Wind farms at the starting line: new tender procedure for grid capacity allocation

1. Subject and objective of the tender

The Hungarian Energy and Public Utility Regulatory Authority (“HEPURA”) has launched a tender procedure for the allocation of available free capacities on the medium- and high-voltage electricity network. The tender is exclusively intended to award grid connection rights for wind power plants, with the objective of increasing the share of renewable energy sources, maintaining security of supply and ensuring a transparent and non-discriminatory allocation of network capacities.

2. Eligible technologies and threshold requirements

The primary technology eligible under the tender is wind power generation, which may be applied for at all network connection points. Battery energy storage systems may be included as a secondary technology; however, no tertiary energy source may be designated in the tender application. To meet the minimum eligibility requirements, applicants must request at least 15 MVA of export capacity and propose a wind power plant with a minimum installed capacity of 15 MW.

3. Who may apply?

Applications may be submitted by business entities (as defined under the Hungarian Code of Civil Procedure). The language of the procedure is Hungarian and any documents in a foreign language must be accompanied by a certified Hungarian translation. Only one application per applicant (or corporate group) may be submitted for each network connection point.

If an applicant intends to connect multiple wind farm projects to the same grid connection point within the framework of a single tender, the requested capacity must be indicated on an aggregated basis. However, separate declarations must be submitted for each individual power plant. A corporate group may submit only one valid application in respect of the same connection point and the total capacity that may be awarded to the corporate group across different connection points may not exceed 100 MVA.

4. Key deadlines

• Application submission period: from 1 September 2026 (00:00) until 18 September 2026 (23:59).
• Online consultation/information session: 3 September 2026 at 09:00 (registration by email is required at least one business day in advance).
• Announcement of results: no later than 2 December 2026.

5. Method of submission

Applications may be submitted exclusively by electronic means through the Personalised Administration Interface (SZÜF) (https://magyarorszag.hu/) by completing the designated HEPURA application form. Participation in the tender procedure is subject to the payment of the tender fee, the amount of which is determined by a decree issued by HEPURA.

6. Content of the application

The mandatory content requirements for the application are set out in Section 8(1)-(2) of Ministry of Energy Decree No. 11/2025 (IV.10) on the tender procedure for the allocation of available free capacities on the medium- and high-voltage network (“EMR”) and must be provided using the form published by HEPURA and the opening document attached thereto.

The application must include, (i) the applicant’s identification details, (ii) information regarding the planned power plant site, including a precise indication of the relevant district, provided that, for the purposes of the tender procedure, it is sufficient to identify the plot numbers of properties comprising at least 1 hectare of land, which may not be located more than 22 km, measured in a straight line, from the grid connection point applied for; (iii) the designated network connection point applied for and (iv) the technical parameters of the project, in particular the requested export capacity, the relevant network voltage level, the proposed generation technology and the earliest possible connection date.

In addition, the applicant must provide a number of mandatory declarations, including declarations concerning the acceptance of a partial award and its extent, the amount of the performance security offered, commitments exceeding the minimum technical requirements necessary to maintain the power balance of the electricity system, the absence of exclusion grounds specified in the ministerial decree, the applicant’s beneficial ownership structure and confirmation that no other member of its corporate group has submitted an application for the same network connection point. Based on the template included in the tender documentation (Annex 9, currently under consultation), the applicant may declare that it voluntarily undertakes, in the event of being awarded the tender, to grant the entity designated in the EMR a call option to acquire an equity interest of up to 30% in the company implementing the successful project. Such undertaking constitutes one of the evaluation criteria of the tender.

The application must be accompanied by the original electronic versions or notarially certified copies, of the documents listed in the annex to the tender notice, as well as an opening document identifying the network connection point applied for and encrypted by means of a notarial certificate. Failure to submit the opening document – or the submission of an improperly encrypted document – will result in the application being deemed invalid.

Importantly, the following information contained in the opening document cannot be supplemented or amended: the designated network connection point, the requested export capacity, the voltage level, the technology, the earliest connection date and the bank confirmation evidencing payment of the participation fee. Any omission or error relating to these elements will likewise result in the application being declared invalid.

