Hungary’s goal, in line with the expectations of the EU Climate and Energy Policy Framework, is to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. The use of European Union funds significantly supports the achievement of this goal through the Territorial and Settlement Development Operational Programme Plus, which, together with domestic and EU sources, provides a total budget of 207.5 billion forints.
During the previous development period of 2014-2020, more than 1000 energy investments were realized under the Territorial and Settlement Development Operational Programme, amounting to nearly HUF 1850 billion. Most applications were about developing land owned by the local council and buildings owned by local companies.
Based on previous results, developments will continue in the 2021-2027 period, with support for energy investments becoming even more prominent in the use of resources.
Several EU directives, including EU environmental principles and programmes, the Green Deal, Fit for 55, and the DNSH, set the direction for energy development. The national strategies provide detailed information on how, when, and to what extent fossil fuels (coal, oil, natural gas) will be replaced by renewable energy sources (solar, wind, and geothermal) and the use of nuclear energy to decarbonize, and how this will lead to a greener, cleaner and more liveable Hungary.
The latest National Energy and Climate Plan (NECP), adopted in October 2024, includes these objectives and covers the decarbonization, energy efficiency, energy security, internal energy market, and research, innovation, and competitiveness dimensions of the Energy Union.
The most important objectives of the new National Energy Strategy are to strengthen energy sovereignty and energy security, to maintain the results of utility cost reduction, and to decarbonize energy production. Energy is one of the most important areas of the TSDOP Plus program, implemented through the so-called Climate-Friendly County priority.
The supported activities include energy efficiency-focused developments of buildings, modernization of their external enclosing structures, modernization of heat-producing equipment based on fossil energy carriers, and related heating and domestic hot water systems.
The equipment installation that utilizes renewable energy sources, including, but not limited to, solar collectors, photovoltaic systems, and biomass-based heating systems, is considered an eligible expense for funding. Additionally, financial support is available for the energy-related development and modernization of significant thermal baths at the local and regional levels.
The Territorial and Settlement Development Operational Programme Plus has specific targets for 2029. These are in line with the objectives of all operational programs. The targets include the number of energy-efficient public buildings and renovated bathrooms set to be finished by the end of the program period.
The targets also include the levels of greenhouse gas emissions, the new production capacities for renewable energy, and the indicators for all produced renewable energy. In the yearly plan for Territorial and Settlement Development Operational Programme Plus, HUF 196 billion have been set aside from EU sources for energy-related projects.
By the beginning of 2025, the beneficiaries have already received HUF 75 billion for 615 projects, of which 74 projects have been completed with a total value of HUF 5.4 billion.
You can read more about the Territorial and Settlement Development Operational Programme Plus energy modernization here: Details
