New subsidies on the energy market cannot be avoided!

In recent decades, we have become accustomed to the fact that energy efficiency receives special attention when the economic/political environment becomes turbulent and unpredictable.

Dr. László Palkovics, Minister of the Ministry of Technology and Industry, gave a presentation on domestic energy challenges and government goals at the Huawei Tech4Green – Digital Power Summit conference. In his presentation, he also touched on the amount of state support expected in the energy storage market in the coming years.

Hungary intends to reduce its carbon dioxide emissions by at least 401 TP3T by 2030, and has set a target of at least 211 TP3T of renewable energy in its final energy consumption. At the conference, the minister said about the focal points:

"We need to develop our networks. We have an excellent network in the field of gas, but the same cannot be said for electricity."

László Palkovics explained the situation, then added that

"progress in the utilization of solar energy is significantly faster than we expected. By 2030, based on the current trend, we will maintain a solar energy capacity of 12,000-13,000 megawatts."

The government is thinking about several green investment directions, of which this is outstanding energy storage, respectively green public transport area, but big cities can be classified as possible investment directions district heating systemits development, respectively energy efficiency of residential and public buildingsrepair of; strengthening of domestic energy production (application of photovoltaic, flexible gas technologies, maintenance of nuclear capacity, production of biogas); development of the electricity network (energy storage, traditional network development, smart solutions); the creation of the hydrogen ecosystem (carbon-free production, industrial and transport application, natural gas replacement). 

"The issue of energy storage cannot be avoided. In addition, the government's other most important economic objective is to strengthen the electromobility sector, including with a focus on public transport.

was said in the presentation. The Minister of Technology and Industry said that subsidies for city electric buses will also be extended to cities with a population of less than 25,000.

The issue of energy storage is also crucial because the market and user demand is huge, and the Hungarian solar capacity is expanding at a much faster rate than expected, while the flexibility and transferability of the system has not improved in the last decade. 

In recent years, both in the case of industrial-scale power plants and in the residential segment, the output of power plants has continuously increased.


Almost half of this would be allocated to network development, another HUF 720 billion to increase energy efficiency and the same amount to hydrogen infrastructure investments. HUF 700-700 billion would be spent on the construction of new production capacities and the construction of alternative sources that trigger Russian energy imports, while HUF 500 billion would be spent on the use of renewable and other sources.

The future is in energy storage

In the following years, the construction of an energy storage capacity of the order of 100 megawatts would be necessary in Hungary in order for new solar investments to continue at the pace of the past period. The increasingly burdensome network fluctuations caused by solar power plants can be balanced with energy storage, and in the long term, this is one of the keys to the transition of households and organizations to renewables. The technology is available, but additional regulatory changes and incentives would be necessary in order for energy storage to enter the system-level services market and operate profitably, similar to international models. "We already have the technology, legal, market and energy trade regulations will follow sooner or later. 

It is not necessary to change the solar goals, but to create a system and regulatory environment that enables the integration of existing technologies," said Radoslaw Kedzia, Vice President of the Northern, Eastern and Central European region of Huawei Technologies.

Péter Kaderják, executive director of the Hungarian Battery Association, also emphasized the importance of network energy storage in his presentation: "Energy storage is a key technology of the green transition, as part of which battery energy storage and related industry investments have started to grow significantly in our country in the recent period. Renewable energy systems - be it industrial, household or transport use - are extremely dynamically developing segments, and in order to ensure capacity and develop flexibility, a significant amount of tender support is expected in the future specifically for the establishment of energy storage facilities."


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