Hungary Solar Photovoltaic (PV) Power Market: Outlook 2023÷2032 - 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 $176.3 billion as of 2021.

Hungary's solar photovoltaic (PV) power market value, which was USD XXX million in 2022, is expected to grow to USD XXX million in 2023, 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 2023". 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 2022. The number of fully permitted and ready to build projects will promptly increase in 2022 and next years. Many photovoltaic (PV) power plants have been launched into commercial operation between 2012 and 2022, whilst a pipeline of over 4,300 MW (4.3 GW) solar photovoltaic (PV) power projects is progressing in different stages of the permitting process for grid connection by 2025. Feed-in tariffs for solar PV power entered into force in Hungary at the beginning of 2017 and, combined with the auction (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 Hungary's photovoltaic (PV) power market and will receive an overview of how the changing market environment will impact it. With comprehensive market data, this report brings clear and concise insights to help investors in their decision-making process. As 2021 and 2022 were challenging years for the world photovoltaic (PV) energy industry, the time for making the right decisions during 2023 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 are not limited to:

• Solar resource potential in Hungary
• Historical market data provided from 2012 to 2022 and forecasts until 2032
• Financial Model and Analysis of 50 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's photovoltaic (solar PV) market development 2012 ÷ 2032
• Development scenario of Hungary's photovoltaic (solar PV) sector until 2032
• 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's 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 Forecast Software and Methodology 13
1.2 Limitations 13
2 EXECUTIVE SUMMARY 14
2.1 Historical and Current Development Overview of Photovoltaic (Solar PV) Power Market in Hungary 14
2.2 Hungary Solar Resource Potential 14
2.3 Renewable Energy Sources (RES) Policies and Targets 15
2.4 Key Stakeholders Affecting Photovoltaic (Solar PV) Power Market Development in Hungary 15
2.5 Market Drivers and Constraints 15
2.6 Recent and Pending Changes in Renewable Energy Law in Hungary 16
2.7 Market Forecast Summary 16
3 HUNGARY POLITICAL AND ECONOMIC ENVIRONMENT. PEST ANALYSIS 17
3.1 Basic Country Data 17
3.2 Political Climate and Ruling Party 21
3.3 GDP and Economic Growth 21
3.4 Taxes 24
3.4.1 VAT 25
3.4.2 Income and Corporate Taxes 25
3.4.3 Exemption of excise duty 26
4 CENTRAL-EAST EUROPE (CEE) AND SOUTH-EAST EUROPE (SEE) POWER MARKET 27
4.1 General Electricity Market information 27
4.2 Photovoltaics (Solar PV) in Energy Sector 33
4.3 Single Electricity Market 36
5 CENTRAL-EAST EUROPE (CEE) AND SOUTH-EAST EUROPE (SEE) PHOTOVOLTAIC (SOLAR PV) POWER MARKET 39
5.1 Market Overview 39
5.2 Cumulative Installed Photovoltaic (Solar PV) Capacity and Revenue 40
5.3 Annual Installed Photovoltaic (Solar PV) Capacity 42
5.4 Future Development Trends 42
6 HUNGARY POWER MARKET 44
6.1 Electricity Transmission and Distribution 44
6.2 Electricity Consumption and Generation 46
6.3 Electricity Imports and Exports 50
6.4 Electricity Prices for Business and Households 51
