Axpo will offtake all the energy produced by an 18 MW plant in Barcs, southern Hungary, through the end of 2025, and all the energy from a 23 MW plant in Szakoly, eastern Hungary, and a 20 MW plant in Sz?c, western Hungary, through the end of 2026. The solar plant in Barcs began operating last May, while the Szakoly and Sz?c plants began operating in October.

The agreement represents Axpo’s first electricity purchase agreements in Hungary. A statement from the company said the agreements address balancing risks and offer revenue certainty by hedging against spot price market volatility.

Peter Hornyak, Axpo’s senior 0riginator in Hungary, said that the “tremendous growth” of solar projects in recent years “has triggered a steep rise in balancing costs for Hungarian renewable energy producers which far exceeds the average in many other European countries … In such a volatile market, working closely with counterparties and using Axpo’s portfolio management expertise enables us to secure future market prices, predictable costs and a stable stream of income for our customers.”

Hungary's cumulative solar capacity reached nearly 7.7 GW by the end of 2024, up from 5.9 GW at the close of the previous year, according to the latest data from the International Renewable Energy Agency (IRENA).

Earlier this year, Axpo signed its first corporate power purchase agreement in Croatia.