Tuned to heat – A billion-forint opportunity to modernize district heating systems

Tuned to heat – A billion-forint opportunity to modernize district heating systems

Caprica Consulting
2025. április 17. 11:14
Hungary’s district heating sector may soon receive a major boost: a funding call with a budget of HUF 45 billion has been published for public consultation, offering district heating providers a gateway to an energy-efficient and sustainable future.

The call, identified by code 2025/MA/TÁVHŐ/01, aims to establish modern infrastructure based on green principles - not just to warm radiators, but to breathe new life into the entire sector.

The goal: lower emissions, more efficient operation

The call aligns with Hungary’s climate goals, particularly the target of reducing greenhouse gas emissions by at least 50% by 2030. The modernization effort primarily focuses on replacing outdated infrastructure and integrating renewable energy sources into district heating networks. The goal is to reduce heat loss, improve efficiency, and ensure long-term cost savings - all while maintaining supply security.

Who can apply?

Support is available exclusively to district heating providers, who must apply individually (without consortia). Applicants must already meet the "efficient district heating" criteria or commit to achieving compliance within three years. Other conditions include having one fully closed business year and non-negative equity.

What can be funded?

The call outlines four main types of independently eligible activities:

  • Separation and modernization of heating centers
  • Replacement and underground installation of district heating pipelines
  • Construction of heat storage systems
  • Integration of renewable or waste heat-based heat producers into the system

Additional non-independent but essential activities may also be supported, such as technical planning, public procurement, project management, and implementation of remote monitoring systems.

Amount and intensity of support

The amount of funding available ranges between HUF 20 million and HUF 1.5 billion. The support intensity may reach up to 100% in the case of natural monopolies, while market players operating in a competitive environment are eligible for a base intensity of 30%, which can be increased depending on company size, up to a maximum of 50%

What Is not supported?

The call explicitly excludes several types of developments, such as those using fossil fuels, inefficient consumer heating systems, and real estate purchases.

Expected launch

The public consultation period ended on March 31, 2025, and the final version of the call is expected shortly. Once applications are submitted, projects may begin at the applicant’s own risk, with a 40-month implementation window.

 

A címkép forrása: Shutterstock

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