Hungarian regulatory body withdraws Budapest geothermal exploration permit of PannErgy
The regulatory body of Hungary has declared that the thermal waters of Budapest will be under a central management to ensure long-term sustainable utilization.
The Supervisory Authority for Regulated Activities (SZTFH) of Hungary has declared that the entire geothermal thermal spring environment of Budapest will be a closed concession area, citing the resources as particularly sensitive and vulnerable. As a consequence of this, the geothermal exploration rights near Budapest that had previously been granted to PannErgy have been revoked.
According to Regulation No. 7/2025 of the SZTFH, the research, extraction, and utilization of thermal water within the specified area will require unified, central management. Unfortunately, the target zone for planned geothermal development by PannErgy based on exploration rights also falls within this restricted area.
A statement by PannErgy states that the company is now considering all the legal, professional, and business operations available to help decide on the fate of the potential geothermal project in Budapest.
For their part, the SZTFH also sent a position paper to publication VG explaining how they came to the decision. According to the position paper, the experts under SZTFH have been investigating the risk and opportunities relating to thermal water utilization in Budapest. A series of geophysical, geological, and hydrogeological studies were done to create a model that supports the work of water management authorities.
However, the SZTFH emphasizes that the regulation will enter into force on 20 June 2025 but will not affect previously issues exploration permits, particularly those that were acquired before the regulation came into force. Rather, the exploration permit of PannErgy was withdrawn because the company had not carried out the exploration tasks specified in the permit at the time frame specified.
The SZTFH goes on to state the agency continues to promote geothermal energy as a safe and sustainable renewable energy. The authority will continue to support the licensing processes, supervise legal operations, and work to ensure that geothermal energy becomes an important part of the energy supply of Hungary.
