Promotion in Hungary

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Updated: 24.02.2017

Author: Flora Borek

Summary of support schemes

  • Tax regulation mechanism: there is a reimbursement of excise duty in place for E85, bioethanol and bio-diesel in case of engine development projects and vehicles used in the mining industry and in water man-agement (§ 55, 57/A Act No. CXXVII).
  • Biofuels quota: there is a target for biofuels, determined as the share of pure biofuels and biofuels added to conventional fuels in the total quantity of petrol placed in the market (§ 5 (1) Act No. CXVII of 2010). The quota has been redefined by a Government Decree for a three-year period (§ 5 (3) Act No. CXVII of 2010) in 2014 and will be 4.9% until 31 December 2018 (5 (4) Decree No. 343/2010). Only certified bio-fuels satisfying specific sustainability criteria can be taken into account for fulfilling the prescribed quota (§§ 2, 3 Decree No. 343/2010).
  • Subsidy Programmes: For example, within the TOP, subsidies are allocated for sustainable development of the transport sector under the priority section which targets projects for a low carbon economy, es-pecially with a focus on urban areas. In this respect, renewable energies can form a complementing el-ement within infrastructural projects (Government Decision 1005/2016 (I. 18.) (TOP)). 

Technologies

In the case of biofuel quota biofuels as well as hydrogen are eligible, whereas tax reimbursement applies to cer-tain biofuels only. Concerning subsidy programmes, the technology eligible is defined within the respective calls for tender.

Statutory provisions

  • Act No. CXVII of 2010 (2010. évi CXVII. törvény a megújuló energia közlekedési célú felhasználásának előmozdításáról és a közlekedésben felhasznált energia üvegházhatású gáz kibocsátásának csökken-téséről - Act No. CXVII of 2010 on the promotion of renewable energy in the transport sector and the reduction of greenhouse gases in the transport sector)
  • Decree No. 343/2010 (343/2010. (XII. 28.) Korm. Rendelet a fenntartható bioüzemanyag-termelés követelményeiről és igazolásáról - Government Decree No. 343/2010 on the conditions and certifica-tion of sustainable biofuel production)
  • Act No. CXXVII (2003. évi CXXVII. törvény a jövedéki adóról és a jövedéki termékek forgalmazásának különös szabályairól - Act No. CXXVII of 2003 on the excise duty and the rules of excise good sales)
  • Governmental Decision No. 1005/2016 (I.18.) (1005/2016 (I. 18.) Kormányzati Határozat a Terület és Településfejlesztési Operatív Program éves fejlesztési keretének megállapításáról - Decision No. 1005/2016 (I. 18.) on the annual Budget for the Territorial and Settlement Operational Programme 
  • Governmental Decision No. 1011/2016 (I.20.) (1011/2016 (I. 20.) Kormányzati Határozat a Versenyké-pes Közép-Magyarország Operatív Program éves fejlesztési keretének megállapításáról - Decision No. 1011/2016 (I. 20.) on the annual Budget for the Competitive Central Hungary Operational Programme

Hungary

Further information

  • Magyar Energetikai és Közműszabályozási Hivatal (MEKH) - Hungarian Energy and Public Utility Regulatory Authority (HEA)
  • +36 459 7777
  • MEKH website
  • mekh(at)mekh.hu