Hungary Solar Photovoltaic (PV) Power Market: Outlook 2021÷2030 - 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 2020, is expected to grow to USD XXX million in 2021, 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 GWs.

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 energy dependency by increasing energy efficiency, increasing 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 2021". 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 2020. The number of fully permitted and ready to build projects will promptly increase in 2021 and next years. First photovoltaic (PV) power plants have been launched into commercial operation between 2012 and 2020, 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 2022. 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 and will receive an overview of how the COVID-19 (Coronavirus) will impact it. With comprehensive market data, this report brings clear and concise insights, to help investors in their decision-making process. As 2019 and 2020 were challenging years for the world photovoltaic (PV) energy industry, the time for making the right decisions during 2021 and the next few years is limited. 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 2010 to 2020 and forecasts until 2030
• 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 2010 ÷ 2030
• Development scenario of Hungary photovoltaic (solar PV) sector until 2030
• 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 11
2.3 Renewable Energy Sources (RES) Policies and Targets 12
2.4 Key Stakeholders Affecting Photovoltaic (Solar PV) Power Market Development in Hungary 12
2.5 Market Drivers and Constraints 12
2.6 Recent and Pending Changes in Renewable Energy Law in Hungary 13
2.7 Market Forecast Summary 13
3 HUNGARY POLITICAL AND ECONOMIC ENVIRONMENT. PEST ANALYSIS 14
3.1 Basic Country Data 14
3.2 Political Climate and Ruling Party 18
3.3 GDP and Economic Growth 18
3.4 Taxes 21
3.4.1 VAT 22
3.4.2 Income and Corporate Taxes 22
3.4.3 Exemption of excise duty 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 33
5 CENTRAL-EAST EUROPE (CEE) AND SOUTH-EAST EUROPE (SEE) PHOTOVOLTAIC (SOLAR PV) POWER MARKET 36
5.1 Market Overview 36
5.2 Cumulative Installed Photovoltaic (Solar PV) Capacity and Revenue 37
5.3 Annual Installed Photovoltaic (Solar PV) Capacity 39
5.4 Future Development Trends 39
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 47
6.4 Electricity Prices for Business and Households 48
6.5 Renewable Energy Sources (RES) Targets 49
7 HUNGARY PHOTOVOLTAIC (SOLAR PV) POWER MARKET 51
7.1 Why Invest in Photovoltaic (Solar PV) Power in Hungary? 51
7.2 Hungary Solar Resource Potential 52
7.3 Licensing Period Duration 53
7.4 Regional Substation Capacities for Solar PV Power Projects in Hungary 54
7.5 Overview of Photovoltaic (Solar PV) Power Market in Hungary 55
7.6 Market Structure Analysis 56
7.7 Investment Trends and Development Roadmap 57
7.8 Competitive Environment in Photovoltaic (Solar PV) Power Market 58
7.9 Profiles of Key Players and Investors in Photovoltaic (Solar PV) Power Market 59
7.10 Cumulative Installed Photovoltaic (Solar PV) Capacity and Revenue 61
7.11 Annual Installed Photovoltaic (Solar PV) Capacity 63
7.12 Market Prices for Photovoltaic (Solar PV) Power Projects in Hungary in Development, Ready to Build and Operational (Grid Connected) Condition 63
7.13 Key Cost Structure Elements of Photovoltaic (Solar PV) Power Plant in Hungary 64
7.14 Levelized Cost of Energy (LCOE) for Photovoltaic (Solar PV) Power in Hungary 65
