The Electricity Act 2001 introduced feed-in tariff support mechanism for the electricity generation from renewable energy installations with capacity over 100 kW in Hungary.
The Feed-in tariff rate was fixed up to 2010 and was the same for all renewable energy technology types. The tariff was annually adjusted with inflation. The period time for the support was unspecified ultimately resulting with the eligibility period equal to the lifetime of the installation eligible. The tariff was to be paid by the main electricity producer (MVM) where a power plant is connected to the transmission network or by the local service provider if the independent producer is connected to the distribution network.
Purchase of the renewable electricity was mandatory.
The feed-in tariff levels are regulated by the Ministry of Economy and Transport through the decrees.
The Ministerial Decree GKM 56/2002 established feed-in tariff for renewable electricity generation for all RES plants on the level of EURcents 9.4/kWh.
The Electricity Act 2001 included a reference to intent to move towards a portfolio-based system, met by a renewable energy obligation and tradable green certificates. The policy framework was to be installed further in the future.