Hungary

Hungary

Adopts State aid for investments in strategic sectors

28 Jul 2023

On 21 June and 28 July 2023, the European Commission approved two State aid schemes from Hungary totalling €3.46 billion (HUF 1.316 trillion) to accelerate investments in strategic sectors and support the development of electricity storage facilities. These initiatives aim to facilitate the transition to a net-zero economy.

The first scheme, worth €1.1 billion (HUF 436 billion), funds at least 800 MW/1600 MWh of new electricity storage capacity through competitive bidding, with grants awarded by the end of 2024. The assistance includes an investment grant during the construction phase and a two-way contract for difference (CfD) for the first 10 years of operation.

The second scheme, totalling €2.36 billion (HUF 880 billion), offers grants and tax incentives for producing critical green technologies, including batteries, solar panels, wind turbines, heat pumps, electrolysers, carbon capture technology, and essential raw materials.

Nature of measure:
  • Incentives
Type:
  • Promotion and facilitation (Investment incentives)
Industry:
  • Primary (Mining and quarrying)
  • Services (Electricity, gas, steam and air conditioning supply)
Inward FDI:
No
Outward FDI:
No
Sources: