A fresh wind for Hungarian renewables: Hungary relaunches its wind energy market

Comprehensive regulatory reform and details of the long-awaited 700 MW wind capacity tender, the first in nearly two decades.

The Hungarian wind energy market reached a significant turning point in August 2026. In parallel with the comprehensive legislative reform published in the Hungarian Official Gazette, on, the Hungarian Energy and Public Utility Regulatory Authority (“HEPURA”) announced, 30 August 2026, Hungary’s long-awaited competitive wind capacity tender, nearly two decades after the previous wind tender. Taken together, the reform and the tender establish a new regulatory and market framework for wind energy developments in Hungary. The reform is intended to accelerate project development and make the investment environment more predictable, while the tender will award at least 700 MW of new wind capacity and represents the first step in a programme aimed at developing a total of 4,000 MW of new wind capacity by the end of 2030.

Key takeaways:

• The tender now announced covers at least 700 MW of new wind capacity.
• The number of designated facilitation zones suitable for wind energy development will increase from 8 to 25 districts.
• An integrated, one-stop-shop environmental and power plant building permitting procedure will be introduced.
• Permitting deadlines will be significantly shortened in designated facilitation zones.
• Only dedicated project companies may participate in the tender.
• Project companies will be required to offer renewable energy communities the opportunity to acquire an ownership interest of up to 25%.
• The evaluation process will give particular weight to contributions benefiting of local communities, energy storage solutions and the use of equipment manufactured in the EU.
• Applications may be submitted between 4 September and 30 October 2026.

1. Key legislative changes to the regulatory framework for wind energy developments

The legislative package published in the Hungarian Official Gazette dated 28 August 2026, in particular, Government Decree No. 131/2026 (VIII. 28.) and GEM Decree No. 4/2026 (VIII. 28.), comprehensively amends the regulatory framework for wind energy developments in Hungary. The amendments are intended to fulfil the energy-related milestones undertaken under the European Union’s Recovery and Resilience Plan, while also introducing measures designed to accelerate the preparation and permitting of projects and make the investment environment more predictable.

Among the most significant changes is a substantial expansion of the designated facilitation zones. instead of the previous eight districts, as many as 25 districts may now be designated as facilitation zones for wind energy developments. Under the legislation, a facilitation zone may be designated by the minister responsible for energy policy in a geographical area with particularly favourable conditions for renewable energy generation, where annual wind energy density measured at a height of 150 metres reaches at least 400 W/m². Such designation may not, however, extend to Natura 2000 sites, protected or specially protected natural areas, zones within the national ecological network, World Heritage sites or other areas of particular importance from a nature conservation, landscape protection or national defence perspective.

The designation of facilitated zones is also highly significant from a permitting perspective. For projects implemented in such areas, the statutory deadline for the environmental permitting procedure is reduced to 30 calendar days, while the deadline for the building permit procedure is reduced to 20 calendar days. Compared with the timeframes previously experienced in practice, this may result in substantial time savings and contribute significantly to faster project development. The legislative package also introduces an integrated environmental and construction permitting procedure for power plants, enabling developers to obtain the necessary environmental and building permits through a single procedure. This new one-stop-shop permitting model is expected to reduce administrative burdens and further shorten project development timelines.

One of the most significant long-term elements of the regulatory reform is the requirement for HEPURA to launch at least one wind capacity tender each year. This may enhance regulatory predictability and create a more transparent and stable investment environment for market participants. This is particularly significant in light of the ambitious capacity expansion targets established by the legislator: by the end of 2030, at least 4,000 MW of new wind capacity may be allocated through competitive tenders in Hungary. As a result, regularly scheduled capacity tenders, such as the tender now announced, are expected to become a key driver of wind energy development in Hungary.

2. Key terms of the current capacity tender

The purpose of the newly announced wind capacity tender extends beyond the construction of new wind generation capacity. It is also intended to support projects that contribute to the long-term flexibility of the electricity system, promote the involvement of local communities and expand domestic electricity generation capacity. The principal terms of the tender have been designed accordingly.

