China Helps Hungary Build Major Solar Energy Storage Facility

Hungary is collaborating with China to construct a $22 million solar energy storage facility in Szolnok, central Hungary. The project aims to double Hungary's storage capacity and promote green energy utilization, making it one of the largest solar energy storage facilities in Central and Eastern Europe.

Located near a major solar farm, the facility will store excess energy during peak solar production times and release it during high demand periods. It will increase Hungary's energy storage capacity from 30 to 60 megawatt-hours, enabling the country to sell excess energy to neighboring countries like Slovakia, Austria, and Serbia.

Why this matters: This project showcases the potential for international cooperation in tackling global climate challenges, and it sets a precedent for other countries to invest in renewable energy solutions. As the world transitions to cleaner energy sources, initiatives like this can help reduce carbon emissions and mitigate the impact of climate change.

The project is part of Hungary's broader strategy to achieve carbon neutrality by 2050. It will reduce Hungary's reliance on fossil fuels and increase the country's solar energy usage, currently at 13% of the national energy mix. Zsolt Varhely, manager of the industrial service division at Forest-Vill, explained, "So, the main problem or difficulty with solar is that the sun is not always shining, the energy is fluctuating, but the consumption needs to always be in balance with the production. That's why these batteries are a good opportunity to have this balance in the system."

China's advanced battery energy storage systems will play a crucial role in the project. Chinese company Huawei will supply the energy storage and power conversion system for the facility. "They are really advanced in battery energy storage systems. The supplier of the energy storage and power conversion system for the current project is Huawei. They are a really strong partner for our company,"said Varhely.

The collaboration between Hungary and China on renewable energy projects is not new. A bilingual report released by the China Economic Information Service (CEIS) during the Thematic Forum on China-Hungary Belt and Road Pragmatic Cooperation in Budapest highlighted the fruitful results of bilateral economic and trade cooperation between the two countries over the past decade.

Bilateral trade between China and Hungary reached $14.52 billion in 2023, a 73% increase compared to 2013. Chinese direct investment in Hungary was €7.6 billion in 2023, accounting for 58% of Hungary's total foreign direct investment, making China the largest source of foreign investment in the country. The report suggests that enterprises should focus on cooperation opportunities in fields such as electric vehicle manufacturing, logistics, renewable energy, and information and communications technology.

The solar energy storage facility in Szolnok is slated to be operational by next summer, with plans underway to construct additional sites nationwide. This project represents a significant step forward in Hungary's sustainable energy efforts and its collaboration with China. As countries worldwide strive to reduce their carbon footprint and transition to cleaner energy sources, initiatives like this showcase the potential for international cooperation in tackling global climate challenges.

Key Takeaways

• Hungary and China are building a $22 million solar energy storage facility in Szolnok, Hungary.
• The facility will double Hungary's storage capacity and promote green energy utilization.
• It will increase Hungary's energy storage capacity from 30 to 60 megawatt-hours.
• The project aims to reduce Hungary's reliance on fossil fuels and increase solar energy usage.
• The facility is expected to be operational by summer 2024, with plans for additional sites nationwide.