in the transportation sector is a quota system supplemented by a reimbursement of excise duty. Renewable energy plants shall be given priority grid connection and grid access. The costs for the connection of renewable energy plants to and the expansion of the grid are borne either by the plant operator or by the grid operator, depending on certain criteria. There are a number of policies intending to promote the development, installation and use of RES installations. However, some policies are currently not available due to outstanding invitations to tender within the scope of the related subsidy programmes. 4

5 RES-E support schemes Summary of support schemes Overview In Hungary, electricity from renewable sources is supported mainly through a feed-in tariff. Replacement of the current system with a new mandatory renewable and alternative energy purchasing scheme (METÁR) is foreseen for late In general, additional support is provided by subsidy programmes for the use of renewable energy sources, mainly granted under the Environment and Energy Efficiency Operational Programme. However, many invitations to tender are still to be published. Feed-in tariff. The transmission system operator (TSO) MAVIR Ltd. is legally obliged to purchase electricity from renewable sources and pay a guaranteed price. Feed-in tariffs can be combined with the favourable loans within the subsidy programme EDIOP. Summary of support system Net Metering. Household-sized power plants with a capacity of maximum 50 kva may benefit from net metering. The electricity surplus injected to the grid is remunerated by the electricity supplier with the electricity retail price. Subsidy Programmes. Support may be provided through subsidy programmes, mainly EEEOP (Environment and Energy Efficiency Operative Programme) and EDIOP (Economic Development Investment Operational Programme). Technologies Basically, all technologies used for the generation of electricity from renewable sources are eligible for at least one support scheme. Statutory provisions Act No. LXXXVI of 2007 (2007. évi LXXXVI. törvény a villamos energiáról Act No. LXXXVI of 2007 on Electric Energy) Decree No. 389/2007 (389/2007. (XII. 23.) Korm. rendelet a megújuló energia forrásból vagy hulladékból nyert energiával termelt villamos energia, valamint a kapcsoltan termelt villamos energia kötelezö átvételéröl és átvételi áráról Government Decree No. 389/2007 (XII.23.) on the obligatory dispatch and 5

6 purchase of electricity generated from waste or from renewable energy sources Decree No. 309/2013 (309/2013. (VIII.16.) Korm. rendelet a megújuló energiaforrásból és a nagy hatásfokú kapcsolt energia termelésből nyert villamos energia származásának igazolásáról - Governmental Decree no. 309/2013. (VIII.16.) on the certification of origin for electricity from renewable energy sources and highly efficient combined heat and power) Government Decree No. 273/2007 (X. 19.) (273/2007. (X. 19.) Korm. rendelet a villamos energiáról szóló évi LXXXVI. Törvény egyes rendelkezéseinek végrehajtásáról Government Decree No. 273/2007 (X. 19.) on the Implementation of Act No. LXXXVI of 2007 on Electric Energy) Regulations for householdsized power plants <50 kv (HMKE) ( Háztartási méretű kiseröműkre vonatkozó szabályok (HMKE)) Decree No. 4/2013 (X.16.) (4/2013. (X.16.) MEKH rendelet a villamos energiarendszer használati díjakról és alkalmazásuk szabályairól Decree of the Hungarian Energy and Public Utility Regulatory Authority No. 4/2013 (X.16.) on the Application of Grid Use Charges) Distribution Regulation Regulation on the access to the distribution grid (amendment No. of 10 December 2013) - Elosztói szabályzat - Az elosztó hálózathoz való hozzáférés együttműködési szabályai 8. sz. módosítás (2013. december 10.) Decree No. 7/2014. (IX. 12.) (Decree of the Hungarian Energy and Public Utility Regulatory Authority No. 7/2014. (IX. 12.) on the Determination, the Amount and the Adjustment of the Fees for Connection to the Public Electricity Network 7/2014. (IX. 12.) MEKH rendelet a villamos energia hálózati csatlakozási díjak meghatározásának szempontjairól, a díjak elemeiröl, mértékéröl és alkalmazásuk szabályairól Decree No. 63/2013. (63/2013. (X. 29.) NFM rendelet az átvételi kötelezettség alá eső villamos energiának az átviteli rendszerirányító által történő szétosztásáról és a szétosztás során alkalmazható árak meghatározásának módjáról Decree No. 63/2013. (X. 29.) NFM on the distribution of electricity subject to feed-in obligation by the transmission system operator and on the methodology of determining prices to be applied in the course of distribution) Governmental Decision No. 1318/2015 (V. 21.) (1318/2015. (V. 21.) Kormányzati Határozat a Környezeti és Energiahatékonysági Operatív Program évre szóló éves fejlesztési keretének megállapításáról Decree No. 1318/2015 (V.21.) on the Budget for 2015 of the Environment and Energy Efficiency Operational Programme Governmental Decision No. 1811/2015. (XI. 10.) (1811/2015) (XI. 10.) Kormányzati Határozat a Területés Településfejlesztési Operatív Program éves fejlesztési keretének megállapításáról Decision No. 1811/2015 (XI. 10.) on the Budget for 2015 of the Territorial and Settlement Development Operational Programme Decree No. 391/2015 (XII. 11) on the amendment of certain governmental decrees concerning energy - A 6

