Towards a climate neutral EU:
efficient allocation of EU funds

Flexible electricity grid to better integrate renewable energy sources (RRF)

Organisation: Clean Air Action Group, Hungary Website: Added: September 21, 2022
Project start date: February 20, 2022
Project end date: April 30, 2026


The project – planned to be financed by the Recovery and Resilience Facility – aims at developing the electricity distribution grid to increase its flexibility and facilitate the integration of photovoltaic systems. To connect the photovoltaic capacity planned for 2030 to the grid, a significant expansion of both transmission and distribution grids will be needed. This project aims to support these necessary upgrades. These developments will allow the electricity generated from weather-dependent renewable sources to potentially be connected to the electricity grid. Companies with an electricity distribution license can participate ; 1 to 7 projects can be supported, with 50% EU financing.

Financial data

Total: 171,874,000,000 HUF (~470 mil EUR) EU Contribution: 85 937 000 000 HUF (~235 mil EUR) Share of EU funding: 50%


Hungary should continue implementing measures to upgrade the capability of the Hungarian grid to integrate weather-dependent generators. However, the amount of public funds should be minimized, and an appropriate regulation forcing the electricity companies to contribute to these investments on a market basis should be implemented. Moreover, household electricity prices in Hungary are mostly still below market prices which is counter-productive economically, socially and environmentally. Therefore the introduction of market prices for households, accompanied by appropriate monetary compensation for vulnerable households, should be required prior to upgrading the grid. Besides the above development, Hungary should take all the necessary technical and institutional measures to enhance the capability of the Hungarian grid to integrate weather-dependent generators, for example, by providing energy management services, developing innovative pricing formulas, and introducing intelligent metering systems and smart grids, where appropriate. Also, measures improving electricity energy efficiency, including demand-side management measures should be implemented.

Information sources

Other info

European Climate Initiative (EUKI)
This project is part of the European Climate Initiative (EUKI). EUKI is a project financing instrument by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.