Hungary

Hungary

Hungary scraps wind tender

HUNGARY: The Hungarian Energy Office has cancelled a tender for the construction of 410 MW in wind farms in the country, casting doubt over the country's growth plans for wind energy.

Hungary's commitment to wind power in doubt
Hungary's commitment to wind power in doubt
The tender, which had drawn preliminary bids to construct 1.1 GW in wind farms, had represented the first opening for new projects since the government capped capacity at 330 MW in a 2006 tender.  

Hungary’s installed wind capacity currently stands at 201 MW but should move closer to the 330 MW ceiling this year.  

Despite its cancellation of the tender, the Hungarian Energy Office said that wind energy generation remains a priority and reserved the right to re-open the tender process under new conditions. 

The tender had been launched in 2009 by the previous Hungarian government, and a new government formed at end May has suggested it wants to re-examine the criteria for the tender. 

Some observers believe the government is hoping to attract a higher number of bidders to increase competition and bring down the incentive price it is required to pay out for projects awarded licenses.

That strategy could prove risky, as the decision to shelve the process could endanger Hungary’s credibility among international investors.

The official objectives of Hungary’s new government for wind energy have not yet been revealed.  The previous government forecasted that 920 MW of wind farms could be operating by 2020, producing 1.7 TWh of electricity each year.

"Now nobody can know how much wind capacity will be installed by 2020 or in the future," said Andrea Kircsi, secretary of the Hungarian Wind Energy Association (HWEA).  

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