Hungary: Obligation to undertake energy efficiency audits

Large companies are obliged to conduct an energy audit every fourth year and to register at the Hungarian Energy and public utility regulatory office (Magyar Energetikai és Közmű-szabályozási Hivatal - MEKH). The registration obligation and data provision obligation on energy savings will be updated on a yearly basis. Enterprises can alternatively adopt an energy management system (ISO 50001 certification), which will exempt them from the obligation. The energy audit has to be conducted by an approved registered energy auditor.
Sanctions will be imposed on registered enterprises and/or auditors by the MEKH, once non-compliance is detected.
Energy audit obligation also applies to enterprises that claim a corporate income tax relief after energy efficiency investment measures.
Act LVII/2015 (amended in each year since its enactment) requires the government to set out the national energy saving target for 2020 and 2030. The primary energy consumption and final energy consumption goals to be achieved by 2020 and 2030 are defined as indicative energy efficiency targets. These targets are set out in the integrated national energy and climate plan in accordance with Articles 4 and 6 of Regulation (EU) 2018/1999 of the European Parliament and of the Council. When setting the indicative energy efficiency target for 2030, it should be taken into account that the European Union's energy consumption in 2030 should not exceed 1,128 Mtoe of primary energy and 846 Mtoe of final energy. The results of measures taken to support households shall be communicated to the European Commission in the framework of the integrated national energy and climate plan.

The Act also outlines the responsibilities of the Hungarian Energy and public utility regulatory office (MEKH) to monitor the quality of energy efficiency measures adopted by companies. MEKH’s responsibilities include collecting data on energy efficiency, recording and publishing energy efficiency savings, maintaining a list of energy auditors and an energy efficiency website, undertaking assessments of energy supply sources, classifying new energy production facilities based on their efficiency, approving the cost-benefit analysis and keeping a record of costs and expenditures. MEKH should also outline minimum energy efficiency standards for government buildings: at least 3% of the total area is subject to energy efficiency renovations annually.

On 4 June 2020, the Hungarian Parliament adopted resolution 18/2020 on 'non-deferred tasks arising from climate change'. This resolution approves the government's climate and nature protection plan and related energy policy strategies. This plan and related documents aim to mitigate and adapt to climate change, modernise the country’s energy systems, increase energy efficiency and decarbonise electricity generation. The document sets out a fund of €92 million for small and medium-sized enterprises switching from renewable energy sources to energy production. It sets targets for building solar capacity, low-carbon electricity generation for electric buses, and encourages the proliferation of electric vehicles (see also Company incentives to deploy electric vehicles).

Climate goals set forth in this document:

• capacity of solar power plants must be increased six-fold by 2030 from the base year of 2020;
• 90% of the electricity supply will be zero carbon by 2030.