Hungary Solar Photovoltaic (PV) Power Market: Outlook 2019÷2028 - Single User

With a land area of 93,028 km2, Hungary is a landlocked country in Central Europe. It measures about 250 km from north to south and 524 km from east to west. It has 2,106 km of boundaries, shared with Austria to the west, Serbia, Croatia and Slovenia to the south and southwest, Romania to the southeast, Ukraine to the northeast, and Slovakia to the north. The country’s landscape is mostly flat. The population was 9.82 million, and the current gross domestic product (GDP) was $155.7 billion as of 2018.

Hungary solar photovoltaic (PV) power market value, which was USD XXX million in 2018, is expected to grow to USD XXX million in 2019, at a CAGR of XXX per cent. Due to geographical conditions, most of the country’s power demand is met by importing energy from neighbouring countries. The majority of the power is imported from Slovakia, Austria, and Ukraine, and the main export countries are Croatia and Serbia. Hungary has good potential for the use of solar energy, as the number of sunny hours in Hungary is between 1,950-2,150 per year at an intensity of 1,200 kWh/m2 per year. It is estimated the theoretical potential could amount to several tens of thousands of MW.

Under Hungary’s National Energy Strategy up until 2030, Hungary will aim at ensuring the long-term security of energy supplies and increasing the share of renewable sources in its electricity generation mix, particularly solar photovoltaic, but also notes that fossil fuels, mainly natural gas, will be necessary for future generations. Developing further nuclear energy capabilities was also outlined as an option to cover demand. The National Energy Strategy stipulates that the construction of new power plants will be required to replace those that will become obsolete in the future. The country’s main strategy to meet the growing need for power is to reduce the energy dependency by increasing energy efficiency, increased the use of renewable resources, natural gas, nuclear sources, and connecting to the European power infrastructure.

Hungary is ranked among the top 10 countries by attractiveness for solar photovoltaic (PV) energy investments among CEE & SEE countries by Renewable Market Watch in their yearly updated "Attractiveness index for solar photovoltaic (PV) energy investments in CEE & SEE countries in 2018". The country’s main strategy to meet the growing need for power is to reduce energy dependency by increasing energy efficiency, increased the use of renewable resources and nuclear sources.

The current cumulative installed photovoltaic (PV) power capacity in the country is XXX MW at the end of 2018, and the number of fully permitted and ready to build projects will promptly increase in 2019 and next years. First photovoltaic (PV) power plants have been launched into commercial operation between 2012 and 2017, whilst pipeline of over 2,000 MW (2 GW) solar photovoltaic (PV) power projects are progressing in different stages of permitting process for grid connection by 2020. New feed-in tariffs for solar PV power entered into force in Hungary at the beginning of 2017 and, combined with action (tender) procedure, are expected to pave the way for the fast growth of Hungary's solar photovoltaic energy market.

The report provides a complete picture of the market situation, dynamics, current issues and prospects. You will find more than 125 pages of valuable information in this unique, in-depth analysis of the Hungary photovoltaic (PV) power market. With comprehensive market data, this report brings clear and concise insights, to help investors in their decision-making process. A fast-changing market environment requires relevant and accurate information. For your convenience, we offer the opportunity for orders with customized report content Reasons to buy this market report are, but not limited to:

• Solar resource potential in Hungary
• Historical market data provided from 2000 to 2018 and forecasts until 2028
• Financial Model and Analysis of 5 MW Photovoltaic (Solar PV) Power Plant investment in Hungary (IRR, WACC, Payback, NPV, Cash Flow, etc.)
• Over 45 charts, tables and maps
• Overview of Hungary photovoltaic (solar PV) market development 2008 ÷ 2028
• Development scenario of Hungary photovoltaic (solar PV) sector until 2028
• Major active and upcoming solar PV power plants in Hungary
• Current market prices of fully permitted and operational solar photovoltaic projects
• Attractiveness index for solar photovoltaic investments in Hungary and the CEE & SEE countries
• SWOT Analysis (detailed in 5 pages)
• Overview of Hungary legal and regulatory framework for RES generation
• Review of most relevant financing and supporting incentives
• Project developers, EPC providers and Consultants in Hungary
• Key organizations and stakeholders affecting the development of the solar photovoltaic (PV) sector in Hungary
• Investment potential and opportunities

