Kaposvar Solar Power Plant: An Example of Green Cooperation Between China and Europe

Kaposvar Solar Power Plant is one of the largest renewable energy facilities in Hungary, generating over 140 million kWh of electricity annually. It saves 45,000 tonnes of standard coal and reduces carbon dioxide emissions by 120,000 tonnes each year. Over the past five years, based on the power plant project, Genertec International has set up its European operations, continuously expanding its market share. It has built a solid foundation for whole-chain business involving new energy development, investment, engineering operation and maintenance, and trade distribution. The Kaposvar Solar Power Plant, as the first new energy project to implement the “invest-build-operate-transfer” model, has paved the road for the company's green and high-quality development in the European market.

1、Integrating with Local Community and Establishing a Localized Team

Following the launch of the project in 2019, China National Machinery Import & Export Corporation Europe Branch (hereinafter referred to as “CMC Europe”) was established in Hungary through the collaborative efforts of employees from China and Hungary. From the very beginning, the company has identified localized operations as a key direction for development. By leveraging its advantages in funding, international business management, technology, and procurement from China, and harnessing local resources through alignment of localized workforce and international management practices, Genertec International enjoys a unique advantage in Europe. Respecting the local culture and traditions, CMC Europe aims to build a localized management team with Genertec characteristics. The development of company policies and organizational structure has heavily incorporated the experiences and suggestions of local employees. Employees see the company as their own family and in turn bring warmth to the team.

Project team of the Kaposvar Solar Power Plant

Bálint Szalai is a Hungarian university graduate who resides in Kaposvar. After graduating, he joined Genertec’s CMC Europe project and felt extremely proud to be involved in the construction of Hungary's largest solar power plant. Upon learning about his role in the project, his family and friends were happy. Bálint hopes to participate in more CMC Europe projects in the future. Having studied electrical automation in university, Bálint was commissioned to be responsible for the power plant’s operation and maintenance after joining the project team. With guidance from his Chinese colleagues, he quickly learned the operational procedures, daily inspection requirements, monitoring system control, and emergency response. He is now capable of independently fulfilling his tasks. Bálint also aspires to continue participating in future projects and further expand his knowledge in solar power plant operation. Like Bálint, more and more employees are growing with the company, while contributing their efforts to the company’s growth.

Bálint Szalai at work

Currently, CMC Europe has around 40 employees, of which 90 percent are local staff. The team consists of professionals in project development, project financing, finance and taxation, legal affairs, EPC project execution, and engineering operations. They have made active efforts in market development and undertaken operation and maintenance service projects for more than 30 power stations in Hungary. The total installed capacity of power utilities it has undertaken in Europe under EPC mode exceeds 300MWp, positioning the company one of the top operation and maintenance service providers for EPC solar power projects in Europe.

2、Promoting Friendship, Enhancing Cooperation, and Fulfilling Social Responsibility

At the turn of 2020, the sudden outbreak of the COVID-19 pandemic posed unprecedented challenges worldwide. When the prevention and control of the virus were at the most critical stage in China, Hungarian people from all walks of life sent batches of prevention materials to China. As the global pandemic continued to spread, Hungary faced a severe shortage of such materials. In response, Genertec-CMC Europe promptly coordinated domestic resources and donated 30,000 medical masks to Kaposvar city.

When China had just managed to control the COVID-19 in March 2020, Hungary was hit hard by the pandemic. In response to a request from the city of Kaposvar, the company’s project equipment procurement division completed the purchasing, customs clearance, and transportation of prevention and control supplies within a week before they were transported to Budapest by the world’s largest military transport aircraft, Antonov. Hungarian Minister of Innovation and Technology László Palkovics, State Secretary for Innovation and Technology Ádám Szentgyörgyi, and State Secretary for Transport Policy László Mosóczi welcomed the shipment at the airport.

In addition to providing epidemic prevention materials to its employees, Genertec International also hired local medical experts to assist in formulating epidemic prevention plans and implementing on-site prevention measures. This ensured that no cluster infections occurred on the project site and those with suspected coronavirus symptoms would be promptly put in quarantine. Infected workers received proper care and treatment during their quarantine, and no severe cases were reported.

When some project personnel were unable to return to work due to the pandemic, both Chinese and local colleagues took over the responsibility to complete the task. Overcoming infection risks and difficulties and inconvenience caused by the virus, they worked tirelessly, often from early morning until late night, to promote the resumption of the project while implementing epidemic prevention measures. Ultimately, this ensured the smooth execution of the project and timely grid connection for power generation.

3、Integrating Resources and Efforts to Expand European Market

Genertec-CMC Europe has been focusing on environmental protection. In addition to strictly adhering to local environmental requirements during construction, the company has taken a series of measures to increase the project’s environmental friendliness. For example, during construction, water channels were set up to reduce soil erosion caused by rainwater and prevent rainwater from flowing out of the factory and affecting the surrounding area. In the selection of photovoltaic brackets, screw piles were used instead of impact piles to reduce soil damage. Garden experts were hired to conduct ecological planning based on local climate conditions and carry out large-scale greening around the factory to protect the local ecological environment. The project adheres to the concept of clean and ecological environmental protection and promotes new energy technology, which is considered advanced even by European standards. After completion, the project was awarded the Best European Photovoltaic Power Station of 2021 by IJ Global magazine, gaining recognition from the international market.

The Kaposvar power project has opened a new chapter in China-Hungarian cooperation and marked Genertec-CMC Europe’s re-entry into the European market and its foray into the field of new energy. It serves as a starting point for the company’s internationalization efforts. Currently, the project is undergoing the transferring phase for a perfect completion of the “invest-build-operate-transfer” model. Solid financial returns can be expected from the project.