Renewable energy policy database and support: single

Subsidy programmes – EEEOP, EDIOP, CCHOP, TOP, RDOP

Updated: 07.01.2019

Author: John Szabo

Under the Environment and Energy Efficiency Operative Programme (EEEOP), calls for tenders are published on an annual basis. Eligible for subsidies are inter alia civil organisations, church institutions, companies and public institutions. However, most of the invitations to tender have not been opened yet. This Programme integrates 5 financing priorities (1 – highest priority and 5- lowest priority):

Adaptation to climate change
Development of municipal water and sanitation infrastructure
Waste management
Environmental measures and development
Enhancement of energy efficiency and the application of renewable energy sources

Following Decision 1084/2016, invitations for tenders will be announced between 2015-2020. Further, the decree allocates funds for every area, through which HUF 324.06 billion (approx. € 1.01 billion) have and will be provided for the “enhance-ment of energy efficiency and the application of renewable energy sources”. Renewable Energy Subsidy Programmes and already realised projects are listed in Annex 1 in Decision 1084/2016 (II.29.), for example:

EEEOP-5.1.1 Support for the Green Electricity Generation for plants with a capacity higher than 4 MW with an overall budget of HUF 6.4 billion (approx. € 20.69 million). The tender is open.
EEEOP-5.1.2 Support for the Green Electricity Generation for installations with a capacity lower than 0.5 MW with the overall budget of HUF 10.8 billion (approx. € 34.92 million). The tender is open.
EEEOP – 5.1.3. “Support for Green Electricity Generation”, HUF 6.77 billion (approx. € 21.81 million). The tender is open.

The Economic Development Investment Operational Programme (EDIOP) is intended to support economic development; nevertheless, calls for tenders have been published whereby subsidies should also be allocated for energetic refurbish-ments combined with the use of RES. Financing directions which include the support of RES are listed in Annex 1 to Decision 1006/2016 (I.18.), for example:

EDIOP – 4.1.1 -8.4.4-16 “Energetic refurbishment of buildings with the inclusion of RES backed by a combined credit product” HUF 6.95 billion (approx. € 190.85 million). The tender has been open since December 2016.
EDIOP – 4.1.1-18 “Energetic refurbishment of buildings with the inclusion of RES backed by a combined credit product” HUF 52.5 billion (approx. € 163.55 million). The tender has been open since February 2018.

The Rural Development Programme (RDP) can also provide subsidies through tenders to foster investments into heating and cooling with Annex 1 of Decree 1248/2016 “Improving the energy efficiency of agricultural and processing factories” mak-ing HUF 35 billion (€ 109.03 million) available for the cause. The tender was opened in February 2018.

Investment grants are further allocated within the Territorial and Settlement Development Operational Programme (TOP) and the Competitive Central Hungarian Operational Programme (CCHOP). Following Decree (1005/2016) the budget for investment projects targeting renewable energy generation directly amount to HUF 15.72 billion (€ 48.97 million), in addi-tion to comprehensive projects aiming create greener cities providing another HUF 19.77 billion (€61.59 million). According Decree (1011/2016), the budget for investment projects targeting renewable energy generation within the CCHOP amounts up to HUF 21.17 billion (approx. € 65.95 million). All tenders are open.

