The 23 MWp photovoltaic plant will cover an area of almost 32 hectares in which more than 33,000 solar panels will be installed. The construction of the solar park in the municipality of Kaba (about 200 km east of Budapest) is the result of an in-house, greenfield project development effort launched Contact online >>
The 23 MWp photovoltaic plant will cover an area of almost 32 hectares in which more than 33,000 solar panels will be installed. The construction of the solar park in the municipality of Kaba (about 200 km east of Budapest) is the result of an in-house, greenfield project development effort launched after the commissioning of the MET Kabai Solar Park (KSP) project in 2021.
It is an interesting feature that during the construction of Kaba 2, the project management team will also be supported by AI (Artificial Intelligence) technology to follow the works in progress. The software will analyse visual data captured by drones on all aspects of the construction, including compliance with design execution and timeline to prevent errors, as well as to boost efficiency.
MET Group is an integrated European energy company, headquartered in Switzerland, with activities and assets in natural gas and power markets. MET is present in 15 countries through subsidiaries, 30 national gas markets, and 22 international trading hubs. MET has extensive experience in operating green (renewable) and flexible (conventional) energy assets, thus providing the widest possible support to energy transition. In 2022, MET Group''s consolidated sales revenue amounted to EUR 41.5 billion, with a total traded volume of natural gas amounting to 109 BCM and total traded electricity of 67 TWh.
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SolServices Ltd. is among the first in Hungary to develop photovoltaic solar parks, each with an installed capacity of close to 50 megawatts. In addition to the multiplication of the 0.5 megawatt capacity size that has been characteristic of Hungary so far, the projects stand out from other Central European solar park projects in several respects, including the consideration of ecological aspects and the protection of agricultural lands to the highest extent possible – explained Gábor Farkas, Managing Director of the company.
How would you introduce SolServices Ltd. and its activities?
Meanwhile, it is also apparent that more than 10,000 MW of installed capacity operated in the Hungarian electricity system around 2010, which decreased to 8,900 MW by the end of 2019. According to the forecast, the available capacity of the currently operational power plants is projected to be around 7,000 MW over the next five years, and in line with current trends, without any intervention, it could decline to 4,800 MW around 2034.
The consequences of the above-mentioned two tendencies – i.e. the aging of the Hungarian power plant portfolio and the increase in electricity demand – may even raise security of supply issues, unless the development of utility-scale power plants gains a momentum in the near future. A significant part of the current power plant park must be replaced, and having recognised this, we can provide a realistic alternative by producing electricity in Hungary in a clean and sustainable way.
And is this where the utility-scale solar power plants come into the picture?
In the past, there was a considerable lack of information and experience on the side of both the authorities and domestic small investors regarding the licensing of projects of this size, therefore entering the market posed a significant challenge, inducing an intensive learning process of almost three years, in which I think, SolServices Ltd. took on a substantial role. We tried to channel our existing international best practices into the domestic processes, and basically we were among the first to go through this process together with the Hungarian authorities and NGOs, which provided important lessons for all concerned.
Contributing to this, for example, we have developed best practices for the coexistence of the surrounding ecological environment and the local residents, and we also pay special attention to the conservation of green areas and their environmentally friendly utilization.
Furthermore, it is important to take into account that this is the size range that already allows and even requires the investor to associate different grid infrastructure developments related to a solar park. These grid developments will then support the public grid and contribute to the complex and comprehensive transformation of the domestic electricity system, which is essential on the way towards carbon neutrality.
Fundamentally, these are the size of solar parks that will make it possible to significantly reduce the country''s dependence on energy imports, and at the same time increase security of supply based on clean and domestic resources by exploiting the competitive advantage over the fossil fuel-based producers that still dominate the region to this day.
This could mean a considerable market potential in the future.
Undoubtedly. For the time being, we are focusing on the large-scale solar (LSS) market, this is our specialty. However, it is important to note that it is not our goal to cover the entire territory of Hungary with solar panels. We believe in creating a balanced and healthy system where household-sized, industrial/commercial-sized, and ground-mounted large built-in capacity projects not only co-exist, but necessarily complement each other.
Solar park development activities are similar to property development, which means that our responsibilities are the site selection, the arrangement of design and the full licensing process.
This last sentence inevitably raises the question: what do you think about the assumptions and criticisms that developers were created only for "license trade", they will not really build projects?
I think this is a misconception due to the relative immaturity of the Hungarian market, which has arisen many times in the recent period, but this is already natural in more developed markets. Although the technology may seem novel in our region, so the experience available is limited, but let me draw an analogy to shed more light on the issue.
I do not think anyone considers it objectionable when a property developer buys a condemned building at his own cost, surveys, demolishes, arranges design, permits and financing, and then freely decides whether to sell the entire package to an investor, or to construct the building and possibly operate the project as part of his own investment.
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