Business 4 October 2024, 4:07pm

Hungary earmarks HUF 28 billion for e-charging stations

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Over the next few years, more than a hundred public e-charging stations will be set up across Hungary under a new HUF 28 billion scheme, for which the final call for proposals has been made available on Friday. Loan applications can be submitted from 6 November 2024 until the end of May next year, the Ministry of Energy said. The initiative also encourages the installation of charging points equipped with solar panels and energy storage outside the capital, mainly in white spots on the grid.

The aim of this tender is to accelerate the energy transition and build the infrastructure needed for zero-emission transport. The tender will provide additional funding to companies with a licence to operate an electric charging station.

Applicants must commit to installing at least one e-charging station in any of the municipalities in the districts with fewer charging points.

A technical call will be used to select this location, for which a first round of applications will be open from 14 to 21 October 2024.

Companies can apply for a soft loan between HUF 100 million and HUF 4 billion, with a maximum term of 15 years in a base case scenario, which must be supplemented by at least 10% equity.

The state will contribute 35% of eligible costs for large companies, 55% for medium-sized companies, and 65% for micro and small companies.

In addition to the soft loan, non-repayable aid may be granted, for example, if the planned charging station is located in a preferred district listed in the call for proposals or is equipped with electricity storage and/or renewable electricity production units.

All charging points built or upgraded with support must be capable of smart charging. Electronic payment must also be provided.

Loan contracts must be concluded by the end of 2025 at the latest, with the main rule being three years from the date of conclusion of the contract for the physical completion of the projects. The investments will bring us closer to achieving nationwide coverage, making clean and quiet green cars more convenient to use and more attractive, according to the ministry.

The rise of electric cars has also contributed to an 11% drop in greenhouse gas emissions from domestic transport last year, compared to the previous steady growth.

With the new programme, the government is doubling the amount of funding available for the greening of the sector and the spread of electromobility.

Since the beginning of February, businesses can apply for a non-repayable grant for the purchase of a pure electric car, van or minibus. From a budget of HUF 30 billion they can cover up to HUF 4 million of the cost of buying a vehicle, depending on the battery capacity.

To date, companies have requested a total of HUF 17.7 billion for the purchase of nearly 4,600 vehicles.

Together with the new tender, a total of HUF 260 billion worth of various government programmes will now encourage Hungarian families and businesses to produce and store green energy.

The Ministry of Energy has monthly reports on the number of green licence plates issued. The releases are based on data by the Ministry of the Interior, but the latter has not updated its data series since July. We have inquired at the Energy Ministry about the delayed publication of the August and September figures, highlighting the importance of battery electric vehicle uptake in light of the dwindling EV sales in Europe. We will write about the issue as soon as they get back to us or when the Ministry of the Interior publishes new data.