7 Kormány 391/2015. (XII. 11) Korm. rendelete egyes energetikai tárgyú kormányrendeletek módosításáról 7

8 Basic information on legal sources évi LXXXVI. törvény a villamos 389/2007. (XII. 23.) KÁT rende- 309/2013. (VIII.16.) Korm. ren- 273/2007. (X. 19.) Korm. Name of legal source energiáról (VET). let delet a megújuló energiaforrásból és a nagy hatásfokú kapcsolt rendelet a villamos energiáról szóló évi LXXXVI. Törvény (original language) energiatermelésből nyert villamos energia származásának egyes rendelkezéseinek végrehajtásáról igazolásáról 389/2007. (XII. 23.) Korm. rendelet a megújuló energiaforrásból vagy hulladékból Full name nyert energiával termelt villamos energia, valamint a kapcsoltan termelt villamosenergia kötelezö átvételéröl és átvételi áráról. Act No. LXXXVI of 2007 on Electric Government Decree No. Governmental Decree no. Government Decree No. Energy 389/2007 (XII.23.) on the oblig- 309/2013. (VIII.16.) on the certi- 273/2007 (X. 19.) on the Imple- atory dispatch and purchase of fication of origin for electricity mentation of Act No. LXXXVI of Name (English) electricity generated from waste or from renewable ener- from renewable energy sources and highly efficient combined 2007 on Electric Energy gy sources. heat and power. 8

9 Abbreviated form Act No. LXXXVI of 2007 Decree No. 389/2007 Decree No. 309/2013 Government Decree No. 273/2007 (X. 19.) Entry into force Last amended on Future amendments Regulating the electricity market The decree establishes a Prescribing the procedure for The government decree regu- framework for the dispatch of issuing guarantees of origin for lates the implementation of the Purpose and payment for electricity electricity from renewable Act on Electric Energy. generated from renewable sources and highly efficient energy sources and waste. combined heat and power. One of the Act's priorities is to This decree promotes renewa- This decree introduces a guaran- The government decree regu- Relevance for renewable en- promote the generation of electric- ble energy only. tee of origin for renewable en- lates the implementation of the ergy ity from renewable energy sources ergy. incentive scheme for renewable and waste. energy generation Link to full text of legal source ocid= gi?docid= ?docid= ?docid= (original language) 9

10 Link to full text of legal source (English) Háztartási méretű kiserőműkre 7/2014. (IX. 12.) MEKH rendelet 63/2013 (X. 29.) KÁT allokációs Name of legal source vonatkozó szabályok (HMKE) a villamos energia hálózati csatlakozási díjak me- rendelet (original language) ghatározásának szempontjairól, a díjak elemeiröl, mértékéröl és alkalmazásuk szabályairól 63/2013. (X. 29.) NFM rendelet az átvételi kötelezettség alá eső villamos energiának az átviteli Full name rendszerirányító által történő szétosztásáról és a szétosztás során alkalmazható árak meghatározásának módjáról Regulations for household-sized Decree of the Hungarian Energy Decree No. 63/2013. (X. 29.) power plants (HMKE). and Public Utility Regulatory NFM on the distribution of Authority No. 7/2014. (IX. 12.) electricity subject to feed-in Name (English) on the Determination, the Amount and the Adjustment of obligation by the transmission system operator and on the the Fees for Connection to the methodology of determining Public Electricity Network prices to be applied in the course of distribution (Feed-in 10

11 tariff allocation decree) Abbreviated form HMKE Regulations Decree No. 7/2014. (IX. 12.) Decree No. 63/2013 (X. 29.) Entry into force Last amended on Future amendments / Informs about the regulations ap- Establishing the financial and Establishing the framework and Purpose plying to household-sized power installations technical terms and conditions for connection to the public the prices for distributing the electricity subject to the feed-in electricity network obligation. One of the documents priorities is The use of renewable energy The framework established by to inform about net metering for sources may be rewarded with this decree also applies to re- household-sized power installa- a reduction in the connection newable energy power plants tions including renewable energy charges. The decree sets differ- benefiting from feed-in tariff Relevance for renewable energy power plants like PV-installations. Regulations for HMKE can be found in several statutory provisions: ent amounts of connection charges according to the proportion of renewable energy scheme. Act No LXXXVI of 2007 Decree No 273/2007 (X. 19.) Decree No. 4/2013 (X.16.) Decree No. 7/2014 (IX. 12.), used. Plants that generate electricity from a primary source of energy and for which there is evidence that they produce on average over a period of five 11

12 Distribution Regulation years at least a. 70% of their electricity from renewable energy sources, the connection charges are reduced by 30%. b. 90% of their electricity from renewable energy sources, the connection charges are reduced by 50%. ( 7 (2) Decree No. 7/2014 IX. 12.)) Link to full text of legal source (original language) Applicable for all HMKE: 76/00000/Haztartasi_meretu_kiser omure_vonatkozo_szabalyok_2015.pdf Introduction of HMKE and the procedure of installation: i?docid= i?docid= amended version (to be applied ): i?docid= new decree to be applied (from ): 12