6.5 Renewable Energy Sources (RES) Targets 52
7 HUNGARY PHOTOVOLTAIC (SOLAR PV) POWER MARKET 54
7.1 Why Invest in Photovoltaic (Solar PV) Power in Hungary? 54
7.2 Hungary Solar Resource Potential 55
7.3 Licensing Period Duration 56
7.4 Regional Substation Capacities for Solar PV Power Projects in Hungary 57
7.5 Overview of Photovoltaic (Solar PV) Power Market in Hungary 58
7.6 Market Structure Analysis 59
7.7 Investment Trends and Development Roadmap 60
7.8 Competitive Environment in Photovoltaic (Solar PV) Power Market 61
7.9 Profiles of Key Players and Investors in Photovoltaic (Solar PV) Power Market 62
7.10 Cumulative Installed Photovoltaic (Solar PV) Capacity and Revenue 64
7.11 Annual Installed Photovoltaic (Solar PV) Capacity 66
7.12 Market Prices for Photovoltaic (Solar PV) Power Projects in Hungary in Development, Ready to Build and Operational (Grid Connected) Condition 66
7.13 Key Cost Structure Elements of Photovoltaic (Solar PV) Power Plant in Hungary 67
7.14 Levelized Cost of Energy (LCOE) for Photovoltaic (Solar PV) Power in Hungary 68
7.15 Key Photovoltaic (Solar PV) Power Projects in Hungary Under Development 69
7.16 Mergers and Acquisitions 72
8 DRIVERS AND CONSTRAINTS OF PHOTOVOLTAIC (SOLAR PV) MARKET IN HUNGARY. SWOT ANALYSIS 73
8.1 Market Drivers 73
8.2 Market Drivers Explained 73
8.3 Market Constraints 74
8.4 Market Constraints Explained 74
8.5 SWOT Analysis 75
9 FINANCIAL ANALYSIS OF PHOTOVOLTAIC (SOLAR PV) MARKET IN HUNGARY 79
9.1 Financing Options of Photovoltaic (Solar PV) Power Projects in Hungary 79
9.2 Financial Model and Analysis of 50 MW Photovoltaic (Solar PV) Power Plant investment in Hungary (IRR, WACC, Payback, NPV, Cash Flow, ETC.) 84
10 TECHNOLOGY ANALYSIS 89
10.1 Photovoltaic (Solar PV) Technology Overview 89
10.2 Technology Trends 90
11 EUROPEAN RENEWABLE ENERGY POLICY LANDSCAPE 92
11.1 RES Regulations and EU Directives 92
11.1.1 Precedent EU regulations 92
11.1.2 Most recent EU renewable energy policy developments 93
12 HUNGARY RENEWABLE ENERGY SOURCES (RES) LEGAL AND REGULATORY FRAMEWORK 94
12.1 Main Laws and Regulations 94
12.2 Support Schemes 95
12.3 Green Certificates Trading 95
12.4 Changes in Renewable Energy Law in Hungary in 2019 and 2020 96
12.5 Auction (Tender) Procedure for Photovoltaic (Solar PV) Power Plants in Hungary 99
12.6 Zoning, Planning and Construction Related Authorizations 100
12.7 Environmental Related Authorizations 100
12.7.1 Natura 2000 Network 100
12.7.2 Clean Development Mechanism (CDM) and Joint Implementation (JI) 102
12.8 Energy Law Authorizations 102
12.8.1 Power Generation Licensing and Unlicensed Power Generation Below 1 MW 102
12.8.2 Grid Interconnection 103
12.8.3 Feed-in Tariff (FIT) 104
12.8.4 Power Off-Take for Green Certificates 106
12.8.5 Power Off-Take under Auction (Tender) Scheme 107
12.8.6 Registers for Green Certificates (Guarantees of Origin) 107
12.9 Future Market Pricing Mechanisms 108
13 KEY STAKEHOLDERS AFFECTING PHOTOVOLTAIC (SOLAR PV) POWER MARKET DEVELOPMENT IN HUNGARY 109
13.1 Government Stakeholders 109
13.2 Non-Government Stakeholders 113
13.3 Electricity Generation, Transmission System Operator (TSO) and Distribution System Operators (DSO’s) 114
14 CONCLUSIONS AND RECOMMENDATIONS 122
15 LIST OF ABBREVIATIONS 124
16 REFERENCES 126
17 DISCLAIMER 128
APPENDIX I. SOLAR RESOURCE MAPS OF EUROPE AND HUNGARY 129

