European Union energy grants worth 500 billion forints will open in June for electricity grid and smart meter developments, meaning that meaningful funding will finally be available for the modernisation of Hungary’s electricity system, Economic and Energy Minister István Kapitány said on Facebook on Wednesday.

He recalled that the Tisza government had achieved a historic success by reaching an agreement with the European Commission on securing a total of €16.4 billion in European Union funding. Of this amount, around €1.5 billion will be allocated to the development of the electricity system. According to him, progress must move at pace because the deadline for using recovery fund resources expires at the end of August.

The minister highlighted that electricity distribution operators and transmission system operators will be able to apply for the tenders launching in June. The deadline for completing the supported developments is uniformly set for the end of 2030.

The developments will lay the groundwork for connecting more than 4,800 megawatts of clean energy production to the system. Thanks to the funding, Hungary’s renewable energy capacity could expand by as much as 1,000 megawatts annually, he said.

The second tender will support the installation of smart meters that help households and businesses use electricity more efficiently.

István Kapitány stressed that a more modern and flexible grid increases the security of energy supply. By integrating more clean and affordable energy, Hungary can reduce energy prices for businesses and strengthen their competitiveness.

“We are working to ensure that the European Union funds owed to the Hungarian people are reflected as soon as possible in real developments, safer energy supply and a stronger Hungarian economy,” he wrote in his post.

Artificial intelligence was used for the translation of parts of the original Hungarian text.