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09/14/2026, 12:00
| Media release
Lausanne / Budapest – Alpiq is today officially inaugurating its new Csepel hybrid power plant in Hungary – an innovative facility in Budapest that combines battery storage with highly flexible gas engine generation in a single, integrated operating concept. It provides fast-response capacity for the Hungarian electricity system, strengthening security of supply and facilitating the integration of more renewable energy.
The Csepel gas engine power plant is an example of how innovation can help address one of the central challenges of the energy transition: ensuring that electricity remains available when weather-dependent renewable generation fluctuates. Its smart combination of two complementary technologies enables the facility to react rapidly to grid needs while allowing the gas engines to remain switched off until additional capacity is required. The project is part of Alpiq strategy to add flexibility to the electricity system across Europe in order to contribute to a sustainable electricity supply.
Innovation and flexibility are essential to a secure energy transition. The new Csepel gas engine power plant demonstrates how innovation can bring more flexibility and responsiveness into the system, while reducing operating hours and CO₂ emissions per megawatt-hour generated.
An innovative response to a changing energy system
The approximately EUR 64 million facility combines 50 MW of high-efficiency gas engine capacity with a 5 MW / 10 MWh battery energy storage system. Commissioned in August 2026, the battery responds immediately to changes in the electricity system, while the gas engines start rapidly when additional capacity is required. Together, they can make all the facility’s generation capacity available to the system operator in less than five minutes.
A key innovation is the “zero must-run” operating concept. The battery allows the facility to provide the initial response without keeping the gas engines permanently in operation. The engines remain switched off when the electricity system does not require their capacity – avoiding unnecessary gas consumption and generation-related emissions during these periods.
Developed largely in-house, the Csepel gas engine power plant combines our engineering expertise with our operational experience. This enabled us to design a highly flexible facility tailored to the specific needs of the Hungarian electricity system.
From technical design and procurement through to construction, the facility was developed and managed by Alpiq. This approach enabled the project team to design the plant specifically around the local needs, with a clear focus on speed, reliability and operational efficiency.
More flexibility for more renewable energy
Hungary’s rapid expansion of solar generation is increasing the need for balancing capacity that can compensate for fluctuations in renewable electricity production. The additional flexibility provided by the Csepel gas engine power plant is expected to facilitate the integration of approximately 150 MW of additional photovoltaic capacity into the Hungarian electricity system.
The new power plant complements Alpiq’s existing assets at its Csepel site in Budapest, including the 403 MW Csepel II combined-cycle gas-fired power plant and a 35 MW power-to-heat facility. It uses the site’s existing infrastructure and the expertise of the local operations and maintenance team. Alpiq has been present in Hungary since 2002. The Csepel site can cover around six percent of Hungary's total electricity requirement and also supplies district heating to approximately 20,000 households in South Budapest.
About Alpiq
Alpiq is a leading Swiss energy services provider and electricity producer that operates throughout Europe. It offers its customers comprehensive and efficient services in the fields of energy generation and marketing as well as energy optimisation. Alpiq has been generating climate-friendly and sustainable electricity from renewable Swiss hydropower for more than 100 years. The portfolio also comprises shares in two Swiss nuclear power plants as well as flexible thermal power plants, wind farms, photovoltaic facilities and battery energy storage systems in Europe. The Alpiq Group has around 1,400 employees and is headquartered in Lausanne. Alpiq Holding Ltd. is a private stock corporation in majority private ownership. It is fully controlled by the three shareholder groups of Schweizer Kraftwerksbeteiligungs-AG (SKBAG), the Consortium of Swiss Minority Shareholders (KSM) and EOS Holding SA (EOS).