Published: November 24 2023
Hungary's revised recovery plan for its energy supply has been approved by the European Commission. This plan includes a significant investment of EUR 4.6 billion in the REPowerEU chapter, aimed at creating a more affordable, secure, and sustainable energy system in the country. The plan is worth a total of EUR 10.4 billion, with grants making up EUR 6.5 billion and loans totaling EUR 3.9 billion. This article explores the key points of Hungary's revised energy plan and the implications of this approval.
Accelerating the Deployment of Renewable Energy
A major focus of the REPowerEU chapter is to strengthen Hungary's electricity sector by speeding up the adoption and utilization of renewable energy sources. The plan aims to improve energy efficiency and promote the use of renewable energy to meet future energy challenges. By doing so, Hungary can reduce its dependence on Russian fossil fuels and create a more sustainable and flexible electricity market.
Contribution to Digital Transition
The REPowerEU chapter also includes measures to support the digital transition in Hungary's energy sector. These measures encompass assistance for energy system operators in implementing digital developments, the installation of additional smart meters, the adoption of digital solutions to enhance the security and efficiency of the electricity system, and the development of digital learning materials to promote green skills.
Social Resilience and Accessibility
The revised plan recognizes the importance of the social dimension in Hungary's energy sector. In addition to the original reforms and investments, the plan includes additional measures aimed at improving the resilience of society. This includes support for vulnerable households to undergo energy renovations and the implementation of training programs to equip the workforce with green skills. The plan also addresses the need for accessible early childhood education services by creating more crèche places.
Approval Process and Disbursements
The European Commission has approved Hungary's revised recovery plan, but it must now be approved by the Council within four weeks. Following approval, the Commission will authorize regular disbursements based on the satisfactory completion of reforms and the achievement of the 27 "super milestones" that ensure the protection of the EU's financial interests and strengthen judicial independence.
Hungary's revised energy plan has been given the green light by the European Commission, securing a significant investment in the country's renewable energy development. With a focus on accelerating renewable energy deployment, contributing to the digital transition, and improving social resilience, this plan aims to create a more sustainable and secure energy supply in Hungary. The approval of this plan marks a significant milestone in Hungary's energy transformation journey.
Questions & Answers
What is the revised energy plan for Hungary? The revised energy plan for Hungary aims to provide a more affordable, secure, and sustainable energy supply. It includes measures to accelerate the deployment of renewable energy, improve energy efficiency, and create a flexible electricity market with a high share of renewables.
How much investment is secured through the REPowerEU chapter of Hungary's energy plan? A total of EUR 4.6 billion in investment is secured through the REPowerEU chapter of Hungary's energy plan.
What form does the investment take in Hungary's revised energy plan? The investment in Hungary's revised energy plan consists of EUR 6.5 billion in grants and EUR 3.9 billion in loans.
What are the "super milestones" mentioned in relation to Hungary's recovery plan? The "super milestones" refer to 27 specific criteria that Hungary needs to meet in order to receive disbursements from the Recovery and Resilience Facility. These criteria are aimed at protecting the EU's financial interests and strengthening judicial independence.
How will the revised energy plan help Hungary reduce its dependence on Russian fossil fuels? The measures in the REPowerEU chapter of Hungary's energy plan, such as accelerating the deployment of renewable energy and improving energy efficiency, are expected to help Hungary reduce its dependence on Russian fossil fuels.
What other areas does the REPowerEU chapter of Hungary's energy plan cover? In addition to strengthening the electricity sector, the REPowerEU chapter of Hungary's energy plan also includes measures to contribute to the digital transition. These measures support digital developments in the energy sector, improve the security and efficiency of the electricity system, and promote the development of green skills.
What is the social dimension of Hungary's revised energy plan? The social dimension of Hungary's revised energy plan includes additional measures aimed at improving the resilience of society. This includes support for vulnerable households for energy renovation and training programs to acquire green skills. The plan also aims to make early childhood education services more accessible.
What is the next step for Hungary's revised energy plan after the European Commission's approval? The Council has four weeks to approve the European Commission's assessment of Hungary's revised energy plan. Once approved, regular disbursements will be authorized based on the satisfactory completion of the reforms and milestones outlined in the plan.