7.15 Key Photovoltaic (Solar PV) Power Projects in Hungary Under Development 66
7.16 Mergers and Acquisitions 69
8 DRIVERS AND CONSTRAINTS OF PHOTOVOLTAIC (SOLAR PV) MARKET IN HUNGARY. SWOT ANALYSIS 70
8.1 Market Drivers 70
8.2 Market Drivers Explained 70
8.3 Market Constraints 71
8.4 Market Constraints Explained 71
8.5 SWOT Analysis 72
9 FINANCIAL ANALYSIS OF PHOTOVOLTAIC (SOLAR PV) MARKET IN HUNGARY 76
9.1 Financing Options of Photovoltaic (Solar PV) Power Projects in Hungary 76
9.2 Financial Model and Analysis of 5 MW Photovoltaic (Solar PV) Power Plant investment in Hungary (IRR, WACC, Payback, NPV, Cash Flow, ETC.) 81
10 TECHNOLOGY ANALYSIS 86
10.1 Photovoltaic (Solar PV) Technology Overview 86
10.2 Technology Trends 87
11 EUROPEAN RENEWABLE ENERGY POLICY LANDSCAPE 89
11.1 RES Regulations and EU Directives 89
11.1.1 Precedent EU regulations 89
11.1.2 Most recent EU renewable energy policy developments 90
12 HUNGARY RENEWABLE ENERGY SOURCES (RES) LEGAL AND REGULATORY FRAMEWORK 91
12.1 Main Laws and Regulations 91
12.2 Support Schemes 92
12.3 Green Certificates Trading 92
12.4 Changes in Renewable Energy Law in Hungary in 2020 93
12.5 Auction (Tender) Procedure for Photovoltaic (Solar PV) Power Plants in Hungary 96
12.6 Zoning, Planning and Construction Related Authorizations 97
12.7 Environmental Related Authorizations 97
12.7.1 Natura 2000 Network 97
12.7.2 Clean Development Mechanism (CDM) and Joint Implementation (JI) 99
12.8 Energy Law Authorizations 99
12.8.1 Power Generation Licensing and Unlicensed Power Generation Below 1 MW 99
12.8.2 Grid Interconnection 100
12.8.3 Feed-in Tariff (FIT) 101
12.8.4 Power Off-Take for Green Certificates 103
12.8.5 Power Off-Take under Auction (Tender) Scheme 104
12.8.6 Registers for Green Certificates (Guarantees of Origin) 104
12.9 Future Market Pricing Mechanisms 105
13 KEY STAKEHOLDERS AFFECTING PHOTOVOLTAIC (SOLAR PV) POWER MARKET DEVELOPMENT IN HUNGARY 106
13.1 Government Stakeholders 106
13.2 Non-Government Stakeholders 110
13.3 Electricity Generation, Transmission System Operator (TSO) and Distribution System Operators (DSO’s) 111
14 CONCLUSIONS AND RECOMMENDATIONS 119
15 LIST OF ABBREVIATIONS 121
16 REFERENCES 123
17 DISCLAIMER 125
APPENDIX I. SOLAR RESOURCE MAPS OF EUROPE AND HUNGARY 126

Map 1: Where is Hungary on the European Map 14
Map 2: Hungary Road Network 15
Map 3: Hungary Administrative Regions Map 17
Map 4: Hungary Electricity Grids Network 42
Map 5: Solar Irradiation and Solar Electricity Potential for Optimally Inclined Photovoltaic Modules in Hungary 52
MAP 6: Hungary Natura 2000 Areas Map 98
MAP 7: Solar Irradiation and Solar Electricity Potential for Horizontally Mounted Photovoltaic Modules in Hungary 126
Map 8: Solar Irradiation and Solar Electricity Potential for Horizontally Mounted Photovoltaic Modules in Hungary 127
Map 9: Solar Irradiation and Solar Electricity Potential for Optimally Inclined Photovoltaic Modules in Europe 128

Chart 1: Hungary Real GDP Growth for the Period 2010 ÷ 2030 in % (including forecast) 19
Chart 2: Hungary GDP Growth Compared to EU-27 for the Period 2010 ÷ 2030 in % (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 2020 25
Chart 5: Breakdown of Electricity Production by Source Type in the EU-28 in 2020 (in %) 27
Chart 6: Average Base Load Electricity Price in Selected European Countries (€/MWh): 2010 – 2020; Renewable Market WatchTM 28
Chart 7: Forecast for RES Generation Capacity by Source Type in the EU to 2020 and 2030 (in GW) 29