Map 1: Where is Hungary on the European Map 17
Map 2: Hungary Road Network 18
Map 3: Hungary Administrative Regions Map 20
Map 4: Hungary Electricity Grids Network 45
Map 5: Solar Irradiation and Solar Electricity Potential for Optimally Inclined Photovoltaic Modules in Hungary 55
MAP 7: Hungary Natura 2000 Areas Map 101
MAP 8: Solar Irradiation and Solar Electricity Potential for Horizontally Mounted Photovoltaic Modules in Hungary 129
Map 9: Solar Irradiation and Solar Electricity Potential for Horizontally Mounted Photovoltaic Modules in Hungary 130
Map 10: Solar Irradiation and Solar Electricity Potential for Optimally Inclined Photovoltaic Modules in Europe 131

Chart 1: Hungary Real GDP Growth for the Period 2012 ÷ 2032 in % (including forecast) 22
Chart 2: Hungary GDP Growth Compared to EU-27 for the Period 2012 ÷ 2032 in % (including forecast) 23
Chart 3: Corporate Tax Income in Selected Central-East Europe (CEE) and South-East Europe (SEE) Countries 25
Chart 4: Physical Energy Flows Values in GW in Central-East Europe (CEE) and South-East Europe (SEE) in 2022 28
Chart 5: Breakdown of Electricity Production by Source Type in the EU-27 in 2022 (in %) 30
Chart 6: Average Base Load Electricity Price in Selected European Countries (€/MWh): 2012 – 2022; Renewable Market WatchTM 31
Chart 7: Forecast for RES Generation Capacity by Source Type in the EU by 2030 (in GW) 32
Chart 8: New Installed and Decommissioned Power Capacity by Source Type in the EU in 2022 (MW) 33
Chart 9: Age of Power Plants in Europe in 2021 34
Chart 10: Share of New Power Generation Capacities Added in the EU 27 in 2021 (MW) 35
Chart 11: Annual Installed Power Generating Capacity (MW) and Renewable Share (in %) 2012 – 2022 in the EU 36
Chart 12: Number of Filled Patents for Solar PV Technologies in CEE & SEE Countries 2012 – 2022, EPO PATSTAT 39
Chart 13: Cumulative Installed Capacity of Photovoltaic (Solar PV) Power Plants (in MW) in Central-East Europe (CEE) and South-East Europe (SEE) 2012 ÷ 2032, including forecast 40
Chart 14: Cumulative Revenue of Photovoltaic (Solar PV) Power Plants (in Millions USD) in Central-East Europe (CEE) and South-East Europe (SEE) 2012 ÷ 2032, including forecast 41
Chart 15: Annual Installed Capacity of Photovoltaic (Solar PV) Power Plants (in MW) in Central-East Europe (CEE) and South-East Europe (SEE) 2012 ÷ 2032, including forecast 42
Chart 16: Hungary Power Market Structure 44
Chart 17: Share of RES electricity from Total Installed Power Capacity in Hungary in 2021 47
Chart 18: Hungary Total Annual Electricity Consumption (in TWh) 2012 – 2022 48
Chart 19: Hungary Power Generation Capacity Breakdown by Source (Fuel) Type in 2022 49
Chart 20: Electricity Imports and Exports in Hungary 2012 ÷ 2032 (in million kWh) including forecast 51
Chart 21: Hungary Targets for Renewable Energy Sources by 2030 (in %) set by National Renewable Energy Action Plan (NREAP) 53
Chart 22: Chart: Number of Filled Patents for Solar PV Technologies in Hungary 2012 – 2022, EPO PATSTAT 61
Chart 23: Cumulative Installed Capacity of Photovoltaic (Solar PV) Power Plants in Hungary (in MW) 2012 ÷ 2032, including forecast 64
Chart 24: Cumulative Revenue of Photovoltaic (Solar PV) Power Plants in Hungary (in Millions EUR) 2012 ÷ 2032, including forecast 65
Chart 25: Annual Installed Capacity of Photovoltaic (Solar PV) Power Plants in Hungary (in MW) 2012 ÷ 2032, including forecast 66
Chart 26: Levelized Cost of Energy (LCOE) for Photovoltaic (Solar PV) Power and Other Renewable Technologies in Hungary by 2030 (in €) 68
Chart 27: Hungarian SEFF Structure 80
Chart 28: Cumulative Cash Flows and Break-Even Point of 50 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 87
Chart 29: Photovoltaic (Solar PV) System Price Evolution (€/Wp) 2002 ÷ 2022 90
Chart 30: Market Shares by Sales of the Distribution System Operators (DSOs) in Hungary in 2022 114

Table 1: Electricity Prices for Business and Households 52
Table 2: Support Schemes for RES Generation in the EU Countries and Hungary 54
Table 3: Market Prices for Photovoltaic (Solar PV) Projects in Hungary for 2023 ÷ 2032 in Development, Ready to Build and Operational (Grid Connected) Condition (2022 Update) 67
Table 4: Key Cost Structure Elements of Photovoltaic (Solar PV) Power Plant in Hungary in 2023 68
Table 5: Database with Major Operational, Under Construction and Planned Photovoltaic (Solar PV) Projects in Hungary 70
Table 6: Key Financial Parameters of 50 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 85
Table 7: Key Financial Viability Indicators of 50 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary (IRR, NPV, Payback, Benefit-Cost) 85
Table 8: Project Costs and Savings (Income) Summary of 50 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary 86
Table 9: Yearly Cash Flows of 50 MW Photovoltaic (Solar PV) Power Plant Investment in Hungary (Pre-tax, After-tax, Cumulative) 87
Table 10: Crystalline Module Price Trend in 2023 91