Hungary’s wind energy market is coming back to life: in August, the government will launch a tender for nearly one billion euros in new wind power capacity. However, despite the favourable outlook, project developers must also reckon with applicable zoning, environmental, grid connection and other regulatory requirements.
Key takeaways
- The Hungarian wind energy market stands at a historic turning point. István Kapitány, Minister of Economic Affairs and Energy, announced on 24 June 2026 that the government intends to increase domestic wind power capacity more than tenfold, to approximately 4 GW by 2030, with European Union support.
- The first tender will be launched as early as 31 August 2026 for the connection of at least 700 MW of new capacity, representing an investment of nearly one billion euros.
- In addition, the government is allocating EUR 1.5 billion for electricity grid development to integrate the new renewable capacities.
- All of this signals that, after nearly a decade of a de facto moratorium, wind power plants may return to the Hungarian energy mix. Nevertheless, several previously known legal constraints remain in place and pose challenges for future investors.
A historic opportunity: tenfold capacity expansion and active market participation
The government’s ambitious target is to launch tenders for a total of 4 GW of new wind power capacity by 2030, more than ten times the current capacity. As the first step of the programme, a tender for the construction of at least 700 MW of wind power capacity will be announced on 31 August 2026.
The minister emphasised that the draft tender will be submitted for public consultation by mid-July 2026 and promised a fully competitive, discrimination-free and corruption-free tendering process.
The developments are financed from the European Union’s Recovery and Resilience Facility (RRF). Based on a government resolution published in the Official Gazette (Magyar Közlöny) on 24 June 2026, a tender with a budget of HUF 479.7 billion, approximately EUR 1.5 billion, will be launched for the development of a flexible and secure electricity grid. The aim is to integrate weather-dependent renewable energy sources, including wind energy, into the system.
In addition, a smart meter installation tender will be launched with a budget of HUF 54 billion, approximately EUR 150 million. Together, these developments lay the groundwork for the grid integration of more than 4,800 MW of clean energy generation.
It is important to note that the deadline for utilising RRF funds is tight. The original deadline expires in August 2026, meaning that only a very narrow window is expected to be available for submitting tender applications.
Partly in connection with the above, the Hungarian Energy and Public Utility Regulatory Authority (HEPURA) launched a national market survey in June 2026 regarding planned wind energy investments. The online questionnaire, with a deadline of 8 July 2026, aims to provide the authority with a comprehensive picture of market plans for establishing new wind power capacities and expanding existing projects.
The HEPURA survey covers the location of investments, planned feed-in capacity, the level of project preparedness and expected implementation dates.
The survey is an important preparatory step ahead of future capacity allocation procedures, allowing investor needs and electricity grid conditions to be taken into account jointly. HEPURA has also drawn investors’ attention to a list published by MAVIR showing the substations most suitable for wind power connections and their available capacity.
Favourable outlook, existing constraints: investors’ legal room for manoeuvre
Despite the favourable political intent and substantial financing background, investors must reckon with a number of legal constraints that remain in force:
- Under the National Spatial Planning Act, wind power plants may not be constructed in national ecological network areas, high-quality agricultural land zones, zones of significant landscape protection, or world heritage and world heritage candidate sites.
- Wind power plants may only be sited in non-buildable areas, at least 700 metres from the boundary of any buildable area. The land must qualify as agricultural land or as a special area designated for renewable energy utilisation.
- Wind power plants between 5 and 50 MW (AC) qualify as elements of “regional importance” that must be integrated into the county spatial plan, which may require amendments to county-level regulations. Power plants exceeding 50 MW qualify as objects of “national importance” and require amendments to national-level legislation.
- Wind power plants must be situated at least 40 km from Hungarian Defence Forces radar installations and 15 km from military airports.
- Wind power projects may be subject to environmental impact assessment (EIA) obligations. For wind power plants or wind farms exceeding 600 kW, a preliminary examination is required. In protected natural areas, Natura 2000 areas or cave protection areas, a preliminary examination is required even between 200 and 500 kW, while above 500 kW a mandatory EIA procedure applies. The construction of overhead lines above 220 kV and longer than 15 km is subject to mandatory EIA.
- Grid capacity allocation is currently in a transitional phase. No new weather-dependent generation capacity has been allocated since 2022. EM Decree No. 11/2025 (IV. 10.), which entered into force in April 2025, introduced a new tender-based capacity allocation system, the detailed implementing rules of which have not yet been published. The essence of the new system is a centrally coordinated, uniform tendering procedure across all system operator areas, administered by HEPURA. Until the system becomes operational, no new grid connection capacity is available for utility-scale renewable projects.
- Weather-dependent power plants must have aFRR, or automatic frequency restoration reserve, capability. Power plants above 50 kW must also integrate a battery or non-weather-dependent generator with a nominal capacity of at least 30% of the power plant’s nominal capacity.
- Since wind power plants are typically constructed on agricultural land, Hungary’s agricultural land regime poses specific constraints. Domestic and foreign companies may not acquire ownership of agricultural land. A prerequisite for investment is the reclassification of the land, the so-called “reclassification permit”, whereby the land must be withdrawn from the arable land category.
Reclassification is a complex and time-consuming procedure involving the payment of a land protection fee, possible provision of replacement land, obtaining the relevant official permits and registering the reclassification in the land registry.
It should be noted, however, that a so-called “simplified zone” may be designated for the siting of wind power plants if an operating wind power plant or wind farm holding a valid combined small power plant permit exists in the relevant district. One of the most important advantages of investments carried out in a simplified zone is the shortened administrative deadline in environmental and building permit procedures. Furthermore, wind power investments in such zones are exempt from the obligation to provide replacement land where the project affects land classified as an agricultural or forestry zone.
Open questions and outlook
The restart of the wind energy sector in Hungary is clearly a favourable development, offering significant business opportunities for both domestic and international investors. Nevertheless, a number of key questions remain open:
- What will be the precise regulatory framework and evaluation criteria for wind power tenders?
- How will specific permitting procedures and deadlines take shape under the new capacity allocation system?
- On what timeline and under what conditions will grid connection take place for new projects?
- To what extent will spatial planning and other regulations be amended to facilitate wind power development?
- What support intensity and structure will be available for wind power investments?
- How will the regulation and approval process for foreign direct investment (FDI) develop?
Wolf Theiss closely monitors wind energy market developments and has extensive experience in regulatory, permitting, real estate and financing matters relating to renewable energy projects. Our expert team, comprising leading lawyers in energy law, environmental law, real estate law, project finance and M&A, is at our clients’ disposal to jointly assess emerging opportunities and legal challenges and to support the successful realisation of investments.
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