On the next pages, you will see the full table of content of this report. To order this report, just click on the button "ADD TO CART". The table of contents is referential and may vary upon report updates. If you have any other questions or data requests, please do not hesitate to call us on ++44 203 807 00 79 or write an e-mail to orders@renewablemarketwatch.com

TABLE OF CONTENTS 3
FOREWORD 8
1 METHODOLOGY AND LIMITATIONS 9
1.1 Research Methodology 9
1.2 Limitations 10
2 EXECUTIVE SUMMARY 11
2.1 Historical and Current Development Overview of Photovoltaic (Solar PV) Power Market in Hungary 11
2.2 Hungary Solar Resource Potential 12
2.3 Key Stakeholders Affecting Photovoltaic (Solar PV) Power Market Development in Hungary 12
2.4 Market Drivers and Constraints 13
2.5 Recent and Pending Changes in Renewable Energy Law in Hungary 13
2.6 Market Forecast Summary 14
3 HUNGARY POLITICAL AND ECONOMIC ENVIRONMENT. PEST ANALYSIS 15
3.1 Basic Country Data 15
3.2 Political Climate and Ruling Party 19
3.3 GDP and Economic Growth 19
3.4 Taxes 22
3.4.1 VAT 22
3.4.2 Income and Corporate Taxes 23
4 CENTRAL-EAST EUROPE (CEE) AND SOUTH-EAST EUROPE (SEE) POWER MARKET 24
4.1 General Electricity Market information 24
4.2 Photovoltaics (Solar PV) in Energy Sector 30
4.3 Single Electricity Market 34
5 CENTRAL-EAST EUROPE (CEE) AND SOUTH-EAST EUROPE (SEE) PHOTOVOLTAIC (SOLAR PV) POWER MARKET 37
5.1 Market Overview 37
5.2 Cumulative Installed Photovoltaic (Solar PV) Capacity and Revenue 38
5.3 Annual Installed New Photovoltaic (Solar PV) Capacity 40
5.4 Future Development Trends 40
6 HUNGARY POWER MARKET 41
6.1 Electricity Transmission and Distribution 41
6.2 Electricity Consumption and Generation 43
6.3 Electricity Imports and Exports 45
6.4 Electricity Prices for Business and Households 45
6.5 Renewable Energy Sources (RES) Targets 46
7 HUNGARY PHOTOVOLTAIC (SOLAR PV) POWER MARKET 47
7.1 Why Invest in Photovoltaic (Solar PV) Power in Hungary? 47
7.2 Hungary Solar Resource Potential 49
7.3 Licensing Period Duration 50
7.4 Regional Substation Capacities for Solar PV Power Projects in Hungary 50
7.5 Overview of Photovoltaic (Solar PV) Power Market in Hungary 51
7.6 Market Structure Analysis 53
7.7 Investment Trends and Development Roadmap 53
7.8 Competitive Environment in Photovoltaic (Solar PV) Power Market 54
7.9 Profiles of Key Players and Investors in Photovoltaic (Solar PV) Power Market 54
7.10 Cumulative Installed Photovoltaic (Solar PV) Capacity and Revenue 57
7.11 Annual New Installed Photovoltaic (Solar PV) Capacity 59
7.12 Market Prices for Photovoltaic (Solar PV) Power Projects in Hungary in Development, Ready to Build and Operational (Grid Connected) Condition 59
7.13 Key Cost Structure Elements of Photovoltaic (Solar PV) Power Plant in Hungary 60
7.14 Levelized Cost of Energy (LCOE) for Photovoltaic (Solar PV) Power in Hungary 61
7.15 Key Photovoltaic (Solar PV) Power Projects in Hungary 62
7.16 Mergers and Acquisitions 65
8 DRIVERS AND CONSTRAINTS OF PHOTOVOLTAIC (SOLAR PV) MARKET IN HUNGARY. SWOT ANALYSIS 67
8.1 Market Drivers 67
8.2 Market Drivers Explained 67
8.3 Market Constraints 68
8.4 Market Constraints Explained 68
8.5 SWOT Analysis 69
9 FINANCIAL ANALYSIS OF PHOTOVOLTAIC (SOLAR PV) MARKET IN HUNGARY 72
9.1 Financing Options of Photovoltaic (Solar PV) Power Projects in Hungary 72
9.2 Financial Model and Analysis of 5 MW Photovoltaic (Solar PV) Power Plant investment in Hungary (IRR, Discount rate, Payback, NPV, Cash Flow, ETC.) 76
10 TECHNOLOGY ANALYSIS 80
10.1 Photovoltaic (Solar PV) Technology Overview 80
10.2 Technology Trends 81
11 EUROPEAN RENEWABLE ENERGY POLICY LANDSCAPE 84
11.1 RES Regulations and EU Directives 84
11.1.1 Precedent EU regulations 84
11.2 Renewable energy mandatory targets for CEE & SEE countries set out by the EU 85
11.2.1 Interim targets set out by the EU 85
11.2.2 National support schemes flexibility allowed by the EU and progress reporting 86
11.2.3 Energy Community (EC) Treaty 87
11.3 EU 2030 framework for climate and energy policies 88
11.3.1 Targets 91
11.3.2 Coherence of policy instruments 93
11.3.3 Fostering the competitiveness of the EU economy 94
12 HUNGARY RENEWABLE ENERGY SOURCES (RES) LEGAL AND REGULATORY FRAMEWORK 96
12.1 Main Laws and Regulations 96
12.2 National Energy Strategy 2030 98
12.3 Zoning, Planning and Construction Related Authorizations 98
12.3.1 Zoning Plans Procedure 98
12.3.2 Building Permit (Construction License) Procedure 99
12.4 Environmental Related Authorizations 99
12.4.1 Natura 2000 Network 99
12.4.2 Clean Development Mechanism (CDM) and Joint Implementation (JI) 101
12.5 Energy Law Authorizations 101
12.5.1 Power Generation Licensing 101
12.5.2 Grid Interconnection 102
12.5.3 Power Off-Take 103
12.5.4 Green Premium (Premium Tariff) 104
12.5.5 Feed-in Tariff 104
12.5.6 Net-Metering 105
12.5.7 Green Certificates (Guarantees of Origin) 106
12.6 Changes in Hungarian Renewable Energy Law from 2016 and 2017 107
12.6.1 New Renewable Energy Support Scheme (System) - METAR 107
12.7 Future Market Pricing Mechanisms 107
13 KEY STAKEHOLDERS AFFECTING PHOTOVOLTAIC (SOLAR PV) POWER MARKET DEVELOPMENT IN HUNGARY 108
13.1 Government Stakeholders 108
13.2 Non-Government Stakeholders 109
13.3 Electricity Generation, Transmission System Operator (TSO) and Distribution System Operators (DSO’s) 110
14 CONCLUSIONS AND RECOMMENDATIONS 115
15 LIST OF ABBREVIATIONS 118
16 REFERENCES 120
17 DISCLAIMER 122
APPENDIX I. SOLAR RESOURCE MAPS OF EUROPE AND HUNGARY 123
18 APPENDIX II. CALCULATIONS DESCRIPTION TO FINANCIAL MODEL 126