2.1 Eligibility requirements

Contrary to prior expectations, participation in the capacity tender is restricted. Only a special purpose vehicle (“SPV”) established for the implementation of the project may participate in the tender. In addition, applicant SPVs must demonstrate that they employ at least one full-time employee with a minimum of five years’ professional experience in the energy sector.

From a technical perspective, applications must relate to at least 14 MVA of feed-in capacity and 14 MW of installed wind capacity and each application may be submitted in respect of only one grid connection point. To prevent market concentration, the tender notice limits the amount of capacity that may be obtained by a single corporate group. Applicants belonging to the same corporate group may obtain no more than 100 MVA at any one grid connection point and no more than 200 MVA in total nationwide.

Compared with previous capacity tender regimes, the regulatory framework governing the 2026 wind capacity tender significantly expands the grounds for exclusion and, in several respects, extends the compliance assessment beyond the applicant itself to encompass its parent company and, in certain cases, the wider corporate group. Newly introduced grounds for exclusion include, among others, cases where HEPURA has called a performance security provided by a member of the applicant’s corporate group within the preceding three years or where such an entity has failed to provide a required supplementary security. Exclusion may also arise where the beneficial ownership structure of the project company cannot be credibly verified or where the ultimate beneficial owner is subject to an outstanding repayment obligation relating to an EU-funded grant or tender. Furthermore, applicants may be excluded where a grid connection agreement of a group company has been terminated within the preceding three years as a result of the system user’s breach or default or where a member of the applicant’s management has been found to have committed a criminal offence in connection with a public procurement procedure during the same period.

Applications may be submitted electronically between 4 September 2026 and 30 October 2026 via the SZÜF platform. To support applicants’ preparations, HEPURA will hold an online information session on 10 September 2026 on the rules of the tender procedure.

2.2 Financial security and project obligations

Unlike previous practice, participation in the current capacity tender is subject to a pre-determined participation fee of HUF 3 million per application. At the same time, the requirement to pay a documentation fee has been abolished. Applicants must also provide a bid bond, which is set as a specified percentage of the project’s benchmark investment value and may be provided in the form of a cash deposit or a bank guarantee. As expected, successful applicants will also be required to provide a performance guarantee.

One of the most noteworthy features of the tender system – and one that is novel in Hungary’s renewable energy market – is the mechanism encouraging local community participation. While the draft previously submitted for public consultation treated the opportunity for community ownership as a voluntary commitment forming part of the evaluation criteria, the final tender notice now includes it as a mandatory requirement. Accordingly, applicants must undertake to grant the renewable energy communities designated by the Government a call option to acquire up to 25% equity interest in the company. This provision may materially affect the project’s corporate, financing and governance structures. In light of the potential entry of a renewable energy community as a minority shareholder, it may therefore be appropriate, already during project preparation, to structure the constitutional documents, shareholders’ agreements and financing and security arrangements so as to appropriately address the legal and commercial considerations arising from a future change in the ownership structure.

Another requirement is that the applicant must have aFRR balancing capability and demonstrate that the development site is available. For this purpose, the applicant must submit evidence of an appropriate legal title (such as ownership, a leasehold right or a preliminary agreement) to a property of at least one hectare located no more than 19 kilometres from the grid connection point covered by the application. Winning projects must obtain a final and binding building permit no later than 1 January 2030.

2.3 Evaluation criteria

If multiple applications are submitted for the same grid connection point, HEPURA will rank them based on pre-defined comparative criteria. The local financial contributions committed by the projects carry the greatest weight. One-off and annual community contributions together account for 35% of the overall evaluation system, demonstrating that the regulator places particular emphasis on local social acceptance and the delivery of community benefits.

Further advantages in the ranking may be obtained, among other things, through the installation of energy storage capacity, a commitment to installed capacity exceeding the feed-in capacity, acceptance of a partial award, the provision of a higher performance guarantee, use of a brownfield development site and use of a shared grid connection point.

The project’s contribution to European industrial policy objectives also carries significant weight. A commitment to procure equipment manufactured in the EU carries an additional weighting of 15% in the evaluation.

