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Amendment of the Scheduling of Power Plant Connections

Amendment of the Scheduling of Power Plant Connections

Hungary
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The specific connection procedure of power plants based on the requests of 2 May 2022 has been amended again, as a result of which deadlines set for authorized network operators are also amended. According to the government decree published on 29 March 2023, the new deadline to provide the technical and economic conditions for industrial-size power plants and electricity storage facilities as well as for all investments with a connection needed to a medium voltage network is 10 May 2023, while for the rest of the power plant investments it is 30 June 2023.

Before the amendment, the investors whose connection requests were submitted before 2 May 2022, were required to submit a statement about their intention to maintain their investment. Nearly 5000-megawatt size mainly weather-dependent solar panel investments were involved and almost all investors confirmed their investment will. The declaration procedure was necessary so that the authorized network operators could get a clear picture and are now able to plan the necessary developments according to the actual needs.


Apart from the introduction of the two-term scheduled issuance of the technical and economic conditions, the government decree also states the order how the free capacities becoming available as a result of the network developments are published for each category to the applicants by the authorized network operators.


Furthermore, the deadline for payment of the supplement financial security due in 2023 was also amended. Since applicants with connection claims submitted before 2 May 2022 would receive information on the possible connection date the soonest after 23 April 2023, the new deadline for payment of the relevant supplement financial security is 60 days following the determination of the connection date.

By Gabriella Galik, Partner, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

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