Eligible technologies

Amount

Addressees

Procedure

Process flow	The Ministry responsible opens the invitation for tender. Calls for tenders are to be opened according to the sched-ule of the respective Government Decision (e.g. Decision No. 1084/2016 on the budget for the Environmental and Energy Efficiency Operational Programme). However, the deadlines for tender initiation are often not met. Online registration for the application. Applicants must check whether they meet eligibility criteria in the frame-work of a certain call for tender. Information is provided by the government on the respective online platform, where the applicant can find tender documentation. The applicant may then initiate the online application process. The applica-tion can only be submitted if the mandatory documents are completed. Evaluation of the application. (standard procedure) After having submitted the online application, the respective au-thority begins the evaluation process provided that the can-didate is eligible for the allocable funds. The authority in-forms the applicant in case documents are missing and grants a certain timeframe to provide these. Subsequently, the authority evaluates the application according to content criteria. Unless otherwise stated, the applicant can be con-tacted both in written and oral form, if the authority finds (ex post) that the call for tender had contradictory ele-ments. Decision on the application (standard procedure). A deci-sion preparation committee is nominated by the application coordination authority in order to decide the success of a certain application. The coordination authority then deter-mines whether the recommendation of the decision prepa-ration committee will be accepted or rejected. If the appli-cation is considered successful, the applicant has to be in-formed up tp ten days after the decision is taken. Exceptions and further criteria The process flow described above is the standard application proce-dure. Some calls for tenders are initiated in the framework of a sim-plified process (no decision preparation committee involved) or an ‘exceptional’ invitation. Regarding the latter, the authority might decide that the project can be supported if the applicant does not fulfil certain criteria (ex ante) laid out in the tender documentation. In this case, those criteria are negotiated ex post between the au-thority and the applicant. Furthermore, additional criteria which have to be taken into account are laid out within the call for tender. More information (in Hungarian): https://www.palyazat.gov.hu/download.php?objectId=53779

Process flow

The Ministry responsible opens the invitation for tender. Calls for tenders are to be opened according to the sched-ule of the respective Government Decision (e.g. Decision No. 1084/2016 on the budget for the Environmental and Energy Efficiency Operational Programme). However, the deadlines for tender initiation are often not met.
Online registration for the application. Applicants must check whether they meet eligibility criteria in the frame-work of a certain call for tender. Information is provided by the government on the respective online platform, where the applicant can find tender documentation. The applicant may then initiate the online application process. The applica-tion can only be submitted if the mandatory documents are completed.
Evaluation of the application. (standard procedure) After having submitted the online application, the respective au-thority begins the evaluation process provided that the can-didate is eligible for the allocable funds. The authority in-forms the applicant in case documents are missing and grants a certain timeframe to provide these. Subsequently, the authority evaluates the application according to content criteria. Unless otherwise stated, the applicant can be con-tacted both in written and oral form, if the authority finds (ex post) that the call for tender had contradictory ele-ments.
Decision on the application (standard procedure). A deci-sion preparation committee is nominated by the application coordination authority in order to decide the success of a certain application. The coordination authority then deter-mines whether the recommendation of the decision prepa-ration committee will be accepted or rejected. If the appli-cation is considered successful, the applicant has to be in-formed up tp ten days after the decision is taken.

Exceptions and further criteria

The process flow described above is the standard application proce-dure. Some calls for tenders are initiated in the framework of a sim-plified process (no decision preparation committee involved) or an ‘exceptional’ invitation. Regarding the latter, the authority might decide that the project can be supported if the applicant does not fulfil certain criteria (ex ante) laid out in the tender documentation. In this case, those criteria are negotiated ex post between the au-thority and the applicant. Furthermore, additional criteria which have to be taken into account are laid out within the call for tender.

More information (in Hungarian):

https://www.palyazat.gov.hu/download.php?objectId=53779

Distribution of costs

State	The Hungarian state contributes to the financing of ten national op-erational programmes, which mainly allocate financial means from the European Structural and Investment funds (ESI) for different purposes, e.g. energy and environmental issues. The state contribut-ed € 4.63 billion for the period between 2014-2020.
European Union	The national operational programmes serve as an allocation mecha-nism of the European Structural and Investment Funds (ESI). Over the period of 2014-2020 a total budget of € 25 billion is granted to Hun-gary. Furthermore, the Hungarian state contributes to the financing of the national operational programmes (see above).

State

The Hungarian state contributes to the financing of ten national op-erational programmes, which mainly allocate financial means from the European Structural and Investment funds (ESI) for different purposes, e.g. energy and environmental issues. The state contribut-ed € 4.63 billion for the period between 2014-2020.

European Union

The national operational programmes serve as an allocation mecha-nism of the European Structural and Investment Funds (ESI). Over the period of 2014-2020 a total budget of € 25 billion is granted to Hun-gary. Furthermore, the Hungarian state contributes to the financing of the national operational programmes (see above).

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