Energy price crisis in Hungary: Exiting renewable energy support schemes is an option for developers

The unforeseen energy market conditions this year – in particular the dramatic increase of the electricity prices – have posed a significant challenge for producers participating in the KÁT (feed-in-tariff) and METÁR (premium support) support schemes in Hungary.

Regarding the KÁT system, the subsidised price is currently lower than the market price. The METÁR producers are subject to an oversubsidy fee due to the calculation system. These circumstances essentially threaten the profitability of renewable energy projects, forcing producers to consider exiting the support schemes in due time.