Hungary is intensifying its commitment to renewable energy with a substantial funding initiative aimed at expanding geothermal power generation. Under the Jedlik Ányos Energy Programme, a 12-billion-forint budget has been allocated to support the development of grid-connected geothermal heat and electricity production systems using existing production and reinjection wells. The call is open for public consultation until 18 August through the programme’s official website.
According to the Ministry of Energy, this is the largest financial package yet to support geothermal energy, positioning it as a key driver of the green economy in line with government objectives. The ministry’s data shows that since 2017, geothermal electricity production in Hungary has been represented solely by a small power plant in Tura, with a capacity of 2.7 megawatts of electricity and 10 megawatts of heat. Geothermal energy has the advantage of providing continuous renewable generation regardless of weather conditions, though it carries high geological risks and requires significant capital investment. The new funding aims to improve financial returns and encourage Hungarian companies to invest in the sector.
The grant can be used for projects in any part of the country except Budapest, and in some cases, the full budget may be awarded to a single development. Winning projects must be completed within three years of starting.
This announcement follows another geothermal tender under the same programme, offering a total of 10 billion forints in non-refundable grants to cover the costs of first well drilling. That scheme, currently open for consultation until 15 August, could support ten to 20 rural projects with grants ranging from 40 million to 1 billion forints. If drilling proves successful, state aid will cover around 10 per cent of eligible costs, but in the event of failure, it could cover up to half. Projects must be physically completed within two years of the contract taking effect, and no later than the end of 2028.
A third planned component of the Jedlik Ányos Energy Programme will make the largest resources available for geothermal utilization, offering 19 billion forints in interest-free loans for geothermal heat production investments, including optional coverage of drilling costs.
Beyond geothermal energy, the Jedlik Ányos Programme also promotes the installation of corporate energy storage, the production of biogas and biomethane, and the modernization and greening of district heating systems. The Ministry of Energy noted that these initiatives will lower energy costs for Hungarian companies, thereby strengthening their competitiveness.
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