13 retu_kiseromuvek#engedelyezes 258/0/1_2016_NFM_rendelet_ egys%c3%a9ges_hat_ pdf/88f47400-d534-4c68-9bd1-c966cb1e0193 Link to full text of legal source (English) Name of legal source (original language) Governmental Decision No. 1318/2015 (V. 21.) (1318/2015. (V. 21.) Kormányzati Határozat a Környezeti és Energiahatékonysági Operatív Program évre szóló éves fejlesztési keretének megállapításáról A Kormány 391/2015. (XII. 11.) Korm. rendelete egyes energetikai tárgyú kormányrendeletek módosításáról 4/2013. (X.16.) MEKH rendelet a villamos energiarendszer használati díjakról és alkalmazásuk szabályairól Full name Name (English) Decision No. 1318/2015 (V.21.) on the Budget for 2015 of the Environment and Energy Efficiency Operational Programme Decree No. 391/2015 (XII. 11) on the amendment of certain governmental decrees concerning energy Decree of the Hungarian Energy and Public Utility Regulatory Authority No. 4/2013 (X.16.) on the Application of Grid Use 13

14 Charges Abbreviated form Governmental Decision No. 1318/2015 (V.21.) Decree No. 391/2015 (XII. 11 Decree No. 4/2013 (X. 16.) Entry into force Last amended on Future amendments Disclosure of the annual budget The decree amends certain Gov- The decree regulates the evalua- and related funding priorities of ernmental Decrees, inter alia tion of the electricity system Purpose the Environment and Energy Efficiency Operational Pro- Decree No. 389/2007 on the Feed-in Tariff. usage charge, defining types of system regulation charges, pay- gramme (EEEOP). ment modalities and their respective application Following the decision, invitations The essential elements for RES The decree is relevant e.g. for for tenders are supposed to be are the amended reporting re- household-sized installations Relevance for renewable energy initiated. The EEEOP covers 5 funding priorities, inter alia the enhancement of energy efficien- quirements for producers from April 2016 on, since the plant operator has to declare an elec- (HMKE) in case of two-way metering to define accounting modalities. cy and the application of renew- tricity production schedule for able energy sources. The decree each day of the month from then determines the funding priorities (before, this was obligatory on a 14

15 and the funding amount for each of the priorities. monthly basis). Furthermore, the decree amends regulations concerning the operation of small scale installations (HMKE). docid= docid= Link to full text of legal source (original language) docid= explanation of the amendment: s/10258/107825/t%c3%a1j%c3 %A9koztat%C3%B3_lev%C3%A9l _K%C3%81T_jogszab%C3%A1ly_ m%c3%b3dos%c3%adt%c3%a1s _ pdf/876d089c-d2ab- 43e1-98ed-3cc a0 Link to full text of legal source (English) Name of legal source (original language) Elosztói szabályzat - Az elosztó hálózathoz való hozzáférés együttműködési szabályai 8. sz. módosítása (2013. december 10.) 1811/2015 (XI. 10.) Kormányzati Határozat a Terület- és Településfejlesztési Operatív Program éves fejlesztési keretének megállapításáról Decision 15

16 Full name Name (English) Abbreviated form Regulation on the access to the distribution grid (amendment No. 8 of 10 December 2013) Distribution Regulation Governmental Decision No. 1811/2015 (XI. 10.) on the Budget for 2015 of the Territorial and Settlement Development Operational Programme Governmental Decision No. 1811/2015 (XI.10.) Entry into force Last amended on Future amendments Purpose The decree regulates the access to the distribution grid for small scale and household-sized power installations (HMKE). Disclosure of the annual budget and related funding priorities of the Territorial and Settlement Development Operational Programme (TOP). Relevance for renewable Definition of the technical criteria for household-sized power instal- Following the decision, invitations for tenders are supposed to be 16

17 energy Link to full text of legal source (original language) lations (HMKE) in order to connect to the distribution grid. a/76/00000/haztartasi_meretu_ kiseromure_vonatkozo_szabalyok _2015.pdf initiated. The TOP covers 7 funding priorities, which may include sub-programmes for the enhancement of energy efficiency and the application of renewable energy sources. The decree determines the funding priorities and the funding amount for each of the priorities. i?docid= Link to full text of legal source (English) 17

18 Further information Institution (name) Website Name of contact person (optional) Telephone number (head office) (optional) Nemzeti Fejlesztési Minisztérium (NFM) - Ministry of National Development ugyfelszolgalat@nfm.gov. hu Széchenyi gyfelszolgalat Magyar Energetikai és Közműszabályozási Hivatal (MEKH) - Hungarian Energy and Public Utility Regulatory Authority (HEA) and the special page on energy efficiency and renewable energy sources: mekh@mekh.hu and en- ergiahate- konysag@mekh.hu MAVIR Magyar Villamosen info@mavir.hu ergia-ipari Átviteli Rendszerirányító Zártkörüen Feed-in Tariff Call Center : kat@mavir.hu Müködö Részvénytársaság Hungarian transmission grid operator 18

19 19

20 Support schemes Feed-in tariff (Act No. LXXXVI of 2007) Abbreviated form of legal source(s) Act No. LXXXVI of 2007 Decree No. 389/2007 Decree No. 309/2013 Decree No. 63/2013 (X. 29.) Contact Authority Magyar Energetikai és Közmű-szabályozási Hivatal (MEKH) (Hungarian Energy and Public Utility Regulatory Authority) Summary In Hungary, electricity generated from renewable energy sources and waste is promoted through feed-in tariffs. The eligibility period and the maximum amount of eligible electricity are determined for each eligible electricity producer by the Hungarian Energy and Public Utility Regulatory Authority (HEA). For biomass (<20 MW), biogas (<5 MW), landfill gas and PV installations <2 MW, there are benchmark feed-in periods which can be shortened if other investment schemes are used for the individual project. The feed-in tariffs are fixed and adjusted every year with inflation or inflation minus one percentage point (for installations erected before 2008) or with the consumer price index minus one percentage point (for installations erected after 2008). Tariffs are differentiated by plant size, time of licensing, time zones (three per day) and partly by technology. Eligible technologies General information All renewable energy generation technologies are eligible ( 1 (1) a), (3) b c) Decree No. 389/2007). Only electricity with a valid qualification related to the guarantee of origin according to Government Decree No. 309/2013 for electricity from renewable energy sources and CHP may benefit from feed-in tariffs ( 9/A. j Decree No. 389/2007). Installations with an installed capacity of 50 kw are not eligible for feed-in tariffs. Net metering applies in their case (see HMKE- 20

