Hungary to open tender for geothermal transition of district heating operations
Miskolc geothermal heat plant, Hungary (source: MIskolci Geotermia)
Carlo Cariaga
7 Aug 2025
Hungary is preparing multiple tender rounds to provide funding for geothermal heat and power projects in line with the National Geothermal Strategy.
Starting mid-July 2025, the Hungarian Government through the Jedlik Ányos Energy Program opened the social consultation for a planned series of tenders for projects to boost the utilization of geothermal energy. The draft of the first tender is now available and comments will be accepted until 15 August 2025.
A total of HUF 41 billion (approx. USD 120 million) will be made available for geothermal-based developments through the tenders. HUF 10 billion has been allocated for the first tender round, which seeks to subsidize the first well drilling of a project. From the budget, projects implemented in 10-20 rural locations can receive at least HUF 40 million (approx. USD 117,000) but no more than HUF 1 billion in support (approx. USD 2.9 million).
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 call for proposals will provide HUF 12 billion 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 third call for proposals, which is currently being prepared, offers the largest amount of funding to industry investors. This program element can stimulate geothermal heat generation investments with an interest-free loan of HUF 19 billion, including the assumption of drilling costs if required.
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: Government of Hungary and Green.hu
