The new Hungarian Architecture Act stipulates that areas designated as green zones, agricultural zones or forest zones cannot be selected as new development zones or special non-development zones.
Since most solar power plant investments take place in such special non-development zones, these areas are often affected by the new regulations. An exception is allowed if a replacement area of equal size and with the same or higher biological activity value is designated within the administrative boundaries of the same municipality as the new development zone. This replacement area must be classified as a green zone, agricultural zone, or forest zone. The new rule's essence is that the overall size of green areas within a municipality’s administrative boundaries must not decrease.
Solar power developers criticize the new rules, since replacement areas cannot be designated outside the municipality's administrative boundaries. Additionally, the designation of replacement areas involves extra costs, as these areas often require recultivation. Another obstacle is that, according to the regulation, new development zones can only be selected for an investment in case of significant public interest.
Installing 1 megawatt (MW) of capacity requires 1 hectare of land. Due to high connection fees and the need for cost-effective operation, larger projects (20-50 MW) are more popular, which also means greater land requirements. The new regulation is likely to negatively impact many planned (and capacity-approved) projects, necessitating a reassessment of costs and legal requirements.
By Lilla Majoros, Attorney at Law, KCG Partners Law Firm
