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MET Group invests in renewable energy production

MET Group invests in renewable energy production

January 18, 2018
The construction of one of the biggest solar power plants in Hungary is set to start soon, as MET Group has approved a final investment decision on the 17.6 megawatt (MW) Dunai Solar Park project. The solar park project fits into the Group’s renewable energy strategy.

The solar power plant, which is expected to become operational in the third quarter (Q3) of 2018, will be built over an area of 40 hectares, partly occupying the site of the Dunamenti Erőmű power plant. The EUR 25mn project will supply power equivalent to the consumption of around nine thousand households.

MET Dunai Solar Park Kft., owned by MET Group, plans to rely on market-based project finance provided by commercial banks to implement the project. The solar power plant will incorporate the latest technology, and has an expected lifetime of at least 25 years, with revenues for the first 20 years of this period guaranteed under a contract corresponding to a mandatory electricity off-take (KÁT) licence. The project will be implemented on an unused, peripheral area on the site of the Dunamenti Erőmű power plant and the area of a former fish farm, with an existing link to the power grid at a former steam turbine installation.

While the power needs of an average household could be met by around 8–10 solar panels, the solar power plant near Százhalombatta will comprise more than 76,000 solar panels. Preparations for the project started one and a half years ago, while the planning and licensing process was launched a year ago.

“Renewable energy production is not only a business opportunity but also an energy policy goal which fits perfectly into MET Group’s strategy. The solar park that we will soon build will serve as an efficient supplement to conventional gas or coal-fired power plants, contributing to energy supply security and the modernization of Hungary’s power generation portfolio,” said Péter Horváth, deputy CEO of Dunamenti Erőmű and Director of Business Development at MET Power.

MET Group, as one of the leaders in European energy trading, has ambitious plans in renewable energy production in the Central and Eastern European (CEE) region. In Hungary, the company plans to install a total of 50–100 MW of solar generating capacity. This also means that Dunai Solar Park, the first solar power plant of the Group, will serve as a pilot project for further investments.

About the project

The solar park will have an installed capacity of 17.6 MW, and will supply power to the national power transmission grid operated by MAVIR, to be transmitted to any part of the country via the national grid. However, due to the physics of electricity, it will mostly be used locally and in the vicinity of Százhalombatta. The solar park will save about 9,000 tonnes in carbon dioxide emissions, contributing to the protection of the atmosphere. This amount is roughly equivalent to the annual CO2 emissions of two thousand cars.

The solar power plant will be built by MET Dunai Solar Park Kft., a company independent from Dunamenti Erőmű Zrt. The company is 100% owned by MET Power AG, which also owns a majority stake in Dunamenti Erőmű Zrt.