During the public consultation this spring, we already introduced the main directions of the upcoming call for proposals – in this blog post, we discussed the objectives and the planned framework conditions in detail.
The large-scale district heating development program has now been finalized: the call for proposals with the identifier 2025/MA/TÁVHŐ/02 has been published, supporting the modernization and development of district heating systems based on renewable energy sources with a budget of HUF 51 billion.
The objective remains unchanged: cleaner, more modern, and climate-friendly heat supply in Hungarian municipalities – now with concrete conditions, application deadlines, and available funding amounts.
Strategic objective: greener district heating, stronger energy independence
The focus of the call remains on the effort to:
- reduce the share of fossil energy use in the district heating sector,
- increase the proportion of heat generated from renewable energy sources,
- while improving domestic supply security and reducing import dependency.
Who can apply, and for what?
Eligible applicants:
- legal entities headquartered in Hungary or in the EEA, with a domestic branch office;
- entities holding or acquiring by the project’s completion a license for district heat production;
- applicants must have a heat purchase agreement for at least 5 years from a licensed district heating service provider.
Consortium applications are not allowed.
Funding amount: minimum HUF 200 million, maximum HUF 3.5 billion.
Type of support: non-refundable grant
Intensity:
- up to 45% for large enterprises
- up to 65% for SMEs
Eligible developments
The final call confirms that only renewable or waste heat-based investments are eligible for support.
Eligible as standalone developments:
- installation of heat pumps, biomass or geothermal systems,
- complete conversion of existing fossil-based systems to renewable,
- integration of waste heat recovery units into district heating,
- installation of heat storage facilities.
Not eligible:
- electricity generation with solar panels,
- geothermal drilling (only surface systems are eligible),
- renovation of existing district heating pipelines,
- heat production based on fossil primary energy sources.
Key dates
The call will be available in multiple submission phases starting from July 21, 2025; the deadline for the first round is September 1, 2025, at 16:00. The final deadline for subsequent phases is April 13, 2026.
Implementation and financing
The grant is reimbursed after implementation, but an advance of up to 25% may be requested. The maximum project duration is 40 months, and a 3-year maintenance obligation applies. Projects must result in a verifiable reduction in GHG emissions or demonstrate the replacement of fossil energy.
What can applicants expect?
According to the finalized call, this funding scheme:
- provides significant financial support for the transition to green heat production,
- favors applicants committing to higher renewable shares or innovative technologies,
- requires strict administrative compliance and professionally substantiated project documentation.
For more information or consultation, please fill out our contact form.