21 regulations). Wind energy Eligible; the feed-in tariff is awarded through calls for applications ( 7 (2) (4) Act No. LXXXVI of 2007; 1 (5) Decree No. 389/2007). Solar energy Eligible. Geothermal energy Eligible. Biogas Eligible. Hydro-power Eligible. Biomass Eligible. Amount General information There are three different tariff rates depending on the time of day (peak, valley and deep-valley period). These time periods are defined by law, depend on the area the electricity is generated in and vary for weekdays and weekends/holidays as well as for summer and wintertime. There are three tariff areas according to the areas of operation of the six distribution grid operators (Annex 3 Decree No. 389/2007). The tariff level also depends on a plant's installed capacity and the generation technology employed. In addition, the tariffs differ for plants approved by the Hungarian Energy and Public Utility Regulatory Authority prior to ( 4 (1) Decree No. 389/2007) and plants approved after this date ( 4 (2), (3), (6) Decree No. 389/2007). This tariff difference according to the date of approval does not apply to waste to energy plants and hydro-power plants with an installed 21

22 capacity of more than 5 MW and other plants whose capacity exceeds 50 MW ( 4 (4) Decree No. 389/2007). Plants containing used parts receive specific tariffs which are the same as for plants with a capacity of more than 50 MW ( 4 (6) and Annex 1 Decree No. 389/2007). The basic tariffs are set by law (Annex 1 Decree No. 389/2007). At the end of each year, the Hungarian Energy and Public Utility Regulatory Authority adjusts the tariffs according to the calculation procedure outlined in Annex 5 Decree No. 389/2007, based on the basic tariffs ( 3 (3) Decree No. 389/2007). The tariffs for RES-E plants for which an application was submitted after 1 January 2008 will annually increase or decrease by the consumer price index of the previous year minus 1%. The tariffs for plants for which an application was submitted prior to 1 January 2008 will annually increase by the inflation rate of the previous year except for hydro power over 5 MW, waste to energy plants and plants containing used parts where tariffs are adjusted with previous year inflation minus 1 percentage point (Annex No. 5 Decree No. 389/2007). The tariffs for 2015 are listed below. Wind energy Solar energy Wind power plants over 50 kva can be connected to the grid only if there is a call for tender. The tariff is set by the result of the tender (see 1 (5) Decree No. 389/2007) Plants approved after 01/01/2008: Plants of 20 MW or less: HUF per kwh (approx. 0.10); No 22

23 difference between peak, valley and deep-valley period. Plants between MW (50 MW included): peak period: HUF per kwh (approx. 0.09) valley period: HUF per kwh (approx. 0.08) deep-valley period: HUF per kwh (approx. 0.03) Plants of more than 50 MW (date of approval irrelevant): peak period: HUF per kwh (approx. 0.07) valley period: HUF per kwh (approx. 0.05) deep-valley period: HUF per kwh (approx. 0.05) Plants approved after 01/01/2008: Geothermal energy Plants below 20 MW: o Peak period: HUF per kwh (approx. 0.12) o Valley period: HUF per kwh (approx. 0.10) o Deep-valley period: HUF per kwh (approx. 0.04) Plants between 20 and 50 MW: o peak period: HUF per kwh (approx. 0.09) o valley period: HUF per kwh (approx. 0.08) o deep-valley period: HUF per kwh (approx. 0.03) Plants of more than 50 MW (date of approval irrelevant): peak period: HUF per kwh (approx. 0.07) valley period: HUF per kwh (approx. 0.05) 23

24 deep-valley period: HUF per kwh (approx. 0.05) Plants approved after 01/01/2008: Plants below 20 MW: o peak period: HUF per kwh (approx. 0.12) o valley period: HUF per kwh (approx. 0.10) o deep-valley period: HUF per kwh (approx. 0.04) Plants between 20 and 50 MW: Biogas o peak period: HUF per kwh (approx. 0.09) o valley period: HUF per kwh (approx. 0.08) o deep-valley period: HUF per kwh (approx. 0.03) Plants of more than 50 MW (date of approval irrelevant): peak period: HUF per kwh (approx. 0.07) valley period: HUF per kwh (approx. 0.05) deep-valley period: HUF per kwh (approx. 0.05) Plants approved after 01/01/2008: Hydro-power Plants below 5 MW: o peak period: HUF per kwh (approx. 0.12) o valley period: HUF per kwh (approx. 0.10) o deep-valley period: HUF per kwh (approx. 24

