Combined geothermal heat and power project launched in Zsana and Kiskunhalas, Hungary
MVM and government representatives at the launch ceremony of the geothermal project in Zsana, Hungary (source: SZTFH)
Carlo Cariaga
25 Mar 2026
Construction work has started on a geothermal project by MVM in Zsana and Kiskunhalas, Hungary which will supply both electricity and heating.
Construction work has been officially launched for a geothermal project in Zsana and Kiskunhalas in Bács-Kiskun County, Hungary that will supply both electricity and direct heat. This will be the first geothermal project of MVM Zöld Generáció Zrt (MVM Green Generation), a subsidiary of Hungarian power company MVM Group.
The project will involve drilling to depths of about 2400 to 2500 meters, where thermal waters at temperatures of 140-150 °C are expected. This will supply a power plant with an installed capacity of 3.5 to 4.5 MWe. The heat will then be supplied to the district heating system of nearby Kiskunhalas. Local business, industrial players, and public institutions may also join the heating system.
Speaking at the launch ceremony, László Nagy, President of the Regulatory Activities Supervisory Authority (SZTFH), recalled that the licensing process for geothermal projects has been simplified three years ago. “The transformation of the regulatory environment has made the implementation of geothermal projects more flexible: at the initiative of the SZTFH, the previous, inefficient geothermal concession system was abolished,” said the President. This has resulted in great interest, with 140 geothermal license applications accepted so far, of which 80 have been approved.
Incidentally, the first contract under the new regulatory rules was signed last year for geothermal heating supply of the MTK Sports Park in Budapest.
Energy Minister Csaba Lantos also remarked that approximately 10% of the 674,000 homes in Hungary connected to district heating are already being supplied with geothermal energy. However, geothermal electricity generation is still low, with the Turawell project as the only example. For this reason, the investment for a combined geothermal heat and power facility is of utmost importance.
Before the end of 2025, MVM announced an HUF 8 billion (around EUR 21 million) investment for geothermal drilling and well testing work that will be done across several sites over the next three years.
