A joint geothermal heat and power project has been initiated in Zsana and Kiskunhalas, Hungary.

Construction has officially begun on a geothermal project in Zsana and Kiskunhalas, located in Bács-Kiskun County, Hungary, which will provide both electricity and direct heating. This marks the first geothermal initiative by MVM Zöld Generáció Zrt (MVM Green Generation), a subsidiary of the Hungarian power company MVM Group.

The project will involve drilling to depths of approximately 2400 to 2500 meters, where thermal waters with temperatures between 140-150 °C are anticipated. This will support a power plant with an installed capacity ranging from 3.5 to 4.5 MWe. The generated heat will be directed to the district heating system of nearby Kiskunhalas, and local businesses, industries, and public institutions may also connect to this heating network.

At the launch event, László Nagy, President of the Regulatory Activities Supervisory Authority (SZTFH), noted that the licensing process for geothermal projects was streamlined three years ago. He stated, “The transformation of the regulatory environment has made the execution of geothermal projects more flexible: at the SZTFH's initiative, the previous, inefficient geothermal concession system was abolished.” This change has led to significant interest, with 140 geothermal license applications submitted, of which 80 have been granted approval.

Additionally, the first contract under the new regulatory framework was signed last year for the geothermal heating of the MTK Sports Park in Budapest.

Energy Minister Csaba Lantos mentioned that about 10% of the 674,000 homes connected to district heating in Hungary are currently receiving geothermal energy. However, geothermal electricity production remains minimal, with the Turawell project being the sole example. Therefore, the investment in a combined geothermal heating and power facility is considered highly significant.

Before the end of 2025, MVM plans to invest HUF 8 billion (approximately EUR 21 million) in geothermal drilling and well testing activities over the next three years at multiple locations.