25 0.04) Plants of more than 5 MW (date of approval irrelevant): o peak period: HUF per kwh (approx. 0.07) o valley period: HUF per kwh (approx. 0.05) o deep-valley period: HUF per kwh (approx. 0.05) Plants approved after 01/01/2008: Plants below 20 MW: o peak period: HUF per kwh (approx. 0.12) o valley period: HUF per kwh (approx. 0.10) o deep-valley period: HUF per kwh (approx. 0.04) Plants between 20 and 50 MW: Biomass o peak period: HUF per kwh (approx. 0.09) o valley period: HUF per kwh (approx. 0.08) o deep-valley period: HUF per kwh (approx. 0.03) Plants of more than 50 MW (date of approval irrelevant): peak period: HUF per kwh (approx. 0.07) valley period: HUF per kwh (approx. 0.05) deep-valley period: HUF per kwh (approx. 0.05) 25

26 General information Wind energy Solar energy Degression Geothermal energy Biogas Hydro-power Biomass Cap There is no fixed upper limit on annual RES-E production or installed capacity. Eligibility period The eligibility period is set out by the Hungarian Energy and Public Utility Regulatory Authority according to provisions in the implementing decrees and shall not exceed the pay-off period of the plant ( 11 3) and 4) Act No. LXXXVI of 2007). Entitled party: The persons entitled are the plant operators. Addressees Obligated party: Obliged balance group operators are obliged to purchase electricity from renewable sources according to the electricity sold to final consumers not eligible for universal service ( 1 subpar. 7 and 3 Decree No. 63/2013 (X. 29.)). For that reason, obliged balance group operators have to enter into a contract with the transmission grid operator ( 13 Act No. LXXXVI of 2007). The universal service ( egyetemes szolgáltatás ) guarantees regulated electricity prices for households and small consumers. Procedure Process flow Plant operators are entitled by law to payment for their electricity ( 13 (1) Act No. LXXXVI of 2007). 6 Decree No. 389/2007 prescribes 26

27 the following application process: To enforce a claim for a feed-in tariff, a plant operator shall submit an application to the Hungarian Energy and Public Utility Regulatory Authority ( 6 (1) Decree No. 389/2007). Application deadlines, and the documents to be submitted together with an application are defined by law ( 6 (2)-(4) Decree No. 389/2007). Checklist and clarification is available on HEA s website. The Hungarian Energy and Public Utility Regulatory Authority sets the eligibility period for the feed-in tariff and the maximum amount of electricity for which the tariff may be received ( 6 (7) Decree No. 389/2007). Where a plant operator receives other subsidies or grants for his plant, the Hungarian Energy and Public Utility Regulatory Authority will take into account the total amount of grants received when calculating the eligibility period for the feedin tariff ( 6 (10) Decree No. 389/2007). Competent authority The Hungarian Energy and Public Utility Regulatory Authority may act as a supervising body and inflict penalties in cases of violations of the law ( 9 Decree No. 389/2007). Flexibility Mechanism Distribution of costs State Consumers In the end, the consumers not eligible for universal service ( egyetemes szolgáltatás ) bear the costs of the feed-in tariff scheme (obliged balance group operators pass their costs on to businesses). 27

28 The universal service system guarantees regulated electricity prices for households and small consumers ( 13 Act No. LXXXVI of 2007). Plant operator Grid operator The transmission system operator (MAVIR Ltd.) pays the feed-in tariff to the plant operators, but also receives payments from the obliged balance group operators ( 13 (1) Act No LXXXVI of 2007). Part of the renewable electricity is sold on the organised market (HUPX). European Union Distribution mechanism Plant operator transmission system operator/ obliged balance group operators: The transmission system operator (TSO) buys electricity from renewable sources from plant operators and pays them the feed-in-tariff. The TSO then sells this electricity partly on the organised market (HUPX) and partly to the obliged balance group operators ( 10 Decree No. 63/2013 (X. 29.). Obliged balance group operators have to purchase electricity from renewable sources from the TSO and have to cover all the remaining costs ( 12 subpar. 1 Decree No. 63/2013 (X. 29.). Obliged balance group operators final consumer: Obliged balance group operators have to pass through the extra costs to their consumers via bilateral agreements so in the end consumers not eligible for universal service bear the costs through the electricity price. All costs of the new FiT financial means have to be declared on the bill of end con- 28

29 sumers who are not eligible for universal service ( 13 (3) Law No. CXXXVI. 29

30 Net-Metering Abbreviated form of legal source(s) Country-specific support system Act No. LXXXVI of 2007 Government Decree No. 273/2007 (X. 19.) HMKE Regulations Decree No. 7/2014. (IX. 12.) Decree No. 4/2013 (X. 16.) Distribution Regulation Decree No. 391/2015 Household-sized power installations (HMKE) with a capacity of maximum 50 kva are eligible for net metering in case that the power plant connects to the low-voltage grid ( 5 (6) Government Decree No. 273/2007 (X. 19.) in conjunction with 3 No. 24 Act No. LXXXVI of 2007) and the performance of the power plant does not exceed 3x63A ( 9 (1) Decree No. 7/2014. (IX. 12.)). The electricity surplus injected to the grid is remunerated by the electricity supplier with the retail electricity price. Connection to the public grid is only possible with an operational approval. If the approval is given, the local electricity traders or the universal supplier (egyetemes szolgáltató) is obliged to feed the electricity into the grid ( 4 Government Decree No. 273/2007 (X. 19.). Promoted technologies General information Household sized power plants with a maximum capacity of 50 kva are eligible for net metering in case that the power plants connect to the low-voltage grid ( 5 (6) Government Decree No. 273/2007 (X. 19.) in conjunction with 3 No. 24 Act No. LXXXVI of 2007) and the performance of the power plant does not exceed 3x63A ( 9 (1) Decree No. 7/2014. (IX. 12.)). In general, all technologies are eligible, but they are not legally specified. Wind energy Eligible with a maximum capacity of 50 kva. 30