7. Financial guarantees

Bid security: The provision of bid security is a condition for participation in the tender procedure. The amount of the bid security is equal to 0.5% of the benchmark investment value, calculated as the product of the installed capacity or, in the case of electricity storage, the energy storage capacity and the applicable benchmark specific investment value. For these purposes, the benchmark specific investment value is HUF 406 million/MW for a wind power plant and HUF 200 million/MWh for battery energy storage.  The bid security may be provided either as a cash deposit or a bank guarantee. Any bank guarantee submitted as bid security must remain valid and effective for at least eight months from the date of submission.

Performance security: A successful applicant must provide performance security in an amount equal to at least 2.5% of the benchmark investment value, calculated on the basis of the installed capacity or, in the case of electricity storage, the energy storage capacity and the applicable benchmark specific investment value.   The successful applicant shall provide such performance security within 30 days of receipt of the decision granting the grid connection right.  Where the performance security is provided in the form of a bank guarantee, the bank guarantee must remain valid and effective for at least four months beyond the deadline for commencement of commercial operation. 

8. Evaluation criteria

Applications will be evaluated by an Evaluation Committee established by HEPURA in a two-stage process comprising: (i) validation criteria and (ii) comparative criteria.

8.1 Validation criteria (eligibility requirements)

An application will be deemed invalid if the applicant fails to satisfy any of the following minimum requirements:

• Compliance with the maximum allocable available capacity announced for the relevant grid connection point, voltage level and earliest connection date.
• An undertaking to apply for a capacity volume of at least 15 MW (15 MVA).
• Submission of a declaration confirming that the construction permit will be provided by 30 June 2029.
• An undertaking to implement the project with a mandatory transfer free of charge, where such requirement applies to the relevant connection point.

8.2 Comparative criteria and weighting

Based on the information provided by applicants, applications are scored on a scale from 0 to 100 points. The total weighting of the criteria equals 100%. Weighted scores are rounded to two decimal places.

8.3 Ranking

Applications are evaluated separately for each grid connection point. Applications achieving a higher aggregated score receive priority. In the event of a tie, ranking is determined on the basis of the three comparative criteria carrying the highest weighting. If a tie remains, the successful applicant is selected by a draw conducted before a notary public. A partial award may be granted where at least 15 MW of capacity remains available for allocation and the applicant has indicated its acceptance of a partial award.

8.4 Practical summary

The two most significant evaluation criteria are ÖSZ-2 and ÖSZ-3, each carrying a weight of 20%, while the financial commitment criterion (ÖSZ-4) also receives considerable weighting at 15%. Accordingly, the evaluation process goes beyond a formal compliance review. It is a weighted ranking system that takes into account commitments serving public and state interests, contributions to system operation and balancing, financial guarantees, land-use impacts, project maturity and the efficient utilisation of network capacity.

9. Grid connection rights and implementation obligations

Successful applicants must complete the project and commission the power plant within 24 months of the earliest connection date granted under the tender procedure. No exemption may be granted from this obligation. The grid connection right will be forfeited if the applicant fails to comply with the applicable deadlines, including, for example, the 15-day deadline for submitting the grid connection application.

10. Important remarks

• The draft tender documentation takes into account the proposed amendment of EM Decree No. 11/2025, which is currently subject to public consultation.
• No succession or change in the applicant’s legal identity is permitted between the submission of the application and the date on which the award decision becomes final.
• All costs associated with the preparation and submission of the application will be borne by the applicant, irrespective of the outcome of the procedure.
• The document constitutes a consultation draft and HEPURA reserves the right to amend its contents. Stakeholders may submit comments on the draft to kapacitaspalyazat@mekh.hu by 13 August 2026.
• This summary has been prepared on the basis of the consultation draft; the content of the final tender documentation may differ.
• This document is intended solely for information and summary purposes and is designed to provide a concise overview of the key features and requirements of the tender scheme. The draft tender documentation contains additional detailed information and requirements, which are available at: https://www.mekh.hu/kapacitas-palyazati-eljaras