These features of the tender system clearly demonstrate that the legislator seeks simultaneously to promote rapid project development, investments that enhance the flexibility of the electricity system and the active involvement of local communities. Given the substantial amount of capacity at stake, the tender may become a defining milestone in the relaunch of Hungary’s wind energy sector and is expected to attract significant interest from both domestic and international developers.

3. Practical considerations and next steps for applicants

Given the tight deadlines and complex eligibility requirements of the tender procedure, prospective developers would be well advised to begin project preparations as soon as possible. The following areas warrant particular attention before an application is submitted.

Project structure and organisational readiness. Since only SPVs established for this purpose may participate in the tender, investors should first assess whether they have an appropriate corporate structure in place. It is also important to ensure that the SPV or corporate group satisfies the professional suitability requirements set out in the tender notice, including the requirement to employ a person with the requisite professional experience.

Mapping project sites and grid connection opportunities. For developers, the early identification of potential project locations and available grid connection points is essential. Industry feedback regarding the upcoming tender indicates that the designation of grid connection points is driven primarily by the availability of spare grid capacity and may not necessarily align with the most favourable geographical locations for wind farm development. Developers should therefore anticipate that, around certain connection points, the 700-metre setback requirement, dense development patterns or nature conservation restrictions may substantially reduce the area that can be effectively utilised for a project. In addition, the tender documentation requires applicants to demonstrate the availability of the necessary land rights or other adequate legal title, making site control and real estate due diligence particularly important during the early stages of project development. Developers should also take into account that several of the smaller connection points are located at the distribution network level. Given current turbine sizes, these connection points may accommodate only three to four turbines, which could limit the economic viability and scalability of certain wind farm projects.

Preparing financing and security requirements. The tender conditions may impose a substantial financial burden on developers. In addition to the one-off contributions to local communities (which may reach up to EUR 50,000/MW for the highest score) and annual contributions of up to EUR 3/MWh, investors must also factor in local business tax liabilities, sector-specific surtaxes and the statutory 25% purchase right to be granted to renewable energy communities. According to market estimates, for a 50 MW project these obligations could translate into a one-off contribution of up to EUR 2.5 million and recurring annual costs amounting to several hundred thousand euros. Furthermore, compliance with bid bond and performance security requirements may require considerable financial resources and administrative preparation. Developers are therefore advised to undertake detailed financial modelling at an early stage of project development, taking into account all public charges, as well as the additional capital requirements arising from the community ownership framework.

Taking community participation requirements into account. One of the novel features of the tender framework is the requirement for successful projects to grant designated renewable energy communities a purchase right over an equity stake of up to a 25% in the SPV. However, renewable energy communities in Hungary are currently, for the most part, operating as early-stage or pilot initiatives. As a result, it remains uncertain whether the designated communities will have sufficient financial resources to exercise the purchase right and meet any subsequent funding obligations associated with their participation. Accordingly, when designing project and financing structures, developers should consider not only the legal framework governing community ownership participation but also its practical feasibility and the potential financing risks involved. These issues should be carefully assessed during the project planning stage to ensure that any future community investment can be accommodated without adversely affecting the project’s bankability or implementation timetable.

Project scheduling and permitting. Successful projects must obtain a final and binding building permit no later than 1 January 2030. Developers should therefore prepare a project timetable that allows sufficient time for the necessary permitting, technical and financing processes.

Managing performance risks. The tender system also contains stringent performance requirements. Particular attention should be paid to the rule under which a deviation exceeding a specified threshold between the capacity applied for and the capacity ultimately installed may result in the partial forfeiture of the performance guarantee. Accordingly, realistic capacity commitments and a thorough assessment of implementation risks are of central importance to technical and commercial planning.

The Wolf Theiss office in Budapest continuously monitors regulatory developments in the Hungarian and regional renewable energy markets and has extensive experience in energy law, permitting, environmental, real estate, financing and transactional matters relating to the development of wind and other renewable energy projects. Throughout the project life cycle, our team supports clients from preliminary regulatory analysis through the permitting and financing processes to project implementation. If you have any questions regarding the tender terms or the evolving regulatory framework for wind energy developments, our experts would be pleased to assist you.