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Hungary offers loans to double geothermal energy use by 2030

Hungary’s Ministry of Energy Affairs has announced the National Geothermal Strategy to boost geothermal energy use from the current 6.4 PJ to 8 PJ by 2026, then to 12-13 PJ by 2030, increasing the share of geothermal energy in Hungary's total heat production from 6.5% to 25-30% over that horizon. Geothermal is expected to replace about 1.2 bcm of gas by 2035.

Hungary estimates that around HUF165bn (€420m) of funding is needed to create a favourable financial environment for investments. In the first phase of the strategy, the Ministry of Energy Affairs is launching a HUF34bn (€86m) state subsidised investment credit facility (the Geothermal Investment Loan Facility) for drilling to mitigate investors’ risks with an additional investment of about HUF20bn (€50m) to install district heating by public institutions. 

Hungary is estimated to have the highest geothermal potential in Europe (installed thermal capacity of 350 MWth with 8 000 drillings), with the technology providing about 11% of the country’s district heating systems in 2021. 

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