31 Solar energy Geothermal energy Biogas Hydro-power Biomass Eligible with a maximum capacity of 50 kva. Eligible with a maximum capacity of 50 kva. Eligible with a maximum capacity of 50 kva. Eligible with a maximum capacity of 50 kva. Eligible with a maximum capacity of 50 kva. The electricity produced by the household-sized plant is offset with the generator s consumed electricity. Any surplus will be fed into the grid and will be remunerated with the retail electricity price. The payment of fix basic grid distribution charges and distribution capacity charges are due. Three situations can be distinguished: Amount The electricity consumption exceeds the electricity generation: the grid user pays for the balance of electricity consumption and electricity generation (Chapter IV. No. 1 HMKE Regulations). The electricity consumption equals the electricity generation: the grid user does not have to pay for any electricity consumed, but the fix basic grid distribution charges and the distribution capacity charges are due (Chapter IV. No. 2 HMKE Regulations). The electricity consumption is below the electricity generation: the grid user has to pay the fix basic grid distribution charges and the distribution capacity charges; the electricity trader pays the retail price for the excess electricity fed into the grid (Chapter IV. No. 3 HMKE Regulations) Addressees Entitled party: Household-sized power plants are entitled to benefit from net metering in case that they connect to the lowvoltage grid and its capacity does not exceed 50 kva ( 5 (6) Government Decree No. 273/2007 (X. 19.) in conjunction with 3 No. 24 Act No. LXXXVI of 2007) and the performance of the power plant shall not exceed 3x63A ( 9 (1) Decree No. 7/2014. (IX. 12.)). Obligated party: Electricity traders and universal suppliers (egyetemes szolgáltató) are obliged to take over the electricity pro- 31

32 duced by household-sized power plants on request of the plant operator at the grid connection point ( 4 Government Decree No. 273/2007 (X. 19.). Procedure Procedure The plant operator of household-sized power plants has to indicate to the grid operator through a formal application (in writing or electronically) if he wishes to connect a household-sized power plant to the grid ( 5 (3) Government Decree No. 273/2007 (X. 19.)). The entitlement expires if PV installations do not start operation within one year, other installations within three years after application ( 2 (3) Government Decree No. 391/2015) The plant operator of household-sized power plants and the grid operator agree on the billing period, which can be monthly, half-yearly or yearly ( 5 (5) Government Decree No. 273/2007 (X. 19.)). The plant operator is informed about the balance of electricity fed into the grid and the electricity consumption. The plant operator will be remunerated for the electricity surplus by the electricity trader or universal supplier with the retail electricity price (Chapter IV. No. 3 HMKE Regulations). Competent authority The Hungarian Energy and Public Utility Regulatory Authority is the competent authority. Flexibility Mechanism Distribution of costs State 32

33 Consumers Plant operator Grid operator European Union Distribution mechanism Electricity traders and universal suppliers (egyetemes szolgáltató) are obliged to remunerate the plant operator with the retail electricity price for the electricity surplus fed into the grid (Chapter IV. No. 3 HMKE Regulations). Subsidy programmes EEEOP, TOP and EDIOP Abbreviated form of legal source(s) Government Decision 1318/2015 (V.21.) (EEEOP) Decision No. 1811/2015 (XI.10.) Summary Under the Environment and Energy Efficiency Operative Programme (EEEOP), calls for tenders have been published in 2015 whereas the annual funds amount up to HUF 749 billion (approx. 2.4 billion). Eligible for subsidies are inter alia civil organisations, church institutions, companies and public institutions. However, most of the invitations to tender have not been opened yet. This Programme integrates 5 financing priorities (1 highest priority and 5- lowest priority): Adaptation to climate change 33

34 Development of municipal water and sanitation infrastructure Waste management Environmental measures and development Enhancement of energy efficiency and the application of renewable energy sources Following the Decision 1318/2015, invitations for tenders are supposed to be initiated. Further, the decree determines the direction of financing and the amount of funding for each of the directions. Renewable Energy Subsidy Programmes are listed in Annex 1 to Decision 1318/2015 (V.21.), e.g.: EEEOP Support for the Green Electricity Generation, HUF 10 billion (approx billion) EEEOP Energetic Refurbishment of Buildings combined with the use of RES, HUF 20 billion (approx million) Furthermore, subsidies for the enhancement of energy efficiency and the application of renewable energy sources will also be available under the Territorial and Settlement Development Operational Programme (TOP), determined by Decision 1811/2015 (XI.10.)). Renewable Energy Subsidy Programmes are listed in Annex 1: TOP Support for the local deployment of renewable energy sources, with the overall budget of HUF billion (approx million). TOP Support for the local deployment of renewable energy sources, with the overall budget of HUF billion (approx million). Besides the EEEOP, also the Rural Development Programme (RDP) can provide subsidies through tenders to foster electricity generation. According to the following sub-programme, agricultural producers are eligible to apply for: RDP Improvement of Agricultural Products and the Promotion of Food Stock Efficiency in Production. The tender is open from 15 February 2016 until 15 February 2018 and grants subsidies between HUF 500 million and HUF 1.5 billion for each project (approx million million) 34

35 General information Eligible technologies are specified in the invitations for tender Wind energy Solar energy Eligible technologies Geothermal energy Biogas Hydro-power Biomass Amount Addressees Project-specific; mainly civil organisations, church institutions, companies, public institutions and agricultural businesses (Annex 1 to Decision 1318/2015. (V. 21.)) Procedure Process flow Competent authority Flexibility mechanism Distribution of costs State Consumers 35

36 Plant operator Grid operator European Union Distribution mechanism 36

37 RES-E grid issues Overview Overview of grid issues The Act on Electric Energy (Act No. LXXXVI of 2007) gives priority grid connection and access to electricity generated from renewable energy. Furthermore, it imposes restrictions on electricity imports to the benefit of renewable energy. The costs for the connection of renewable energy plants to and the expansion of the grid are borne either by the plant operator or by the grid operator, depending on certain criteria. Connection to the grid Plant operators are contractually entitled to connection to the grid. Renewable energy plants shall be given priority connection. The costs arising from the connection of a plant to the grid are borne by the grid operator. Use of the grid Plant operators are contractually entitled to use the grid. Electricity from renewable sources shall be given priority transmission. Grid development The grid shall be expanded in such a way as to meet the political objective of promoting the generation of electricity from renewable sources. Electricity from renewable sources is not given priority as regards the expansion of the grid. The grid operator shall bear the costs of grid expansion works for the benefit of renewable energy plants, provided that certain conditions are met. Statutory provisions Act No. LXXXVI of 2007 (2007. évi LXXXVI. törvény a villamos energiáról Act No. LXXXVI of 2007 on Electric Energy) Government Decree No. 273/2007 (X. 19.) (273/2007. (X. 19.) Korm. rendelet a villamos energiáról szóló évi LXXXVI. Törvény egyes rendelkezéseinek végrehajtásáról Government Decree No. 273/2007 (X. 19.) on the Implementation of Act No. LXXXVI of 2007 on Electric Energy) Decree No. 7/2014. (IX. 12.) (Decree of the Hungarian Energy and Public Utility Regulatory Authority No. 7/2014. (IX. 12.) on the Determination, the Amount and the Adjustment of the Fees for Connection to the Public Electricity Network 37

38 7/2014. (IX. 12.) MEKH rendelet a villamos energia hálózati csatlakozási díjak meghatározásának szempontjairól, a díjak elemeiröl, mértékéröl és alkalmazásuk szabályairól Decree No. 4/2013 (X.16.) (4/2013. (X.16.) MEKH rendelet a villamos energia rendszer használati díjakról és alkalmazásuk szabályairól Decree of the Hungarian Energy and Public Utility Regulatory Authority No. 4/2013 (X.16.) on the Application of Grid Use Charges) 38

39 Basic information on legal sources évi LXXXVI. törvény a villamos ener- 273/2007. (X. 19.) Korm. rendelet a 7/2014. (IX. 12.) MEKH rendelet a villamos Name of legal source (original language) giáról villamos energiáról szóló évi LXXXVI. Törvény egyes rendelkezéseinek végrehajtásáról energia hálózati csatlakozási díjak meghatározásának szempontjairól, a díjak elemeiröl, mértékéröl és alkalmazásuk szabályairól Full name Name (English) Act No. LXXXVI of 2007 on Electric Energy Government Decree No. 273/2007 (X. 19.) on the Implementation of Act No. LXXXVI of 2007 on Electric Energy Decree of the Hungarian Energy and Public Utility Regulatory Authority No. 7/2014. (IX. 12.) on the Determination, the Amount and the Adjustment of the Fees for Connection to the Public Electricity Network Abbreviated form Act No. LXXXVI of 2007 Government Decree No. 273/2007 (X. 19.) Decree No. 7/2014. (IX. 12.) Entry into force Last amended on Future amendments Regulating the electricity market The government decree regulates the Establishing the financial and technical terms Purpose implementation of the Act on Electric and conditions for connection to the public Energy. electricity network 39

40 One of the act's priorities is to promote the The government decree regulates the The use of renewable energy sources may be generation of electricity from renewable implementation of the incentive scheme rewarded with a reduction in the connection energy sources and waste. for renewable energy generation. charges. The decree sets different amounts of connection charges according to the proportion of renewable energy used. Plants that generate electricity from a primary source of energy and for which there is evidence that they produce on average over a period of five Relevance for renewable energy years at least a. 70% of their electricity from renewable energy sources, the connection charges are reduced by 30%. b. 90% of their electricity from renewable energy sources, the connection charges are reduced by 50%. ( 7 (2) Decree No. 7/2014 IX. 12.)) Link to full text of legal source (original language) Link to full text of legal source (English) 40

41 Name of legal source (original language) 4/2013. (X.16.) MEKH rendelet a villamos energiarendszer használati díjakról és alkalmazásuk szabályairól Full name Name (English) Decree of the Hungarian Energy and Public Utility Regulatory Authority No. 4/2013 (X.16.) on the Application of Grid Use Charges Abbreviated form Decree No. 4/2013 (X.16.) Entry into force Last amended on Future amendments Purpose This decree determines the amount and composition of the charges for the use of the electricity grid. Relevance for renewable energy The charges set by the decree also apply to the operators of renewable energy plants. Link to full text of legal source (original language) 41