Chart 8: New Installed and Decommissioned Power Capacity by Source Type in the EU in 2020 (MW) 30
Chart 9: Age of Power Plants in Europe in 2020 31
Chart 10: Share of New Power Generation Capacities Added in the EU 28 in 2020 (MW) 32
Chart 11: Annual Installed Power Generating Capacity (MW) and Renewable Share (in %) 2010 – 2020 in the EU 33
Chart 12: Number of Filled Patents for Solar PV Technologies in CEE & SEE Countries 2010 – 2020 36
Chart 13: Cumulative Installed Capacity of Photovoltaic (Solar PV) Power Plants (in MW) in Central-East Europe (CEE) and South-East Europe (SEE) 2010 ÷ 2030, including forecast 37
Chart 14: Cumulative Revenue of Photovoltaic (Solar PV) Power Plants (in Millions USD) in Central-East Europe (CEE) and South-East Europe (SEE) 2010 ÷ 2030, including forecast 38
Chart 15: Annual Installed Capacity of Photovoltaic (Solar PV) Power Plants (in MW) in Central-East Europe (CEE) and South-East Europe (SEE) 2010 ÷ 2030, including forecast 39
Chart 16: Hungary Power Market Structure 41
Chart 17: Share of RES electricity from Total Installed Power Capacity in Hungary in 2020 44
Chart 18: Hungary Total Annual Electricity Consumption (in TWh) 2010 – 2020 45
Chart 19: Hungary Power Generation Capacity Breakdown by Source (Fuel) Type in 2020 46
Chart 20: Electricity Imports and Exports in Hungary 2010 ÷ 2030 (in million kWh) including forecast 48
Chart 21: Hungary Targets for Renewable Energy Sources by 2030 (in %) set by National Renewable Energy Action Plan (NREAP) 50
Chart 22: Chart: Number of Filled Patents for Solar PV Technologies in Hungary 2010 – 2020 58
Chart 23: Cumulative Installed Capacity of Photovoltaic (Solar PV) Power Plants in Hungary (in MW) 2010 ÷ 2030, including forecast 61
Chart 24: Cumulative Revenue of Photovoltaic (Solar PV) Power Plants in Hungary (in Millions EUR) 2010 ÷ 2030, including forecast 62
Chart 25: Annual Installed Capacity of Photovoltaic (Solar PV) Power Plants in Hungary (in MW) 2010 ÷ 2030, including forecast 63
Chart 26: Levelized Cost of Energy (LCOE) for Photovoltaic (Solar PV) Power and Other Renewable Technologies in Hungary by 2030 (in €) 65
Chart 27: Hungarian SEFF Structure 77
Chart 28: Cumulative Cash Flows and Break-Even Point of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 84
Chart 29: Photovoltaic (Solar PV) System Price Evolution (€/Wp) 1990 ÷ 2020 87
Chart 30: Market Shares by Sales of the Distribution System Operators (DSOs) in Hungary in 2020 111

Table 1: Electricity Prices for Business and Households 49
Table 2: Support Schemes for RES Generation in the EU Countries and Hungary 51
Table 3: Market Prices for Photovoltaic (Solar PV) Projects in Hungary for 2021 ÷ 2030 in Development, Ready to Build and Operational (Grid Connected) Condition (2020 Update) 64
Table 4: Key Cost Structure Elements of Photovoltaic (Solar PV) Power Plant in Hungary in 2021 65
Table 5: Database with Major Operational, Under Construction and Planned Photovoltaic (Solar PV) Projects in Hungary 67
Table 6: Key Financial Parameters of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 82
Table 7: Key Financial Viability Indicators of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary (IRR, NPV, Payback, Benefit-Cost) 82
Table 8: Project Costs and Savings (Income) Summary of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 83
Table 9: Yearly Cash Flows of 5 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary (Pre-tax, After-tax, Cumulative) 84
Table 10: Crystalline Module Price Trend in 2021 88