Hungary

Overall assessment

From 2021 to 2027, Hungary’s allocations under the EU’s Cohesion Policy are expected to amount to EUR 22,791 billion. Out of 8 national operational programmes, 3 of them are targeting climate action (KEHOP Plusz, TOP Plusz and DIMOP Plusz). Currently 55% of the OP funds are still frozen by the Commission due to concerns about the rule of law and fundamental rights.

Detailed assessment

General: allocation, definition, transposition

Specific allocation for energy communities

Energy communities have been included in three OPs (KEHOP Plusz, TOP Plusz and DIMOP Plusz) TJTPs are part of the KEHOP PLusz, each of the three TJTP plans (Baranya County, BAZ county and Heves county) mentions the same 2 programs with energy communities among beneficiaries. The exact allocation for these 2 measures are not yet disclosed.

Definition of energy communities in line with EU legislation

The definition of energy communities is not optimal, leaving space for a wrong attribution of funds. The definitions of RECs and CECs transposed are not matching the goals of the European definitions.

The programmes also created more confusion by dividing municipal and non-municipal involvement in different OPs. Energy communities in the district heating sector are also mentioned in the KEHOP Plusz, but they are only defined as per the Electricity Market Directive.

Proportionality of share of total fund allocated to energy communities

No numerically specific allocation of funds is yet foreseen.

Availability of tailored financing tools

Only grants will be available as a form of financing for energy communities. Different financing tools available that fit different situations (e.g., loans, guarantees, blended finance) are not foreseen.

Link to a wider scope of activities and objectives

Link between energy communities, building renovation and energy efficiency

The link is not directly mentioned but partially/indirectly can be deducted: Energy communities are supported to promote self-sufficiency. For example the Measure "Energy efficiency 'Promoting energy efficiency and reducing greenhouse gas emissions' has a main focus on RES-based production and linking decentralized producers and consumers by developing the IT background for this. Still, the full potential of a citizen-led (community) renovation is not yet recognised.

Recognition of energy communities under multiple objectives

Energy communities are explicitly linked with the production of renewable energy to achieve self-sufficiency. There is also a link between energy communities and educational activities regarding the efficient use of energy.

Transparency and inclusiveness

Holistic strategy to provide financing across different levels of project development

There is no holistic strategy in place to provide financing across different levels of project development (i.e., facilitating grid acess, one stop shops, awareness raising & capacity building, pilot financing, administrative, business model and legal advice)

Transparency of the design and communication of the schemes and measures

Despite organising a public consultation on the Operational Programmes, not many of the suggestions by civil society were taken into account. However, it is also possible to participate in the implementation process and provide feedback through the Monitoring Committees.

Selection criteria and the prioritisation of various social components

This information is not yet available.

Decentralised tender process

The Operational Programmes are managed in a centralised manner.

Existence of procedures to facilitate the participation of energy communities in open calls

There are no procedures yet to facilitate the participation of energy communities in open calls.

Stability and predictability of the programme through time

The Operational Programmes are currently assessed as not predictable and stable.