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MAVIR Takes Major Step Forward, Solar Investments on the Horizon

The Hungarian Transmission System Operator, MAVIR, is set to boost regional power infrastructure with a new energy storage facility near its substation in Szolnok, optimizing grid connectivity for newly established solar power plants without further network interventions.
The initiative will enhance the grid's capacity to accommodate the increasing amount of weather-dependent power generation.

Forest-Vill Ltd. has been awarded the contract to install the planned energy storage system, situated about 1.5 kilometers from MAVIR Zrt.'s Szolnok substation. According to the European Union's public procurement announcement, the estimated value of the contract is approximately 14.1 billion Hungarian forints, with the winning bid at 8.5 billion forints.

The investment, entirely funded by the EU Network Integrated Energy Storage Investments Support Project, operates on a post-financing basis. The necessity for this 20/40 megawatt/hour energy storage system stems from the demand to enable network connectivity for the region's weather-dependent (solar) power plants without the need for other network interventions.

Forest-Vill is responsible for the turnkey completion and commissioning of the energy storage system, a process that involves various sub-tasks from planning, obtaining permits, actual construction, and commissioning, to training staff and devising a quality assurance plan. Despite competition from eleven other bidders, only eight offers remained valid, leaving companies such as Chint Electric Co. Ltd., Metalcom Zrt., Ion System Kft., Vabeko Kft., I&C Energo Kft., Energy Zrt., and Extor Zrt. without the contract.

The deployment of energy storage and the development and expansion of the transmission and distribution electrical network are crucial for accommodating the fluctuating output from an increasing number of weather-dependent power plants, whose production can be unpredictable.

Recent government actions include acceleration of energy storage installation with a new industrial energy storage support program that has generated significant interest, as well as the residential Plusz Program, which offers state funding for solar-plus-storage systems. To understand the available energy storage options for consumers, their costs, and installation processes, especially for existing home solar power systems, the business newspaper Világgazdaság has inquired with the three major domestic electricity suppliers.

FOREST-VILL EVERYWHERE

Based on a long list of projects, Forest-Vill is a seasoned partner of MAVIR. The company most recently reported in January that its developments across multiple locations in the country, to be completed by the end of 2024, would enable the connection of additional solar power capacities to the network. Forest-Vill secured three packages out of six in MAVIR's public procurement tender, aimed at increasing the load capacity of Hungarian substations, with a combined value of over 3 billion forints.

MAVIR's extensive substation and transmission line development project commenced in 2022. According to their announcement at the time, the investments come with a 15.410 billion forint non-repayable grant from the Hungarian government, provided through the Recovery and Resilience Facility (RRF). The company targets the development of twenty substations and seven transmission lines. Eleven substations are located in Transdanubia, while nine operate in Central Hungary and the North Great Plain region. Additionally, seven 220-kilovolt transmission lines will see upgraded load capacity. The project is set to be completed by April 30, 2026.
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