Budapest, 12 June 2023 – Wolf Theiss acted as lead legal counsel for a group of investors active in the Hungarian renewables sector represented by PolSolar Kft. The mandate encompassed the engineering, procurement, and construction (EPC) of the largest solar power plant in Hungary and the entire CEE region with other corresponding matters. The solar power plant boasts an installed rated capacity of 250 MW and was officially handed over on 6 June in Mezőcsát, Hungary, marking a significant milestone in the country's transition towards clean energy.
The Wolf Theiss team was led by László Kenyeres, Head of the Projects & Energy team and Ádám Lukonits, Associate at the Budapest office. Wolf Theiss played a pivotal role in the realization of this ambitious project, providing comprehensive legal assistance throughout the entire one and a half year-long process. The team facilitated the tender process for the selection of the EPC contractors, drafted and negotiated the EPC contracts, established the necessary collateral structure, and coordinated the client's product procurement, including the largest ever single panel purchase in Hungary.
Furthermore, the team adeptly handled transportation issues, resolved contractor disputes with EPC contractors, settled insurance claims, and conducted the tender, negotiation and signing of the operation and maintenance (O&M) contracts.
This new solar power plant has already undergone rigorous production tests and has been seamlessly integrated into the Hungarian electricity grid. Consequently, solar power generation and electricity export figures have already experienced a notable boost. The Mezőcsát solar power plant accounts for 8 percent of the total electricity generated by solar power plants in Hungary.
The new plant spans a vast area of 440 hectares, featuring an astounding 466,000 solar panels, 80 medium-voltage transformer stations and an intricate network of 1,000 kilometers of cables. The power plant can produce 372 gigawatt hours (GWh) of electricity annually, which amounts to enough clean energy to meet the energy needs of the nearby city of Debrecen, home to a population of 200,000, for half a year.
Hungarian Energy Minister Csaba Lantos, Parliamentary State Secretary of the Ministry of Finance and Member of Parliament for the region, András Tállai, as well as the CEO of the Hungarian electricity system operator (MAVIR), András Biczók, attended the handover event. Their presence underscores the significance of this historic achievement in Hungary's renewable energy landscape.
The investment of over HUF 90 billion (ca. EUR 245 million) highlights the commitment of both private and public entities to the expansion of renewable energy sources. The endeavour to develop this ground-breaking project was a collaborative effort between six companies with financial backing from a combination of investor contributions and a green bond issuance, reflecting the growing trend of sustainable investment practices. The expected lifespan of the investment is projected to be a minimum of 15 years, ensuring a long-lasting positive impact on Hungary's renewable energy sector.
Wolf Theiss has also been entrusted by the same group of investors to oversee the development of additional solar power plants across other regions in Hungary, with the aim of securing a further 150 MW in generation capacity. These additional projects are currently in the commissioning phase, and further cement Wolf Theiss' leading position as the "go to" firm for energy projects in Hungary and the CEE/SEE region.
About Wolf Theiss
Founded in 1957, Wolf Theiss is one of the leading law firms in Central, Eastern and South-Eastern Europe (CEE/SEE). We have built our reputation on unrivalled local knowledge which is supported by strong international capabilities. With 360 lawyers in 13 countries, over 80% of the firm's work involves cross-border representation of international clients.
Albania, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine, Wolf Theiss represents local and international industrial, trade and service companies, as well as banks and insurance companies. Combining law and business, Wolf Theiss develops comprehensive and constructive solutions on the basis of legal, fiscal and business know-how.
For more information, please visit wolftheiss.com.