Hungary opens funding round for geothermal drilling and development
The Government of Hungary has announced multiple funding rounds to support different development phases of shallow and deep geothermal projects.
The Hungarian Government, through the Jedlik Ányos Energy Program, now has three open funding calls totaling HUF 41 billion (approx. USD 120 million) for geothermal projects. These are the same funding calls that were put under social consultation before the end of 2025.
Starting 2 March 2026, the following two funding calls have been opened:
- The HUF 19 billion call offers interest-free loans to businesses. A minimum of HUF 1 billion and maximum of HUF 6 billion will be allocated for deep geothermal investments, while shallow geothermal projects are eligible for loans of HUF 100 million to HUF 1 billion. 10% of the budget has been allocated for geothermal.
- The HUF 10 billion call seeks to subsidize the first well drilling of a geothermal project. Ten to twenty rural projects can receive at least HUF 40 million, but not more than HUF 1 billion. If the drilling proves successful, the state contribution can cover one tenth of the total eligible costs, while in case of failure it can cover up to half. The deadline for physical completion is two years from the entry into force of the support contract, but no later than the end of 2028.
Another HUF 12 billion call has been opened since January. This funding aims to support the development of a grid-connected geothermal heat and electricity generation system based on an existing production and injection well. The entire amount can be used to implement a single development. Any area of the country, except Budapest, can be considered as an investment location.
The funding call for geothermal projects is part of a wider HUF 130 billion allocation for sectoral developments, including energy storage projects and energy efficiency improvements.
The funding initiative is in line with the National Geothermal Strategy published by the Ministry of Energy in 2024, which sets a goal to double domestic energy use in Hungary by 2030. With base output of 6.4 PJ, the Ministry is targeting growth to 8 PJ by 2026, and to 12-13 PJ by 2030.
Source: Origo.hu