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Hungary extends grid connection long-stop-date for new power plants

Hungary
02/02/2024
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On 31 January 2024, the Hungarian government adopted the amendment to Government Decree 526/2022. (XII. 16.) that amends the Electricity Act regarding rules for grid connection. Under the original Grid Connection Government Decree developers of new power generation capacities were required to file a declaration with the competent DSO/TSO on the calendar year in which they intend to connect to the grid and pay both a financial security and an additional financial security. The DSO/TSO would then confirm or modify the calendar year for the grid connection.

The amendment to the Grid Connection Government Decree has introduced the following changes:

  • Formerly, the long-stop-date for grid connection for a power plant was the 30th day following the calendar year that the developer had designated as the calendar year for grid connection. (If the developer designated 2024 as the calendar year for grid connection, its long-stop-date was 30 January 2025). This long stop date has been extended until 30 March following the calendar year designated for grid connection (i.e. until 30 March 2025 in the cited example).
  • Those power plants that designated 2023 for grid connection and failed to comply with their long stop date of 30 January 2024 can now request the extension of their long-stop-dates with an extra calendar year. The DSOs/TSO will accept such requests on the following conditions:
    • the request has been sent to the DSO/TSO in a verifiable manner by 5 February 2024; and
    • the developer has a construction e-log verifying that the handover of the construction site had occurred.
  • In case a developer requests the extension of its 2023 calendar year for grid connection, it will lose the part the financial security and additional financial security exceeding the grid connection fee. The DSO/TSO will not refund the relevant amount. If provided by bank guarantee, it will be drawn down.
  • Should the developer fail to meet the long-stop-date extended with an extra calendar year, it will lose its right of disposal over the grid connection opportunity and further to that it will lose the financial security and additional financial security it had provided.

For further information on the amended decree and the Hungarian electrical power sector, contact your regular CMS advisor or local CMS experts.

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