MVM to Build Hybrid Geothermal Power Plant

MVM Zöld Generáció [Green Generation], a unit of state-owned energy company MVM Group, will build a hybrid geothermal power plant, the first in Hungary, near Zsana (S Hungary), Energy Minister Csaba Lantos announced on site on Tuesday.

The company will drill to a depth of 2,400-2,500 meters to tap a 140-150-degree Celsius thermal water source, the minister said. A 3.5-4.5 MW power plant could be built at the site, he stated.

He was of the view that Hungary needed to achieve greater energy sovereignty and this aligns well with the previously adopted nuclear strategy: in addition to extending the operating life of the Paks I plant, the plant Paks II is being built, and small modular reactors may also be introduced starting in the 2030s. One strategic pillar is therefore nuclear energy, and the other is renewable energy sources, he added.

Solar panels account for nearly 29% of domestic electricity generation, making Hungary a world leader. New wind energy capacities will also complement solar panel systems in the coming years. At the same time, approximately 60% of power plant capacity in Hungary is already weather-dependent, which is why the development of non-weather-dependent renewable energy sources – such as geothermal energy, biomass, and biogas – is of paramount importance.

He added that Hungary is already among the countries with the most significant geothermal heating capacity; geothermal energy provides heating for approximately 10% of the roughly 674,000 homes connected to district heating. At the same time, electricity generation in this sector remains limited, which is why the investment project now getting underway is of particular importance.

MVM CEO Károly Mátrai called the project "a significant step" toward increased use of renewables and greater energy sovereignty.