Hungary to launch district heating tender in May

Gabor Czepek, Hungary's Deputy Minister of Energy, has unveiled plans for a HUF96 billion (€241.4m $261.4m) district heating auction.

"The government is launching the largest district heating development programme of the past 35 years within the framework of the Jedlik Anyos Energy Program," commented Czepek in a video message announcing the project.

The tender will serve two purposes: the development of renewable district heat production and improving the efficiency of existing assets.

Specifically, the scheme, known as the Modernisation and Development of district heating system infrastructure, will support the replacement of natural gas with industrial heat pumps, geothermal heat or biomass for district heat networks.

It will also reduce network heat and water loss by renovating and insulating existing district heating pipelines.

The HUF96 billion budget will be split as follows:

• HUF51 billion for the replacement of natural gas
  • Applicants can apply for a minimum of HUF200 million or a maximum of HUF3.5 billion
    
    
• HUF45 billion to renovate and insulate existing pipelines
  • HUF25 billion can be spent on increasing energy efficiency and HUF20 billion on renewable energy-based heat sources or waste heat use in connection to existing district heating pipelines 
  • Applicants can apply for a minimum of HUF20 million or a maximum of HUF1.5 billion

At present, Hungary has more than 210 district heating systems delivering heat to nearly 700,000 homes.

Only district heating companies located in Hungary or those registered in the European Economic Area and a branch in Hungary can apply.

NFFKU Zrt, Hungary's International Fund Development and Coordination Agency, is currently running a public consultation on the tender, with companies invited to comment on the proposals by 31 March 2025.

The window for official submissions is expected to open in mid-April 2025, with the planned deadline for submissions being in mid-May 2025.

The scheme forms part of the Jedlik Ányos Energy Program, a HUF440 billion (€1.1 billion) programme that will support the energy development of businesses in Hungary.