42 Link to full text of legal source (English) 42

43 Further information Institution (name) Website Name of contact person (optional) Telephone number (head office) (optional) Nemzeti Fejlesztési Minisztérium(NFM) Ministry of National Development ugyfelszolgalat@nfm.gov.hu Magyar Energetikai és Közműszabályozási Hivatial (MEKH) - Hungarian Energy and Public Utility Regulatory Authority (HEA) and the special page on energy efficiency and renewable energy sources: mekh@mekh.hu energiahatekonysag@mekh.hu MAVIR Magyar Villamosenergia-ipari Átviteli Rendszerirányító Zártkörüen Müködö Részvénytársaság Hungarian transmission grid operator info@mavir.hu 43

44 Grid issues Connection to the grid Abbreviated form of legal sources Act No. LXXXVI of 2007 Government Decree No. 273/2007 (X. 19.) Decree No. 7/2014 (IX.12.) Decree No. 4/2013 (X.16.) Contact Authority Magyar Energetikai és Közműszabályozási Hivatal (MEKH) (Hungarian Energy and Public Utility Regulatory Authority) Plant operators are contractually entitled to connection to the grid. The grid operator is obligated to enter into grid connection agreements ( 35 (1), 58 (1) and (2) Act No. LXXXVI 2007). These agreements shall be in line with the grid operator's terms and conditions and the conditions and procedures stipulated by law ( 58 (1) Act No. LXXXVI 2007). According to 35 (3) of Act No. LXXVI 2007, the grid operator is obliged to give privileged access to the grid for electricity generated from low carbon technologies, inter alia renewable energy sources. Overview Entitled party: All potential grid users are entitled to connection to the grid ( 56 (1) Act No. LXXXVI 2007). A grid user is defined as an entity which, for the purpose of exporting or using electricity, is directly or indirectly connected to the public grid ( 3 item 50 Act No. LXXXVI of 2007). This definition also covers the operators of renewable energy plants. Obligated party: The persons obligated are the grid operators and the operators of private electricity networks ( 3 (22), 15, 16 (n), 35 (1), 58 (1) and (2) Act No. LXXXVI of 2007). Procedure Process flow A claim for connection to the grid arises on the date on which a grid user meets the conditions set out in the grid connection agreement. The grid connection process for plants for private use (up to 50 kw) involves the following steps: 44

45 o o Application for connection by the plant operator: A given plant operator shall submit his application for connection to the grid operator. Having received the application, the grid operator is obliged to connect the plant to the grid ( 4 Government Decree No. 273/2007 (X.19)). Plant operator's obligation to provide information: The plant operator is obliged to inform the grid operator in writing or electronically of the technical data of his plant ( 5 (3) Government Decree No. 273/2007). Moreover, when applying for an operating licence, the plant operator is obliged to inform the competent authority whether or not the electricity produced is to be exported to the grid. If the electricity is to be exported, the grid operator shall take this into account when determining the conditions for connection to the grid ( 5 (4) Government Decree No. 273/2007 (X.19)). The grid connection process for micro-plants not subject to licensing (50 kw 500 kw) and small-scale plants (500 kw 50 MW) includes the following steps: o Application for connection: A plant operator shall submit to the grid operator an application for connection in the required format (Annex 2, 2.1. and 2.3. Government Decree No. 273/2007(X.19)). The documents and data to be included in an application for connection are defined by law (Annex 2, 2.4. Government Decree No. 273/2007 (X.19)). o Provision of information and draft agreement on connection to and use of the grid: Having received an application for connection, the grid operator is obliged to inform the plant operator on all relevant requirements for grid connection and use. In addition, the grid operator is obliged to make well-founded suggestions on how the plant could be connected to and use the grid. These suggestions shall include a grid connection point and a cost estimate for the connection works. The draft agreement shall be free of charge. If the plant operator has not provided all the documents and information required for connection to 45

46 o o o or use of the grid, the grid operator shall inform the plant operator that the application is incomplete (Annex 2, 2.5. and 2.6. Government Decree No. 273/2007 (X.19)). The content requirements for draft agreements are defined by law (Annex 2, 2.8. Government Decree No. 273/2007 (X.19)). Connection agreement: If the plant operator accepts the draft agreement on connection, he shall sign it and send it back to the grid operator within the period set by the grid operator. The agreement will take effect on the date on which the grid operator receives the signed agreement (Annex 2, 4.1. Government Decree No. 273/2007(X.19)). If the plant operator does not accept the draft agreement, he shall suggest amendments, sign the amended agreement and send it back to the grid operator. The agreement shall take effect only if the grid operator accepts the amendments, signs the amended agreement and sends it back to the plant operator. The agreement will take effect on the date agreed on by the involved parties (Annex 2, 4.2. Government Decree No. 273/2007 (X.19)). The standard terms of a connection agreement are set out by law. However, the format and further provisions of such an agreement are stipulated in the grid operator's terms and conditions (Annex 2, 6.1. Government Decree No. 273/2007 (X.19)). Grid use agreement: The plant operators are entitled to request grid use agreements. Having received such a request, the grid operator is obliged to sign a grid use agreement and send it to the plant operator. The rules and requirements for grid use agreements are the same as for connection agreements (Annex 2, 7.1. Government Decree No. 273/2007 (X.19)). The standard terms of a grid use agreement are set out by law (Annex 2, 8.1. Government Decree No. 273/2007 (X.19)). Connection to the grid: After all the above-mentioned steps have been 46