Map 1: Where is Hungary on the World Map 15
Map 2: Hungary Road Network 16
Map 3: Hungary Administrative Regions Map 18
Map 4: Hungary Electricity Grids Network 42
Map 5: Solar Resource Map of Hungary 48
Map 6: Solar Irradiation and Solar Electricity Potential for Optimally Inclined Photovoltaic Modules in Hungary 49
MAP 7: Hungary Natura 2000 Areas Map 100
MAP 8: Solar Irradiation and Solar Electricity Potential for Horizontally Mounted Photovoltaic Modules in Hungary 123
Map 9: Solar Irradiation and Solar Electricity Potential for Horizontally Mounted Photovoltaic Modules in Hungary 124
Map 10: Solar Irradiation and Solar Electricity Potential for Optimally Inclined Photovoltaic Modules in Europe 125

Chart 1: Hungary Real GDP Growth (in %) for the Period 2008 ÷ 2028 (including forecast) 18
Chart 2: Hungary GDP Growth Compared to EU-28 for the Period 2008 ÷ 2028 (including forecast) 20
Chart 3: Corporate Tax Income in Selected Central-East Europe (CEE) and South-East Europe (SEE) Countries 22
Chart 4: Physical Energy Flows Values in GW in Central-East Europe (CEE) and South-East Europe (SEE) in 2019 24
Chart 5: Breakdown of Electricity Production by Source Type in the EU-28 in 2019 (in %) 26
Chart 6: Share of Renewables in Electricity Generation in Selected Central-East Europe (CEE) and South-East Europe (SEE) Countries, 2019 (in %) 27
Chart 7: Average Base Load Electricity Price in Selected European Countries (€/MWh): 2008 – 2019; Renewable Market WatchTM 28
Chart 8: Forecast for RES Generation Capacity by Source Type in the EU to 2020 and 2030 (in GW) 29
Chart 9: New Installed and Decommissioned Power Capacity by Source Type in the EU in 2019 (MW) 30
Chart 10: Age of Power Plants in Europe in 2019 in MW 31
Chart 11: Share of New Power Generation Capacities Added in the EU 28 in 2019 (MW) 32
Chart 12: Annual Installed Power Generating Capacity (MW) and Renewable Share (in %) 2000 – 2019 in the EU 33
Chart 13: Net Installed and Decommissioned Power Generation Capacity in the EU 28 for 2019 (GW) 34
Chart 14: Number of Filled Patents for Solar PV Technologies in CEE & SEE Countries 2008 – 2019, EPO PATSTAT 37
Chart 15: Cumulative Installed Capacity of Photovoltaic (Solar PV) Power Plants (in MW) in Central-East Europe (CEE) and South-East Europe (SEE) 2008 ÷ 2028, including forecast 38
Chart 16: Cumulative Revenue of Photovoltaic (Solar PV) Power Plants (in Millions €) in Central-East Europe (CEE) and South-East Europe (SEE) 2008 ÷ 2028, including forecast 39
Chart 17: Annual Installed New Capacity of Photovoltaic (Solar PV) Power Plants (in MW) in Central-East Europe (CEE) and South-East Europe (SEE) 2008 ÷ 2028, including forecast 40
Chart 18: Hungary Power Market Structure 41
Chart 19: Share of RES Electricity (incl. Large Hydro) from Total Installed Power Capacity in Hungary in 2019 44
Chart 20: Hungary Total Annual Electricity Consumption (in TWh) 2008 ÷ 2019 45
Chart 21: Hungary Power Generation Capacity Breakdown (in %) by Source (Fuel) Type in 2019 45
Chart 22: Number of Filled Patents for Solar PV Technologies in Hungary 2008– 2019, EPO PATSTAT 54
Chart 23: Cumulative Installed Capacity of Photovoltaic (Solar PV) Power Plants in Hungary (in MW) 2008 ÷ 2028, including forecast 58
Chart 24: Cumulative Revenue of Photovoltaic (Solar PV) Power Plants in Hungary (in Millions €) 2008 ÷ 2028 including forecast 59
Chart 25: Annual New Installed Capacity of Photovoltaic (Solar PV) Power Plants in Hungary (in MW) 2008÷ 2028, including forecast 60
Chart 26: Levelized Cost of Energy (LCOE) for Photovoltaic (Solar PV) Power and Other Renewable Technologies in Hungary 62
Chart 27: Cumulative Cash Flows and Break-Even Point of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 80
Chart 28: Historical and Forecasted Utility Solar PV System Pricing ($/Wdc) 2009 ÷ 2019 82
Chart 29: Market Shares by Sales of the Distribution System Operators in Hungary in 2019 111

Table 1: Electricity Prices for Business and Households 47
Table 2: Support Schemes for RES Generation in the EU Countries and Hungary 48
Table 3: Substations in Hungary 52
Table 4: Market Prices for Photovoltaic (Solar PV) Projects in Hungary for 2019 ÷ 2028 in Development, Ready to Build and Operational (Grid Connected) Condition (2019 Update) 61
Table 5: Key Cost Structure Elements of Photovoltaic (Solar PV) Power Plant in Hungary 2019 62
Table 6: Database with Major Operational, Under Construction and Planned Photovoltaic (Solar PV) Projects in Hungary 64
Table 7: Key Financial Parameters of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 78
Table 8: Key Financial Viability Indicators of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary (IRR, NPV, Payback, Benefit-Cost) 78
Table 9: Project Costs and Savings (Income) Summary of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 79
Table 10: Yearly Cash Flows of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary (Pre-tax, After-tax, Cumulative) 80
Table 11: Crystalline Module Price Trend in August 2019 84
Table 12: Green Premium (Premium Tariff) Support Scheme for Solar PV in Hungary 105
Table 13: Feed-in-tariffs for Solar PV in Hungary 106
Table 14: Net Metering Support Scheme for Solar PV in Hungary 107